Overview
In a major win for businesses facing Biometric Information Privacy Act (“BIPA”) claims, the U.S. Court of Appeals for the Seventh Circuit recently held that the 2024 amendment limiting damages applies retroactively to cases pending at the time of enactment.
This decision significantly reduces potential exposure by limiting plaintiffs who allege multiple, biometric data collections or disclosures to a single recovery, rather than per-scan statutory damages, even for actions that predate the amendment. The ruling also undercuts the “annihilative liability” theory that fueled years of high-stakes litigation.
How BIPA Led to Astounding Exposure for Companies
In Cothron v. White Castle Sys., Inc., the Illinois Supreme Court held that claims under BIPA accrue with each scan or transmission of biometric data, rather than only at the initial collection. Although the court relied on the statute’s plain language, it openly acknowledged that this interpretation could lead to “astronomical” damages and expressly invited the General Assembly to clarify its intent regarding damages.
The Illinois legislature responded in 2024 by amending BIPA to provide that when the same biometric identifier is collected without consent from the same person, using the same method, a defendant commits only a single violation relative to that person, which would thereby limit a plaintiff or class member to “at most, one recovery.”
Notably, the 2024 amendment did not include an express retroactivity clause—prompting disputes on whether the amendment could be applied to pending cases.
Retroactive BIPA Damages Decision
On April 1, 2026, the Seventh Circuit found that the amendments to BIPA’s damages regime should be applied retroactively. The Court found that, under Illinois law, procedural or remedial amendments generally apply retroactively unless the legislature clearly says otherwise. The Court also noted that substantive amendments apply only prospectively.
Citing this well-established position, the Seventh Circuit concluded that the BIPA amendment is procedural/remedial and, therefore, found that the amended damages provision applied retroactively to lawsuits pending at the time of the amendment, as well as to past conduct.
What the Seventh Circuit’s BIPA Decision Means for Your Business
This decision is a long-awaited win for companies facing BIPA claims. For pending cases—including class actions—damages are no longer calculated for every time a fingerprint or face scan occurs. Instead, damages are limited to one recovery per method per person. This dramatically reduces potential exposure in many lawsuits and undercuts the damages theories that previously drove multi-million dollar demands. In addition, this ruling likely sounds the death-knell for plaintiffs who bring individual BIPA claims seeking hundreds of thousands of dollars on a “per-scan” theory of liability.
Practically speaking, this ruling shifts the balance in litigation. Plaintiffs may have far less leverage in settlement discussions, while defendants gain a strong basis to narrow damages and reassess litigation strategy.
More broadly, the ruling brings federal courts into alignment with the Illinois legislature’s express intent to curb excessive damages without altering BIPA’s substantive compliance obligations.
Companies with pending BIPA cases are encouraged to promptly reassess litigation strategy while remaining vigilant. While damages exposure has been significantly reduced, BIPA’s substantive compliance obligations remain fully in force. We will continue monitoring whether Illinois appellate courts address the issue and how district courts apply this ruling on remand. Please refer to our previous alerts on BIPA for a full chronology.
