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Disputes from the use of biometric data in commercial transactions

On Behalf of | Jan 14, 2025 | Commercial Disputes |

Businesses now often use biometric data, such as fingerprints, face scans and eye scans, to check who people are. This tech makes things safer and more manageable but raises significant legal issues that can lead to commercial disputes 

Legal matters

New York has special rules about using biometric data. The New York City Biometric Identifier Information Law says businesses must tell customers if they collect biometric data and forbids the sale of such data. Not following these rules can lead to legal fights and hefty fines.  

Common problems

Several types of problems can come from using biometric data in business:  

  • Privacy issues: Businesses must obtain the customers’ approval before collecting biometric data. Failure to do so can lead to privacy claims.  
  • Data breaches: Biometric data is highly sensitive. A data breach can cause lawsuits for not keeping this data safe enough.  
  • Misuse of data: Under New York’s strict privacy laws, using or sharing biometric data without authorization can lead to lawsuits.  

Knowing about these possible problems is crucial for businesses to avoid legal trouble.  

Lowering legal risks

To lower risks with biometric data, businesses should:  

  • Get informed consent: Always get explicit and informed consent from people before collecting their biometric data.  
  • Use strong security measures: Use encryption and other security technologies to keep biometric data safe.  
  • Perform regular audits: Regular audits ensure you follow New York laws and update as needed.  

Doing these things can lower the chance of problems and build customer trust.  

Getting legal help

Using biometric data in business has many advantages and significant legal duties. Knowing and dealing with these issues allows you to use biometric tech while lowering legal risks and maintaining your business’s good name. Getting legal guidance assures you avoid legal trouble while ensuring your business thrives.