EssilorLuxottica's Smart-Glasses Gamble Draws Prosecutors, a Family Revolt and a Wall Street Rethink

Paris prosecutors opened investigations into Meta glasses filming complaints; EssilorLuxottica shares are down 46% this year amid privacy scrutiny.

Paris prosecutors opened several investigations this week after receiving complaints that women had been filmed without their consent in public spaces by people wearing internet-connected eyewear. The probes land squarely on EssilorLuxottica, the Franco-Italian eyewear giant that builds the hardware for the market-leading smart glasses in partnership with Meta.

Under French law, violations of the right to one's own image carry penalties of up to two years in prison and fines of as much as EUR 45,000. The advocacy group e-Enfance had logged roughly twenty reports from affected women by early September, most of them involving footage captured with Meta glasses. This month, the Paris cybercrime unit also tested the devices for other potential offenses, including the harvesting of sensitive crypto-wallet credentials.

The legal pressure is hardly confined to France. In the UK, early operators — among them the pub chain Wetherspoon — have already imposed restrictions on smart glasses. Across the Atlantic, EssilorLuxottica faces a lawsuit targeting Meta and Luxottica of America, in which the companies are accused of having human annotators review footage of users undressing, using restrooms or handling financial data after video was uploaded to servers for AI training. Meanwhile, the European Data Protection Board is preparing a report on the privacy implications of smart glasses, due in October 2026, that could shape future EU regulation. Meta insists a non-disableable indicator light warns bystanders and that cameras shut off when the lens is covered, yet political pressure to harden safeguards at the product-design stage keeps building.

A Growth Engine Under a Cloud

The scrutiny arrives during a period of explosive expansion. According to Counterpoint Research, global shipments of AI glasses jumped 263 percent year over year in the first half of 2026, with the models sold jointly by Meta and EssilorLuxottica accounting for the bulk of the market — following seven million units moved in 2025.

Investors, though, are not pricing in a smooth ride. At a recent quote of EUR 145.20, the shares have shed 46 percent since the start of the year, leaving the company with a market capitalization of EUR 64.80 billion. Management's challenge is to build the fast-growing AI wearables business on a legally secure footing without letting reputational risk bleed into the high-margin traditional eyewear franchise.

Del Vecchio's Push Falls Flat

That balancing act is playing out against an internal power struggle. Leonardo Maria Del Vecchio called on 6 September for a strategic reset, citing the collapse in the group's market value — more than half wiped out within months. His intervention met a wall of resistance: the board unanimously reaffirmed full confidence in CEO Francesco Milleri, the management team and the existing strategy after the criticism emerged from within the Del Vecchio family ranks.

Skepticism about data glasses is not limited to the boardroom. Kepler Cheuvreux downgraded the stock to Reduce on 17 September and cut its price target to EUR 135 from EUR 244, pointing to doubts about the market potential of smart eyewear. The move weighed on sentiment, and the shares came under noticeable pressure on European trading venues after the note circulated.

Not everyone shares that gloom. Jefferies reiterated a Buy rating on 15 September with a target of EUR 250.00, and other market watchers continue to flag the company's long-term opportunities, according to media reports. The wide gap between targets — EUR 135 at the low end, EUR 250 at the high — captures the standoff: optimists lean on the group's dominant market position and established brands, while unclear prospects in the innovative segment keep others on the sidelines. The stock, at EUR 146.35 in the latest reading, is hovering close to its 52-week low of EUR 138.00.