The growing reliance on digital platforms has led to massive data collection, making breaches and data privacy violations a frequent issue in the last decade. To address this, governments have introduced numerous regulations that emphasize strict measures for businesses handling personal data.
Over the years, hefty fines for data mishandling and data privacy violations have become increasingly common. This trend, particularly noticeable in the European Union since the General Data Protection Regulation (GDPR) was enforced in 2018, is shaping organizational approaches to data management. Authorities worldwide, including in the United States, are taking a stringent stance, ensuring businesses prioritize better systems and processes for protecting personal data.
In 2024, significant settlements and penalties highlighted the ongoing effort to enforce compliance and deter negligence. In the United States, class-action lawsuits against firms have added a new layer of accountability for data-related failings. Here’s a roundup of the top cases this year.
Key Settlements and Fines in 2024
1. Meta’s $1.4 Billion Settlement with Texas
In July, Meta, the parent company of Facebook, settled for $1.4 billion in Texas due to the unauthorized capture of biometric data. The lawsuit accused Meta of violating Texas laws, such as the Capture or Use of Biometric Identifier (CUBI) Act, by using facial recognition without user consent via its Tag Suggestions feature.
2. LinkedIn Fined $336 Million for Data Misuse
LinkedIn faced a $336 million fine by Ireland’s Data Protection Commission in October. It was found guilty of processing user and partner data without formal consent, breaching multiple GDPR provisions regarding fair and transparent data handling.
3. Uber’s $324 Million Fine for Mishandling Driver Records
In August, Uber received a $324 million penalty from the Dutch Data Protection Authority for storing driver information on U.S. servers without appropriate safeguards, violating European data transfer standards.
4. Meta Penalized $102 Million for Inadequate Password Security
Ireland’s Data Protection Commission fined Meta $102 million after an investigation revealed that user passwords had been stored in plaintext without adequate measures, risking unauthorized access.
5. Lehigh Valley Health Network’s $65 Million Settlement
Lehigh Valley Health Network resolved a lawsuit for $65 million after sensitive medical and personal data, including private photos, was compromised during a breach affecting its systems in Pennsylvania.
6. Marriott’s $52 Million Settlement for Data Breach
Marriott settled for $52 million with U.S. state regulators after a long-term breach of its guest reservation systems, exposing records of over 330 million individuals globally, including unencrypted payment data.
7. 23andMe Pays $30 Million to Settle Breach Lawsuit
Following a breach that exposed personal and ancestry data of more than six million users, 23andMe agreed to pay $30 million in settlements, though the firm denied direct responsibility for the hack.
8. T-Mobile’s $15.75 Million Penalty
T-Mobile settled with the Federal Communications Commission (FCC) for $15.75 million due to multiple incidents where customer data was improperly accessed over three years.
9. AT&T’s $13 Million Settlement
In January, AT&T was penalized $13 million after hackers exploited a vendor’s cloud system, exposing customer data from millions of wireless accounts.
10. $11.3 Million Fine on Insurance Firms in New York
The State of New York penalized two insurers—GEICO and Travelers—after data breaches impacted over 120,000 individuals. The case exposed failures in data protection standards, including misuse of stolen driver information.
Conclusion
The financial and reputational impact of data privacy mishandling is proving to be a wake-up call for organizations across industries. Regulators’ decisive actions underline the critical importance of transparency and robust safeguards to handle personal information responsibly.
If your organization needs expert solutions for seamless compliance and enhanced trust among customers, Zedroit’s privacy services can guide you through every stage. From data integrity measures to efficient risk management, Zedroit ensures your business not only avoids penalties but thrives in a secure environment.
