Biometric Privacy: The $12M Speedway Settlement and Its Implications for Developers

Biometric Privacy: The $12M Speedway Settlement and Its Implications for Developers

The recent $12 million class action settlement with Speedway over biometric data misuse highlights the growing importance of data privacy in the tech industry. This settlement, which resolves allegations that Speedway violated the Illinois Biometric Information Privacy Act (BIPA) by using finger scanners without proper notice and consent, serves as a critical case study for developers. In this technical breakdown, we will explore the implications of this settlement and provide actionable insights for ensuring compliance and protecting user data.

The Speedway Settlement: A Closer Look

The Speedway settlement, which received preliminary court approval on July 10, 2025, covers employees who used finger scanners on time clocks between September 1, 2012, and November 1, 2017. The settlement fund of $12,122,775 is expected to result in approximate payouts of $970 per person, after deducting settlement fees and costs. This significant settlement amount underscores the financial and reputational risks associated with non-compliance with biometric privacy laws.

Key Provisions of the Illinois Biometric Information Privacy Act (BIPA)

The Illinois BIPA is one of the most stringent biometric privacy laws in the United States. It requires companies to:

1. Inform Users: Clearly inform users that their biometric data is being collected, stored, and used.
2. Obtain Written Consent: Obtain written consent from users before collecting or using their biometric data.
3. Develop a Retention Schedule: Establish a publicly available retention schedule and guidelines for permanently destroying biometric data when the initial purpose of collection is no longer relevant.

Technical Considerations for Developers

Developers play a crucial role in ensuring compliance with biometric privacy laws. Here are some key technical considerations:

1. Data Collection and Storage

• Encryption**: Use strong encryption methods to protect biometric data during both transmission and storage.
• Access Controls**: Implement strict access controls to ensure that only authorized personnel can access biometric data.
• Audit Logs**: Maintain detailed audit logs to track all access and modifications to biometric data.

2. User Consent and Transparency

• Clear Notifications**: Provide clear and concise notifications to users about the collection and use of their biometric data.
• Consent Forms**: Develop and use standardized consent forms that comply with BIPA requirements.
• User Interface**: Design user interfaces that make it easy for users to understand and manage their biometric data preferences.

3. Data Retention and Destruction

• Retention Policy**: Develop and implement a clear data retention policy that aligns with BIPA guidelines.
• Automated Destruction**: Use automated processes to ensure that biometric data is destroyed when it is no longer needed.
• Compliance Audits**: Conduct regular compliance audits to ensure that data retention and destruction policies are being followed.

The Impact on Future Developments

The Speedway settlement is a wake-up call for developers and businesses using biometric data. It highlights the need for robust data protection measures and strict adherence to privacy laws. Projections suggest that as biometric technologies become more prevalent, the legal scrutiny and regulatory requirements will only intensify.

The Bottom Line

The Speedway settlement serves as a critical reminder of the importance of biometric data privacy. By implementing robust data protection measures and ensuring compliance with laws like BIPA, developers can help their organizations avoid costly legal issues and build trust with users. As biometric technologies continue to evolve, staying ahead of the regulatory curve will be essential for long-term success.