Restaurant chain Steak 'n Shake was sued for allegedly collecting and storing customers' facial biometric data through AI-powered self-ordering kiosks without the explicit consent required by law, potentially exposing thousands of diners to privacy risks and unauthorised surveillance. 

Initiated by plaintiff Michael Massel, the lawsuit claims that the fast-food chain unlawfully collected and stored customers' facial biometric data through self-service kiosks without obtaining proper consent or providing adequate notice, as mandated by BIPA.

The kiosks, which were introduced in 2024, use facial recognition to facilitate customer orders and manage loyalty rewards. Massel's suit highlights the permanence of biometric data, such as facial geometry, which poses significant risks if compromised, as it cannot be changed like a password.

The lawsuit seeks damages of up to USD 5,000 per violation and aims to represent all Illinois customers whose biometric information was collected by Steak 'n Shake over the past five years. This could potentially lead to a settlement amounting to several million dollars.

Recent amendments to BIPA may also impact the case. These changes stipulate that multiple collections of the same biometric identifier from one individual, without proper notice and consent, will be treated as a single violation, which could reduce the financial liability for businesses involved in similar lawsuits.

Timeline ⏰

• 2020–2023. Steak 'n Shake begins a massive corporate shift from table service to a self-service model to cut costs and address financial instability.

• Early 2024. Steak 'n Shake rolls out PopID facial recognition technology to multiple locations, starting with a pilot and expanding to dozens of kiosks.

• August 28, 2024. Massel v. Steak 'n Shake, Inc. is filed in Illinois federal court.

• 2025. The case proceeds through the discovery phase alongside a wave of similar BIPA litigations against other major retailers.

• 2026. Steak 'n Shake continues its "advanced self-service" transformation while navigating the ongoing legal and financial repercussions of the biometric dispute.

Regulation ⚖️

• Biometric Information Privacy Act

Legal, regulatory 👩🏼‍⚖️

• Massel v. Steak N Shake, Inc.

News, commentary, analysis 🗞️

• https://www.biometricupdate.com/202409/steak-n-shake-face-pay-kiosks-from-popid-draw-bipa-class-action

• https://www.law360.com/cases/66d04de0762bcb1bd11b7d99

• https://kioskindustry.org/steak-n-shake-kiosks-violate-bipa/

• https://www.restaurantdive.com/news/steak-n-shake-facial-recognition-self-order-kiosks/713263/

• https://www.the-sun.com/money/11152488/steak-n-shake-customer-facial-payment-method/