Clearview Gets $10 Million UK Fine Reversed, Now Owes Slightly Less To Governments Around The World
Here's how things went for the world's most infamous purveyor of facial recognition tech when it came to its dealings with the United Kingdom. In a word: not great.
In addition to supplying its scraped data to known human rights abusers, Clearview was found to have supplied access to a multitude of UK and US entities. At that point (early 2020), it was also making its software available to a number of retailers, suggesting the tool its CEO claimed was instrumental in fighting serious crime (CSAM, terrorism) was just as great at fighting retail theft. For some reason, an anti-human-trafficking charity headed up by author J.K. Rowling was also on the customer list obtained by Buzzfeed.
Clearview's relationship with the UK government soon soured. In December 2021, the UK government's Information Commissioner's Office (ICO) said the company had violated UK privacy laws with its non-consensual scraping of UK residents' photos and data. That initial declaration from the ICO came with a $23 million fine attached, one that was reduced to a little less than $10 million ($9.4 million) roughly six months later, accompanied by demands Clearview immediately delete all UK resident data in its possession.
This fine was one of several the company managed to obtain from foreign governments. The Italian government - citing EU privacy law violations - levied a $21 million fine. The French government came to the same conclusions and the same penalty, adding another $21 million to Clearview's European tab.
The facial recognition tech company never bothered to proclaim its innocence after being fined by the UK government. Instead, it simply stated the UK government had no power to enforce this fine because Clearview was a United States company with no physical presence in the United Kingdom.
In addition to engaging in reputational rehab on the UK front, Clearview went to court to challenge the fine levied by the UK government. And it appears to have won this round for the moment, reducing its accounts payable ledger by about $10 million, as Natasha Lomas reports for TechCrunch.
[I]n arulingissued yesterday its legal challenge to the ICO prevailed on jurisdiction grounds after the tribunal ruled the company's activities fall outside the jurisdiction of U.K. data protection law owing to an exemption related to foreign law enforcement.
Which is pretty much the argument Clearview made months ago, albeit less elegantly after it was first informed of the fine. The base argument is that Clearview is a US entity providing services to foreign entities and that it's up to its foreign customers to comply with local laws, rather than Clearview itself.
That argument worked. And it worked because it appears the ICO chose the wrong law to wield against Clearview. The UK's GDPR does not protect UK residents from actions taken by competent authorities for law enforcement purposes." (lol at that entire phrase.) Government customers of Clearview are only subject to the adopted parts of the EU's Data Protection Act post-Brexit, which means the company's (alleged) pivot to the public sector puts both its actions - and the actions of its UK law enforcement clients - outside of the reach of the GDPR.
Per the ruling, Clearview argued it's a foreign company providing its service to foreign clients, using foreign IP addresses, and in support of the public interest activities of foreign governments and government agencies, in particular in relation to their national security and criminal law enforcement functions."
That's enough to get Clearview off the hook. While the GDPR and EU privacy laws have extraterritorial provisions, they also make exceptions for law enforcement and national security interests. GDPR has more exceptions, which made it that much easier for Clearview to walk away from this penalty by claiming it only sold to entities subject to this exception.
Whether or not that's actually true has yet to be determined. And it might have made more sense for ICO to prosecute this under the parts of EU law the UK government decided to adopt after deciding it no longer wanted to be part of this particular union.
Even if the charges had stuck, it's unlikely Clearview would ever have paid the fine. According to its CEO and spokespeople, Clearview owes nothing to anyone. Whatever anyone posts publicly is fair game. And if the company wants to hoover up everything on the web that isn't nailed down, well, that's a problem for other people to be subjected to, possibly at gunpoint. Until someone can actually make something stick, all they've got is bills they can't collect and a collective GFY from one of the least ethical companies to ever get into the facial recognition business.