Biometric Data Use Expands: How to Protect Consumer Privacy, Prevent Lawsuits
More companies in the U.S. and Canada are incorporating the use of biometric data into their operations, raising unease for some consumers, and prompting a number of class-action lawsuits over information that may be collected improperly. Airports are among the latest industries to join the trend, with CBC News recently reporting on airlines like Air Canada and various airports implementing facial recognition technology for services such as check-in and security, prompting concerns over privacy and potential biases.
“It really is kind of a double-edged sword,” said Derek Kilmer , Associate Managing Director, Broker, Professional Liability, Burns & Wilcox , Farmington Hills, Michigan. “The technology obviously helps the companies with security, especially with the pace at which we expect to travel, but with that comes different information that companies have access to.”
Obtaining consent to collect this data is imperative, Kilmer said. In February, railroad company BNSF agreed to pay $75 million to settle a class-action lawsuit claiming it violated Illinois’ Biometric Information Privacy Act (BIPA) by collecting fingerprint scans of drivers using automated gate systems. Also last month, fast-food chain Wendy’s settled a class-action lawsuit alleging violations of the same state law when it collected employees’ fingerprints without their consent; as part of the settlement, the company will pay some of its current and former employees $575 each.
Many of these lawsuits come down to the companies “not following the law” on biometric data use, said Allison Arnold, RPLU, CPLP , Broker, Professional Liability, Burns & Wilcox, Indianapolis, Indiana. Although Cyber and Privacy Liability Insurance often excludes biometric data claims, this type of litigation could be prevented by utilizing the cybersecurity expertise that comes with these policies, she said.
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