Biometric Data and Legal Liabilities (Risk Management Magazine)

Biometric Data and Legal Liabilities

  Monday, June 5th, 2023 Source: Risk Management Magazine

A recent lawsuit filed against Amazon for alleged violations of New York City’s Biometric Identifier Information Law highlights new risks for businesses that use customers’ biometric data in their operations.

As similar laws begin to take effect in other jurisdictions, many other companies face potential liability. Fortunately for risk professionals, there are a variety of insurance policies that may provide a defense against such suits and potentially cover any related damages or settlements.

New York City’s Biometric Identifier Information Law requires commercial establishments that collect, retain, convert, store or share customers’ biometric identifier information to disclose those activities by placing a clear and conspicuous sign near all entrances and providing notice in plain language.

The NYC law defines ‘biometric identifier information’ as physiological or biological characteristics used by, or on behalf of, commercial establishments to identify individuals. These can include retina or iris scans, fingerprints, voiceprints, scans of hand or face geometry and any other identifying characteristics. The NYC law also prohibits commercial establishments from selling, leasing, trading, sharing or otherwise profiting from the exchange of biometric identifier information, and applies to places of entertainment, retail stores, restaurants, bars and other food and drink establishments.

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