NYC businesses should be aware that the City’s new biometric privacy ordinance is now in effect…
New York City businesses should be aware that the City’s new biometric privacy ordinance is now in effect. So, if you are not yet in compliance, the time to act is now.
Under New York City’s biometric privacy ordinance, which took effect on July 9, 2021, businesses must post notices and signs at their doors informing customers how their data will be collected. Failing to comply with the notice requirement can result in costly penalties.
How Is Biometric Data Defined?
The new ordinance regulates the use of “biometric identifier information,” which is defined as “a physiological or biological characteristic that is used … 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.”
Notably, the law 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.
Who Does the New Biometric Privacy Law Apply To?
New York City’s new data privacy ordinance applies to a wide range of commercial establishments, including retail, food, and entertainment businesses. A “food and beverage” establishment is defined as one 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.” Meanwhile, a “retail” establishment is one “wherein consumer commodities are sold, displayed or offered for sale, or where services are provided to consumers at retail.” Finally, entertainment establishments are defined to include “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.”
What Is Required Under the New Law?
New York City’s biometric data privacy ordinance requires any commercial establishment that collects, retains, converts, stores or shares biometric identifier information of customers to 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.” Notably, none of the categories of biometric identifier information are excluded from this requirement.
What Are the Penalties for Violating NYC’s Biometric Data Privacy Ordinance?
Businesses should be aware that, much like the Illinois Biometric Information Privacy Act (BIPA), New York City’s 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 questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Thomas Herndon, Jr., or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
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.
Answering Your Top Questions About New York City’s Biometric Data Privacy Law
Author: Scarinci Hollenbeck, LLC
NYC businesses should be aware that the City’s new biometric privacy ordinance is now in effect…
New York City businesses should be aware that the City’s new biometric privacy ordinance is now in effect. So, if you are not yet in compliance, the time to act is now.
Under New York City’s biometric privacy ordinance, which took effect on July 9, 2021, businesses must post notices and signs at their doors informing customers how their data will be collected. Failing to comply with the notice requirement can result in costly penalties.
How Is Biometric Data Defined?
The new ordinance regulates the use of “biometric identifier information,” which is defined as “a physiological or biological characteristic that is used … 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.”
Notably, the law 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.
Who Does the New Biometric Privacy Law Apply To?
New York City’s new data privacy ordinance applies to a wide range of commercial establishments, including retail, food, and entertainment businesses. A “food and beverage” establishment is defined as one 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.” Meanwhile, a “retail” establishment is one “wherein consumer commodities are sold, displayed or offered for sale, or where services are provided to consumers at retail.” Finally, entertainment establishments are defined to include “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.”
What Is Required Under the New Law?
New York City’s biometric data privacy ordinance requires any commercial establishment that collects, retains, converts, stores or shares biometric identifier information of customers to 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.” Notably, none of the categories of biometric identifier information are excluded from this requirement.
What Are the Penalties for Violating NYC’s Biometric Data Privacy Ordinance?
Businesses should be aware that, much like the Illinois Biometric Information Privacy Act (BIPA), New York City’s 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 questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Thomas Herndon, Jr., or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
