Partnership for the Good of Your Business

Legal implications of biometric data use in business

On Behalf of | Apr 5, 2024 | Business Law |

Companies use biometric data to improve security, streamline employee attendance systems and personalize customer experiences.

However, the use of biometric data also raises significant legal concerns that businesses must consider.

Understanding biometric data

Biometric data refers to any physical or behavioral characteristic that can identify an individual. This includes fingerprints, eye scans, facial recognition and voice recognition. As technology advances, businesses find new ways to use this data to enhance efficiency and security.

Privacy concerns

The primary legal concern with using biometric data in business is privacy. Unlike passwords or ID cards, individuals cannot change their biometric data. Once compromised, it poses a lifelong risk to an individual’s security and privacy. Businesses must ensure they protect this data to prevent unauthorized access and use.

Consent and disclosure

Businesses must obtain clear consent from individuals before collecting, using or storing their biometric data. This means explaining how they will use the data, who will have access to it and how long they will keep it. Transparency is important in maintaining trust and complying with legal requirements.

Handling data breaches

In the event of a data breach involving biometric data, businesses must follow specific procedures to mitigate the impact. This includes notifying affected individuals and relevant authorities promptly. Businesses must also review and strengthen their security measures to prevent future breaches.

Businesses hold the responsibility of harnessing their potential to transform operations while upholding the ethical stewardship of such sensitive information. This balance is not just a legal obligation but a cornerstone of trust and integrity in the digital age.


FindLaw Network