“Biometrics” refers to the automated recognition of individuals through unique physical characteristics. While most of us are familiar with using biometric data, such as facial recognition on an iPhone, to unlock personal devices, many may not realize the extent to which this technology is employed by retailers nationwide and the reasons behind its adoption. Retailers are increasingly turning to biometric technology as a way to address shoplifting and increase revenue. Though this may prove to be a useful tactic in loss prevention and streamlining transactions, retailers must also be careful to comply with state and federal laws and regulations that surround this technology.
Although biometric technology has long been employed by venues like concert halls and stadiums to swiftly identify banned individuals, it has been gaining prevalence in retail settings. With an uptick in shoplifting losses and frequency since the pandemic, retailers are increasingly turning to biometrics to enhance security. Some utilize specialized databases that, when combined with surveillance cameras, can identify individuals based solely on their biometric traits. While some high-end retailers continue to use store staff to identify and deter known shoplifters, some heavily trafficked stores retailers have already been sued for their alleged misuse of biometric data.
Another innovative use of biometrics by retailers is aimed at streamlining transactions. For example, Amazon One palm recognition technology enables customers to expedite their purchases by scanning a credit card or their palm (linked to a card) and selecting items before walking out. Cameras strategically placed in a store can track individual selections, and the associated card is automatically charged, resulting in a significantly reduced checkout time.
It is crucial to understand that privacy laws regarding biometric technology vary from state to state and frequently change. There are many things to consider when it comes to complying with privacy laws and disclosing the collection of biometric data. Some laws require a sign to be posted stating that biometric data is being collected, but the enforcement and placement of said sign varies greatly. Several states are seeking to codify regulations relating to biometrics in an effort to standardize their practice and educate consumers about its use. In Massachusetts, for example, a biometric data privacy bill proposed in October 2023 seeks to mandate informing individuals about the collection of biometric information and obtaining their consent. Additionally, a 2023 class action suit in New York highlighted concerns about Amazon’s improper collection and storage of biometric data. Until these matters are litigated, compliance will continue to be an evolving issue.
As technology continues to advance and become more accessible, biometric data is poised to play an increasingly significant role in the retail marketplace. Retailers contemplating the use of biometric data must exercise caution, ensuring compliance with relevant laws concerning the collection and storage of such data in their jurisdiction. As the landscape evolves, staying abreast of legal developments is crucial to the responsible and ethical integration of biometrics in retail operations.