Lensa AI Art App Maker Wins Privacy Suit’s Shift to Arbitration

Artificial intelligence company Prisma Labs Inc. avoided a trial over a proposed class action accusing it of invading users’ privacy by storing their biometric data when a California federal judge granted its motion to compel arbitration.

Plaintiff Jack Flora accused Prisma of violating the Illinois Biometric Information Privacy Act by collecting his “facial geometry” from photos he uploaded to the company’s Lensa mobile app. But Flora agreed to settle any disputes with the company out of court during the app’s sign-up process, District Judge Charles R. Breyer ruled Tuesday.

Lensa went viral on social media after releasing its “magic avatar” ...