Illinois judge grants stay in Coinbase BIPA lawsuit, pending key appeal that could reshape biometric rules for tech platforms nationwide.
A federal judge in Illinois has granted a pause in the lawsuit against Coinbase. This lawsuit alleges violations of the state’s Biometric Information Privacy Act, or BIPA. The ruling is made after Coinbase requested the court to hold on to the case until a related appeal decision was made. In that similar instance, the Seventh Circuit is considering the application of BIPA to online systems.
Coinbase Faces BIPA Lawsuit Over Facial Recognition Practices
It is recorded that the motion to stay was granted by Judge Sharon Johnson Coleman. This has led to stalling of the case in all the legal proceedings. The stay will be utilized in such a way that it simplifies the process of law. It is also able to save on wasting labour, as the court of appeals decides on similar cases
In the interim, the plaintiffs allege that the Know Your Customer exercises that were undertaken by Coinbase violated BIPA. As they say, there was no apparent information or consent to collect facial data. Users were not informed about the capturing, storage, and sharing of facial scans among other biometric data, according to the suit. Moreover, the plaintiffs argue that Coinbase did not specify the length of time that the data would be stored and the date it would be destroyed.
Related Reading: Coinbase Sues Oregon Governor Over Withheld Lawsuit Documents | Live Bitcoin News
In line with it, the complaint lists third-party vendors who were involved in biometric processing. These include facial recognition providers like Jumio, Onfido, Au10tix and Solaris. Plaintiffs also demanded compensation under BIPA. That is up to 5000 dollars per willful violation and 1000 dollars in case of negligence. They have also demanded legal costs and injunctive relief.
The BIPA still remains as a biometric privacy law that has one of the strictest laws in the United States. It forces the confidentiality of the collection of biometric data to demand a written permission of a third party. It also requires them to make a policy on data retention and destruction that must be publicly disclosed.
Court Pause in Coinbase Case Puts Focus on BIPA Precedent
The case currently under review by the Seventh Circuit is likely to consider the application of BIPA to technology platforms. The ruling may have a significant effect on digital service providers in the State of Illinois and other states. In case it is decided to take the strict approach, it may be needed to revise the practice of many industries that use biometric tools.
Other companies have also been faced with massive BIPA cases in the past. The famous examples are Facebook and White Castle, and therefore, the stakes may even be very high. The stay provides a pause on the law in the case of Coinbase.
In the meantime, the company is being investigated because of several controversies. Those also include stand-alone litigation in the case of a data breach with bribed contractors. Coinbase will thus continue to face a legal menace even after the BIPA case was reprieved.
In conclusion, it can be said that the judge has given a stay in the biometric privacy case, the suspension of this episode of the proceedings. What is left with are the bigger implications. The ruling of the court of appeals on BIPA will emerge as a crucial precedent on how online platforms are to treat biometric data. This is happening as several firms and their users are up-looking.
