Illinois Biometric Data Privacy Law Amendment Reduces Settlement Amounts
Background
The Illinois Biometric Information Privacy Act (BIPA) has been a hot topic in the legal realm, with lawsuits resulting in astronomical damages claims and settlements for alleged violations
However, a recent change in the law may significantly reduce the financial burden for carriers indemnifying these lawsuits
Key Change
In a 4-3 decision, the Illinois Supreme Court ruled that a separate claim accrues under the Act each time a private entity scans or transmits an individual's biometric data
This ruling effectively limits the potential damages that can be claimed in these lawsuits
Impact on Carriers
The amendment to BIPA has significant implications for carriers that provide insurance to businesses that collect biometric data
With the reduction in potential damages, carriers may see a decrease in the settlement amounts they are required to pay
Limitations
It's important to note that the amendment does not eliminate the potential for large settlements
Damages may still be significant in cases involving multiple scans or transmissions of biometric data or if other violations of BIPA are alleged
Conclusion
The amendment to BIPA is a significant development that could have a major impact on the litigation landscape in Illinois
Carriers that provide insurance to businesses that collect biometric data should carefully review the amendment and seek legal counsel to understand its implications for their business
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