What happened
Clarifai deleted 3 million OkCupid user photos and associated facial recognition AI models, following an FTC investigation into 2014 data sharing. Clarifai requested the data, which OkCupid provided despite its own privacy policies prohibiting such transfers. The FTC began its probe in 2019 after a New York Times article revealed Clarifai used OkCupid images to train an AI estimating age, sex, and race. Match Group, OkCupid's owner, settled with the FTC last month, agreeing to a permanent prohibition on misrepresenting data collection practices.
Why it matters
Organisations face significant long-term regulatory and reputational costs for data privacy violations. Clarifai's deletion of 3 million photos and trained models, 12 years after initial acquisition, demonstrates the enduring impact of data misuse. The FTC's settlement with Match Group permanently prohibits misrepresenting data collection, reinforcing existing privacy regulations. This follows recent cases like wrongful arrests linked to AI facial recognition, underscoring the need for procurement teams and legal architects to scrutinise data sourcing and usage agreements, particularly for AI training, to prevent protracted legal challenges.
