Texas Launches Privacy Probe into Meta Platforms (META) Smart Glasses

Texas Attorney General Ken Paxton has launched an investigation into Meta Platforms’ (META) AI-enabled smart glasses.

The Texas probe focuses on privacy concerns related to facial data collection and unauthorized recordings made with Meta’s artificial intelligence-powered smart glasses, said Paxton’s office in a news release. Meta’s AI glasses are equipped with cameras, speakers, and communication tools that allow users to capture and share audio and video.

Paxton’s office says the glasses feature an “always enabled” mode that continuously processes video data for Meta’s AI products. While the glasses include a small LED indicator designed to activate during audio and video recordings, the indicator can be easily hidden, raising privacy concerns, says the Texas Attorney General.

Accessing Private Data

Paxton has issued a demand to Meta to examine whether the company misrepresented its use of private consumer data in violation of Texas law. The investigation follows reports that some of Meta’s subcontractors have accessed private user information without permission.

Media reports say that Meta plans to introduce new facial recognition technology for the smart glasses through a feature called “Name Tag.” The new feature would allow Meta to collect facial geometry from individuals captured by the glasses’ cameras.

This is not the first time Paxton’s office has come after Meta Platforms. In July 2024, Paxton secured a $1.4 billion settlement with Meta over the company’s unlawful use of facial recognition technology in its products.

Is META Stock a Buy?

The stock of Meta Platforms has a consensus Strong Buy rating among 38 Wall Street analysts. That rating is based on 31 Buy and seven Hold recommendations issued in the last three months. The average META price target of $817.71 implies 36% upside from current levels.