A recent New York court decision highlights the ongoing legal complexities surrounding the use of biometric technology by private businesses.
It stems from a lawsuit against Madison Square Garden Entertainment (MSG) that alleged that the company’s use of facial recognition to identify and ban attorneys involved in litigation against MSG violated the city’s Biometric Identifier Information Code, a law that prohibits entities from profiting from the sale or transaction of biometric data.
The judge dismissed the case, reasoning that MSG’s policy of deterring litigation through biometric identification did not constitute a direct profit from the biometric data itself.
In his ruling, Judge Lewis Kaplan of the Southern District of New York clarified that while the law prohibits directly profiting from the sale of biometric data, businesses can still benefit indirectly from it.
“The code,” Kaplan explained, “does not prohibit companies from receiving any benefit, no matter how attenuated, from the sharing of biometric data.” The judge stressed the difference between direct profit and potential benefits, and suggested that biometric data use is comparable to purchasing any other service.
MSG has defended its policy, arguing the use of facial recognition technology enhances security at its venues. The company asserts its right, as a private entity, to set terms of entry, including barring those engaged in active litigation against the firm.
Source: Sportico
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May 9, 2024 — by Ali Nassar-Smith
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