Johnson & Johnson will pay US$4.7 million to settle a class-action lawsuit over its Neutrogena Skin360 facial scanning tool. The suit alleged the company broke Illinois' Biometric Information Privacy Act (BIPA) by collecting and storing consumer facial scans without proper consent.
The proposed settlement covers Illinois residents who used any version of Skin360, including Neutrogena and Neostrata Skin360, between December 9, 2019, and May 5, 2023. Around 11,000 people are expected to be part of this class, and eligible individuals will receive a pro-rata cash payment. This payment aims to compensate them for the alleged unlawful data collection.
Beyond the financial payout, Johnson & Johnson must delete all facial scans collected during the specified period. The company will also implement new procedures, including user consent forms and a clear policy for storing and destroying biometric data. The original lawsuit claimed that informed consent was not obtained and the collection and use of this sensitive information was not properly disclosed.
This settlement highlights the increasing legal risks businesses face when using AI-powered tools. For beauty professionals and salon owners, it signals a critical need for transparent data practices. Collecting and using biometric data, such as facial scans for skin analysis, requires explicit user permission and robust data management policies. Failure to do so can lead to significant legal and financial consequences.
