A Guide for Dealers in Navigating Recent Amendments to the Illinois Biometric Information Privacy Act (BIPA)

On April 30, 2024, we published an article on "BIPA Compliance: A Guide for Vehicle Dealerships to Mitigate Litigation Risks". This article highlights recent amendments to BIPA and ways in which they will likely impact dealers.

Amendments to BIPA

SB 2929 became effective on August 2, 2024. Codified as 740 ILCS 14/10 and 14/20, this Act  introduced two pivotal changes to BIPA that dealers should be aware of:

• Limiting Per-Scan Damages: The amendments clarify that a single violation under BIPA accrues per type of violation, rather than per scan. This significantly reduces the financial exposure for dealerships.
• Electronic Consent: The amendments formalize electronic signatures as a valid means of securing biometric consent, streamlining compliance processes for businesses.

Implications for Compliance and Violations

These amendments represent a step toward mitigating BIPA’s financial impact on all businesses and especially dealerships that use extensive database technology when interfacing with customers.

By capping damages for violations, the amended BIPA weakens the financial incentive for plaintiffs and class-action suits predicated on accumulating per-scan penalties. This may lead to a reduction in litigation and provide dealers with greater leverage in settlement negotiations.

However, the amendments do not specify retroactivity. This leaves Illinois courts to decide whether these changes apply to claims that existed prior to August 2, 2024. If deemed retroactive, the amendments could substantially reduce liability for pending lawsuits. If not, their impact will be delayed until existing claims fall outside the statute of limitations.

Despite these changes, dealers still face significant risks, particularly in cases involving large datasets or systemic non-compliance. BIPA’s private right of action remains intact, and dealers must adhere to stringent compliance requirements to avoid costly litigation.

Final Thoughts

The passage of amendments to BIPA mark an important acknowledgment by the Illinois legislature of the expansive liability risks companies faced under the original BIPA. While the amendments limit potential damages and simplify consent procedures, dealers must remain vigilant in their compliance efforts. The private right of action and stringent procedural requirements still pose considerable challenges.



If you have questions about BIPA compliance or need guidance on navigating potential violations, contact Sarah Reusché at sreusche@lavellelaw.com to schedule a consultation.