Lemonade Insurance, a popular insurtech company, has been involved in a class-action lawsuit alleging that it unlawfully collected and stored the biometric information of its customers. The lawsuit was filed in Illinois in 2021 and was settled in 2022 for $4 million.
What is the lawsuit about?
The lawsuit alleges that Lemonade violated state and federal laws by collecting biometric data from its customers without their consent. Biometric data is unique physical characteristics that can be used to identify an individual, such as fingerprints, facial scans, and voiceprints.
Lemonade reportedly collected biometric data from customers who submitted video claims. The company claims that it used the data to prevent fraud and to improve its customer service. However, the plaintiffs in the lawsuit allege that Lemonade did not obtain their consent to collect and store their biometric data.
What are the implications of the lawsuit?
The Lemonade lawsuit is a reminder that companies need to be careful about how they collect and use biometric data. Biometric data is sensitive information that can be used to identify and track individuals. Companies that collect biometric data need to obtain the consent of their customers and need to have a legitimate purpose for doing so.
The lawsuit also highlights the importance of state and federal laws that protect consumers’ biometric data. These laws require companies to obtain consent before collecting biometric data and to keep the data secure.
What are the FAQs about the Lemonade lawsuit?
Q: Who was affected by the lawsuit?
A: The lawsuit affected Lemonade policyholders in the United States who, between June 25, 2019, and May 27, 2021, provided first notice of loss through a video claim submission.
Q: How much money will be paid to settlement class members?
A: Settlement class members will receive a payment of $10 for each day that their biometric data was collected by Lemonade, up to a maximum of $100.
Q: How do I file a claim for settlement benefits?
A: To file a claim for settlement benefits, you must visit the settlement website and complete a claim form. The deadline to file a claim is August 22, 2022.
Q: What if I have questions about the settlement?
A: If you have questions about the settlement, you can contact the settlement administrator at 1-866-977-1153 (toll-free).
Q: What does the settlement mean for Lemonade customers?
A: The settlement means that Lemonade customers who were affected by the lawsuit will be compensated for the unauthorized collection of their biometric data.
Q: What has Lemonade done to address the concerns raised in the lawsuit?
A: Lemonade has ceased collecting biometric data from its customers. The company has also agreed to delete all biometric data that it previously collected.
Conclusion
The Lemonade lawsuit is a reminder that companies need to be careful about how they collect and use biometric data. Biometric data is sensitive information that can be used to identify and track individuals. Companies that collect biometric data need to obtain the consent of their customers and need to have a legitimate purpose for doing so.
The lawsuit also highlights the importance of state and federal laws that protect consumers’ biometric data. These laws require companies to obtain consent before collecting biometric data and to keep the data secure.
FAQs
Q: What is a class-action lawsuit?
A: A class-action lawsuit is a lawsuit that is filed on behalf of a group of people who have been harmed by the same defendant. Class-action lawsuits can be used to resolve disputes that would be too expensive or time-consuming for individual plaintiffs to pursue on their own.
Q: What is biometric data?
A: Biometric data is unique physical characteristics that can be used to identify an individual, such as fingerprints, facial scans, and voiceprints.
Q: Why is biometric data sensitive?
A: Biometric data is sensitive because it cannot be easily changed and can be used to identify and track individuals without their knowledge or consent.
Q: What are the risks of having my biometric data collected?
A: If your biometric data is collected, it could be used to identify you, track your movements, or access your personal information. Biometric data could also be stolen or misused by identity thieves or other criminals.
Q: What can I do to protect my biometric data?
A: You should be careful about who you share your biometric data with. You should only share your biometric data with companies that you trust
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