Collection of MoonPay Users’ Facial Scans Violates Illinois Privacy Law, Class Action Claims

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MoonPay faces a proposed class action that alleges the crypto exchange platform secretly collects and discloses users’ facial geometry scans in violation of the Illinois Biometric Privacy Act (BIPA).

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The 11-page lawsuit explains that an individual’s facial geometry, like their fingerprint, is a “unique, permanent” biometric identifier that cannot be changed should this data be compromised or stolen. In 2008, the Illinois legislature responded to these privacy concerns by enacting the BIPA, a state law that establishes strict requirements for companies handling biometric data, the case says.

The plaintiff, an Illinois resident, claims that when setting up her MoonPay account, the app asked to verify her identity by capturing her facial geometry. Although the BIPA requires private entities to provide Illinois consumers with written notice before capturing and keeping their biometric data, the plaintiff says MoonPay “made no mention of biometric information, collection of biometric information, or storage of biometric information.”

The complaint alleges that the company also fails to inform Illinois residents how long and for what purpose their facial scans will be stored and used. In fact, the suit shares, MoonPay was statutorily required to publish “written retention schedules and guidelines” indicating when consumers’ biometric data would be permanently destroyed.

Lastly, the defendant failed to obtain written consent from Illinois residents before collecting, storing and disseminating their facial scans, the case contends.

The lawsuit looks to represent any Illinois residents who had their biometric information collected by MoonPay within the past five years.

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