New York City’s biometric privacy ordinance is slated to take effect on July 9, 2021...
New York City’s biometric privacy ordinance is slated to take effect on July 9, 2021. The new law requires businesses to notify customers if they collect, retain, or share biometric information.
New York City’s Biometric Privacy Ordinance
Under New York City’s biometric privacy ordinance, any commercial establishment that collects, retains, converts, stores or shares biometric identifier information of customers must disclose such activity by placing a “clear and conspicuous” sign near all of the commercial establishment’s customer entrances. The disclosure must notify customers in “plain, simple language” that customers’ biometric identifier information is being collected, retained, converted, stored or shared, as applicable. The ordinance also makes it “unlawful to sell, lease, trade, share in exchange for anything of value or otherwise profit from the transaction of biometric identifier information.”
Applicability
New York’s City biometric privacy ordinance defines “biometric identifier information” as any “physiological or biological characteristic that is used by or on behalf of a commercial establishment, singly or in combination, to identify, or assist in identifying, an individual, including, but not limited to: (i) a retina or iris scan, (ii) a fingerprint or voiceprint, (iii) a scan of hand or face geometry, or any other identifying characteristic.”
The ordinance applies to the following commercial establishments:
Food and drink establishment: An establishment that gives or offers for sale food or beverages to the public for consumption or use on or off the premises, or on or off a pushcart, stand or vehicle.
Place of entertainment: Any privately or publicly owned and operated entertainment facility, such as a theater, stadium, arena, racetrack, museum, amusement park, observatory, or other place where attractions, performances, concerts, exhibits, athletic games or contests are held.
Retail store: An establishment wherein consumer commodities are sold, displayed or offered for sale, or where services are provided to consumers at retail.
The ordinance expressly exempts financial institutions and government agents. Additionally, it does not apply to biometric identifier information collected through photographs or video recordings, if: (i) the images or videos collected are not analyzed by software or applications that identify, or that assist with the identification of, individuals based on physiological or biological characteristics, and (ii) the images or video are not shared with, sold or leased to third-parties other than law enforcement agencies.
Private Right of Action
The biometric privacy ordinance establishes a private right of action. At least 30 days prior to initiating any action against a commercial establishment for a violation of the notice requirement, the aggrieved person must provide written notice to the commercial establishment setting forth their allegation. If, within 30 days, the commercial establishment cures the violation and provides the aggrieved person an express written statement that the violation has been cured and that no further violations shall occur, no action may be initiated against the commercial establishment. If a commercial establishment continues to violate the ordinance, the aggrieved person may initiate an action. No prior written notice is required for actions alleging a violation of the provision prohibiting the sale/sharing of biometric data.
A prevailing party may recover damages of $500 for each violation of the notice requirement, as well as for each negligent violation of the prohibition of the sale/sharing of biometric data. For each intentional or reckless violation of the provision prohibiting the sale/sharing of biometric data, damages of $5,000 may be awarded. Courts are also authorized to award a prevailing party reasonable attorneys’ fees and costs, including expert witness fees and other litigation expenses.
If you have any questions or if you would like to discuss the matter further, please contact me, Maryam Meseha, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
