Judge approves settlement over YouTube facial data collection claims.
A federal judge has approved a $6 million class action settlement involving YouTube and claims that the platform improperly collected facial data from users in Illinois. The lawsuit focused on YouTube tools that were designed to help users manage video content, specifically a feature that blurs faces in uploaded videos. Plaintiffs argued that the tool gathered facial data without proper notice or consent, which they said violated Illinois law. The final approval brings the case to a close after several years of legal back and forth.
The lawsuit was first filed in 2022 by Illinois residents who uploaded videos to YouTube and used the Face Blur tool. The plaintiffs claimed that when the tool was applied, YouTube collected facial information that could be considered biometric data. Under Illinois law, companies must clearly explain how such data is collected and obtain permission before doing so. The lawsuit claimed that YouTube failed to meet those requirements. YouTube denied the allegations throughout the case, stating that the tool did not identify individuals or collect facial measurements in a way that could be used to recognize a person.
The case began in federal court in Illinois but was later moved to California, where YouTube is based. After months of litigation, both sides agreed to a settlement in 2025. A judge gave early approval later that year, followed by final approval in January 2026. As part of the agreement, YouTube did not admit wrongdoing. The settlement narrowed the claims to focus only on users who applied the Face Blur tool, dropping related claims involving a separate feature used to create video thumbnails.
The class covered Illinois residents who uploaded videos to YouTube and ran the Face Blur feature at any point before the court order. Early estimates suggested about 20,000 people might qualify. However, when the claims process opened, more than 340,000 claims were submitted. Attorneys for the plaintiffs raised concerns that many of those claims were not legitimate. The settlement administrator reviewed the submissions and used several methods to spot possible fraud, including looking at how quickly claimants responded to follow-up requests. In the end, only 4,501 claims were found to be valid.
Money from the settlement will be divided among several groups. About $1.5 million is set aside for attorneys’ fees, with additional funds covering litigation costs. A small payment was also approved for the class representative who helped bring the case. After expenses are deducted, approved claimants are expected to receive about $900 each. Payments are scheduled to be issued about one month after the settlement becomes final.
The case highlights the continued focus on privacy laws in Illinois, which has some of the strongest rules in the country regarding biometric data. These laws have led to a growing number of lawsuits against technology companies that use facial tools, voice systems, or fingerprint scanning. Even when companies argue that their tools are harmless or anonymous, courts have shown a willingness to closely examine how user data is handled and whether consent rules are followed.
For users, the settlement serves as a reminder that everyday features on popular platforms can raise legal questions about data use. For companies, it shows the cost of defending privacy claims, even when no wrongdoing is admitted. As technology continues to evolve, similar cases are expected to follow, especially in states with strict data protection laws. The YouTube settlement adds to a growing list of cases that reflect rising concern over how personal data is collected, stored, and used in the digital age.
Sources:
Judge approves $6 million class settlement in YouTube facial data collection case
YouTube Illinois Face Blur Privacy Class Action BIPA Settlement
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