OkCupid to pay no fee to FTC for allegedly sharing 2M+ user photos with third-party AI company

OkCupid has settled a lawsuit with the Federal Trade Commission (FTC) regarding allegations of sharing user data without consent. The case dates back to 2014 when the FTC accused OkCupid, a subsidiary of Match Group, of improperly sharing personal user data, including photos and location information, with a third-party company named Clarifai. Clarifai specializes in AI-powered software for applications such as facial recognition and content moderation. The FTC claimed that OkCupid shared nearly three million user photos with Clarifai, which it categorized as an "unrelated third party" not covered under OkCupid's privacy policy. The FTC's complaint highlighted that OkCupid's privacy policy at the time stated that the company would not share personal information with others, except in specific circumstances involving service providers and business partners. However, the lawsuit alleged that OkCupid failed to inform its users about this data sharing and did not provide them with an opportunity to consent to it. As part of the settlement, OkCupid and Match Group did not admit any wrongdoing but agreed to refrain from making similar misrepresentations in the future. Despite the settlement, OkCupid will not pay any fees to the FTC. The resolution of this case underscores ongoing concerns about user privacy and data protection practices in the tech industry, particularly concerning how companies handle personal information without user consent. The FTC's actions reflect its commitment to enforcing privacy regulations and protecting consumers from deceptive practices.