A class action lawsuit accuses digital currency app Uphold HQ of violating Illinois' biometrics privacy law by allegedly improperly scanning the faces of customers who upload images of their IDs to verify their identity at sign up.
Plaintiff Jacob Czyszczon filed a class action lawsuit in Cook County Circuit Court against Uphold HQ Inc., alleging violations of the Illinois Biometric Information Privacy Act (BIPA).
According to the lawsuit, Uphold is an online cryptocurrency trading platform that lets users trade, purchase, or transfer cryptocurrency. The lawsuit claims that as part of the signup process, users are required to provide a facial geometry scan in their mobile app to verify their identity. Czyszczon claims that he signed up for the Uphold platform in 2018, and that he was required to submit his facial geometry during the signup process.
The lawsuit states that BIPA requires that prior to collecting biometric data, which includes facial geometry scans, companies must inform employees in writing that their biometric data will be collected and stored. It also states that employees must be informed in writing of the specific purpose for which the biometric data is being collected and for how long it will be stored. Additionally, BIPA requires that companies must receive a written release from the employee for the collection of their biometric data.
Czyszczon alleges that Uphold HQ Inc. invades the privacy of its users by collecting and storing their biometric data without informed consent. He further claims that the company never received a release from him allowing them to collect his biometric data, and he never authorized the company to collect his biometric data for this use.
Companies operating such online apps have become a growing target of class action lawsuits under the BIPA law in recent months. The law has already spawned thousands of class action lawsuits against companies across the country that may do business in Illinois. The law has primarily been used to target employers, seeking relatively easy settlements worth millions in many cases, as the courts have interpreted the law to allow plaintiffs to bring potentially big money claims even if they were never actually harmed by the biometric scans in any way.
Under the law, plaintiffs can demand damages of $1,000-$5,000 per violation. The Illinois Supreme Court has ruled the law should be interpreted to define "individual violations" as each time a company scans someone's biometric identifying characteristic over the preceding five years, no matter how many times the scan may have taken place previously. When multiplied across hundreds, thousands or even millions of customers, users or employees, the potential payouts can quickly climb into the millions or even billions of dollars should such a lawsuit proceed to trial, prompting nearly all companies to opt to settle as quickly as possible.
The plaintiff is seeking money damages for himself and everyone in his class action lawsuit, plus court costs, attorney fees, and other relief. He is represented in this case by attorneys Michael L. Fradin and James L. Simon, both of Ohio.