Dutch regulator fines Clearview AI $33.6 million for GDPR violations

Clearview AI Faces Financial Woes: Clearview AI, a troubled facial recognition company, is facing bankruptcy after having to give up 23 percent of its equity to class action plaintiffs due to a lack of cash. This stake was valued at around $50 million. Additionally, regulators in the Netherlands have imposed a substantial fine for breaching the GDPR.

The Dutch Data Protection Authority (DPA) has fined Clearview AI 30.5 million euros ($33.6 million US) for violating the General Data Protection Regulation (GDPR) in Europe. The DPA has deemed Clearview’s database, which holds over 40 billion images, as illegal under European law.

“Facial recognition is a highly invasive technology that cannot be indiscriminately used,” stated Dutch DPA Chairman Aleid Wolfsen. “The collection of images without consent poses a serious threat to privacy and must be regulated.” The DPA has warned that any businesses or government entities found using Clearview AI’s database will also face fines.

The DPA has instructed Clearview to stop all GDPR violations or risk an additional non-compliance fine of €5.1 million ($5.6 million). Clearview’s lack of response to the initial charges has voided its right to appeal, making the additional fine inevitable.

Hoan Ton-That stirred controversy in a 2020 CNN Business interview.

Clearview AI, based in the US, has disregarded international laws by selling its services overseas without compliance. The DPA is exploring enforcement options, including holding Clearview management personally accountable for the violations.

Wolfsen stated, “Such actions will not go unpunished. We are investigating the possibility of holding the company’s management liable for these violations.”

While facial recognition can aid law enforcement, oversight is crucial. Clearview’s lack of transparency and cooperation with regulators has raised concerns about its operations.

Clearview’s practices have faced opposition from various countries, leading to legal actions and fines. The company’s disregard for privacy and data protection laws has put it on the brink of bankruptcy despite its valuable consumer data.