Seventh Circuit: BIPA Damages Cap Applies Retroactively
The Seventh Circuit ruled the 2024 BIPA amendment's damages cap applies retroactively.
Why it matters: BIPA lawsuits have driven substantial liability for companies using biometric data. The court’s decision slashes potential exposure, reshaping legal strategy for privacy, compliance, and risk teams.
- The court ruled the 2024 BIPA amendment limiting damages applies to all pending cases as of April 1, 2026.
- The amendment caps damages at one recovery per person, instead of per scan or disclosure.
- This reverses three federal district court decisions that held the change was only prospective.
- The ruling cuts potential damages by millions for businesses facing BIPA litigation.
The Seventh Circuit on April 1, 2026, held that the Illinois Biometric Information Privacy Act (BIPA) amendment passed in 2024 applies to all cases pending after its enactment, dramatically reducing the scope of damages in biometric data litigation. Read the decision.
- The 2024 amendment, effective August 2, 2024, states that collecting or disclosing the same biometric data from a single individual by the same method counts as just one violation—not a separate one for each scan or disclosure.
- This clarification overturns the impact of prior rulings, notably the 2023 Illinois Supreme Court decision in Cothron v. White Castle System, Inc., which had allowed damages to accumulate with each scan, multiplying liability.
- In Clay v. Union Pacific Railroad Co., plaintiff Reginald Clay alleged about 1,500 fingerprint scans, potentially exposing the company to $7.5 million in damages under the old regime.
The Seventh Circuit found the amendment remedial: “BIPA has become a font of high-stakes litigation.” Its ruling reverses three district court decisions that had denied retroactive effect, stating, “the amendment to Section 20 of BIPA raises no constitutional concerns.”
Legal commentators call this a “watershed win for BIPA defendants in the class action space,” as the risk profile and settlement strategies for biometric privacy suits will shift markedly. More analysis.
Uncertainties remain about how this will affect existing settlements or prompt further appeals, but the immediate impact is clear: exposure for companies using fingerprint, facial, or other biometric data is sharply curtailed.
By the numbers:
- 1,500 — Fingerprint scans alleged by plaintiff Reginald Clay in one case
- $7.5 million — Potential damages per scan before amendment, now capped at one per person
- August 2, 2024 — Effective date of the BIPA amendment capping damages
Yes, but: Details on the impact for pending settlements and potential appeals are still unclear.
What's next: Watch for possible appeals or additional Illinois court guidance on applying the cap to ongoing and settled cases.