ARTICLE
24 March 2025

Application Of Facial Recognition Systems In Stores From The GDPR Perspective

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Katona & Partners Attorneys at Law

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The continuous advancement of technology offers new opportunities in retail, but it also raises numerous legal issues, particularly regarding the protection of personal data.
Hungary Privacy

The continuous advancement of technology offers new opportunities in retail, but it also raises numerous legal issues, particularly regarding the protection of personal data. The use of facial recognition systems in stores – while providing an effective tool for enhancing customer experience and increasing security – can present significant data protection challenges, especially in light of the GDPR (General Data Protection Regulation).

The rules of the GDPR and the protection of personal data are essential when implementing facial recognition systems, especially if they are to be used in stores. It is crucial that data processing is carried out in accordance with GDPR requirements, and that customers' consent is obtained in every instance. The principles of data minimization and data security are fundamental to avoid potential legal issues that could arise concerning the protection of personal data.

Why is it important to consider the GDPR when applying facial recognition systems in stores?

The GDPR stipulates strict rules for the protection of personal data, which extend to the handling of data collected by facial recognition systems. Data processing must be transparent, and customers must be adequately informed about the GDPR and the purpose of facial recognition. It is particularly important for businesses to ensure that the implementation of facial recognition systems does not violate legal provisions concerning the protection of personal data.

One of the most important steps in using facial recognition systems is obtaining customers' consent for data processing. According to the GDPR, businesses must clearly inform customers about what personal data is being collected, why, and how it will be used. Clarifying the legal basis for data processing – such as voluntary consent, legitimate interests, or contractual obligations – is essential for businesses to remain GDPR-compliant. The principle of data minimization is also important, ensuring that only necessary personal data is collected and that it is handled with the highest data security measures.

Before any facial recognition system is introduced, conducting a data protection impact assessment is crucial. This step helps assess the risks associated with the system's use and determine appropriate data processing measures. The data protection impact assessment ensures that all GDPR provisions are considered when implementing facial recognition systems, thus minimizing legal risks. Businesses must ensure that their data processing policies reflect all GDPR requirements and include all relevant data protection regulations for the use of facial recognition systems.

The use of facial recognition systems not only involves compliance with the GDPR, but also ensuring customer trust. To ensure proper data processing, data minimization, and data security, businesses must provide customers with clear and understandable information. For businesses, compliance with facial recognition systems and GDPR provisions is key to protecting personal data, which contributes to long-term business success and maintaining customer trust.

The GDPR establishes very strict rules for the processing of personal data, particularly for sensitive categories such as facial images. Facial recognition systems are capable of identifying customers and collecting personal data about them, so businesses must pay close attention to ensure that the use of these systems does not violate data protection regulations.

Key GDPR requirements for the use of facial recognition systems:

  1. Legal bases for data processing: Facial recognition should only be used if a valid legal basis is available. Voluntary consent, legitimate interests, or contractual obligations are all valid bases for the system's use.
  2. Transparency and information: Businesses must ensure that customers are properly informed that facial recognition systems are being used, why the data is being processed, and what rights they have.
  3. Data minimization: GDPR requires that personal data be collected only to the extent necessary to achieve the intended purpose. In the case of facial recognition, it is essential to collect only the necessary data and avoid prolonging data retention times.
  4. Data security: Facial recognition systems must meet the highest data security standards to protect data from unauthorized access.

What can a business do to comply with GDPR requirements?

  • Data protection impact assessment: Before implementing any facial recognition system, it is essential to conduct a data protection impact assessment to evaluate the risks of data processing and determine the necessary protective measures.
  • Requesting consent: Customers' prior consent is required for the use of facial recognition. Transparent and understandable information and consent ensure lawful data processing.
  • Updating data processing policies: Businesses must ensure they have data processing policies that comply with GDPR requirements, outlining the purposes, methods, duration, and the rights of the data subjects.

Applying best practices to achieve data protection compliance

Complying with GDPR provisions is not only a legal obligation but also essential for maintaining business reputation and customer trust. The protection of personal data is particularly important in the use of facial recognition systems, as the system's operation directly affects the rights of the data subjects.

If you would like to learn more about how to apply GDPR rules in the use of facial recognition systems or need help ensuring legal compliance, feel free to contact us!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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