Analysis: Biometric Data Regulation in the U.S. – What Marketers Need to Know
In the digital age, personalization is king. And biometric data is quickly becoming its queen. This powerful tool is being increasingly leveraged by businesses, especially in marketing. But with great power comes great responsibility - and in this case, great privacy and security concerns.
Biometric data regulations across the United States are as diverse as they are numerous. To navigate this complex terrain, marketers need to understand the implications of these regulations to ensure compliance and maintain consumer trust.
A glance at the Jackson Lewis Biometric Map, assembled by a team of CIPP-certified attorneys and seasoned consultants, provides an eye-opening look at the state of biometric data regulation in the U.S., and its implications for today’s tech-savvy marketers.
The Biometric Patchwork
Biometric privacy laws in the U.S. are akin to a patchwork quilt, varying significantly from state to state. States like Arkansas, for example, have put comprehensive laws in place that regulate the collection, use, and storage of biometric data. In such states, biometric data is not just included in data breach notification laws, but reasonable safeguards for such personal information are mandated, and its destruction is required when no longer needed.
Yet, numerous states have no specific statutes or regulations that directly address biometric information. They lean on general data privacy laws to guard this kind of data. California, for instance, lacks a specific statute regulating biometric data but mandates consent for the collection and includes biometric data in its data breach notification law.
Interestingly, there is a burgeoning trend of states considering comprehensive biometric privacy bills, likely fueled by the increasing use of biometric data by businesses and governments. As this kind of data becomes more pervasive, the urgency to ensure robust protections are in place is palpable.
These protections, whether they are specific biometric privacy laws or more general data privacy laws, will continue to shape how businesses collect, use, and protect biometric data.
Marketing in the Age of Biometrics
So, how does this complex regulatory landscape impact marketers? Here's what you need to know:
1. Consent is Key: Clear and unequivocal consent from users is a must before collecting and using their biometric data. Transparency about what data is collected, how it's used, and how long it's retained is not just ethical – it’s essential.
2. Compliance is Crucial: If you're operating in multiple states, you need to ensure that your practices comply with all the applicable laws – which may differ significantly.
3. Security is Significant: Strong privacy and security measures to protect biometric data are not just legal requirements in some states; they're also crucial for maintaining consumer trust.
4. Personalization is Powerful: Biometric data can provide deep insights into consumer behavior, allowing marketers to develop highly personalized and targeted marketing strategies. But, balancing this power with privacy and security needs is paramount.
5. Stay Informed: Several states are considering comprehensive biometric information privacy bills. It's vital to keep an eye on these developments to remain compliant and ahead of the curve.
6. Ethical Considerations: Beyond legal compliance, there are ethical implications of using biometric data. It's crucial to ensure that such data usage benefits consumers and does not infringe on their rights or privacy.
7. Penalties Can Be Painful: The last few years have seen nearly 2,000 lawsuits alleging violations of the Biometric Information Privacy Act (BIPA), with massive settlements and judgments. Failing to comply with biometric data regulations can have severe consequences, as exemplified by the $650 million settlement by Facebook and a $35 million settlement by Snap in Illinois.
In conclusion, while biometric data presents significant opportunities for marketers, it also brings along considerable responsibilities and challenges. Marketers navigating this landscape must prioritize legal compliance, respect for consumer privacy, robust security measures, and ethical considerations.
As we continue to traverse the dynamic landscape of biometric data regulation, staying informed about legal developments and changes will be key. The age of biometric marketing is here, and it's time to step up and embrace it responsibly.
Source: Jackson Lewis Biometric Map
