Illinois’ biometric data privacy lawsuit merry-go-round keeps spinning

Cyrptocurrency platform Coinbase is facing allegations it failed to obtain written consent before capturing face biometrics from people applying for new accounts, and to publish its biometric data use and retention policies. A lawsuit has been filed against the crypto trader under Illinois’ Biometric Information Privacy Act.

Coinbase uses Jumio and Onfido for biometric identity verification, though the latter is not named in the complaint (hosted by Bloomberg Law) filed in the Northern District of Illinois. Instead, the complaint makes clear that plaintiffs understand Coinbase is responsible for collecting the necessary permissions.

The lawsuit was filed following an attempt by plaintiffs to go through arbitration with Coinbase. Nearly 8,000 people filed individual demands for arbitration in March, 2024, and the plaintiffs joined over 2,500 people in a second wave of demands a month later. Coinbase argued the matter should be handled in small claims court and through a pre-dispute resolution process.

The arbitrator denied Coinbase’s requests. When arbitration fees arose, the plaintiffs say they paid them but Coinbase refused. The arbitration was then closed and plaintiffs freed up to file a case against Coinbase.

This is not the first time that Coinbase has been sued under BIPA. A 2023 lawsuit filed on similar ground was sent to arbitration this past January, according to PacerMonitor, and dismissed without prejudice, meaning if that arbitration stalls too, it could be refiled.

Jumio’s success signing up crypto exchange platforms as ID verification clients like Binance and Phemex has proved something of a legal headache for the company.

Walmart settles with delivery driver

Walmart has settled claims under BIPA that it failed to gather informed consent when collecting face biometrics from delivery drivers, Law360 reports.

The American retail giant’s Spark app chose Persona for identity verification with selfie biometrics in 2023, and the lawsuit was launched the following May. Spark uses biometrics during onboarding, but also periodic authentication.

The terms of the settlement were not publicly disclosed.

Walmart has also been sued under BIPA for using a biometric employee time and attendance system, allegedly without getting the proper consent.

Article Topics

biometric data  |  biometric identifiers  |  Biometric Information Privacy Act (BIPA)  |  biometrics  |  Coinbase  |  identity verification  |  lawsuits  |  onboarding  |  selfie biometrics