Retailers gain ‘clarity’ around facial recognition technology rules

The Office of the Australian Information Commissioner (OAIC) has updated its guidance on the use of facial recognition technology (FRT) in retail settings following a landmark ruling involving Bunnings and the privacy implications of such technology. It is the first time the guidance has been updated since 2024 and comes with a new pathway for retailers to follow when using FRT on the public. “Entities considering using FRT should conduct a privacy impact assessment (PIA) to identify potential privacy impacts at the outset and, if proceeding with FRT, implement recommendations to manage, minimise or eliminate those impacts,” the OAIC guidance begins. Before implementing FRT, the OAIC is now asking retailers to consider the primary purpose of collecting information; whether a function or activity can be done without collecting biometric information; whether the purpose can be achieved through less intrusive means; whether alternative means have been considered; and whether the benefits outweigh the privacy risks. This assessment now has an updated, 10-step list from the OAIC. At the same time, the guidance on Australian privacy principles in law requires that information collected using FRT be obtained with valid consent, be accurate and free of bias, be subject to a clear governance process for its use, and be protected by security protocols to prevent misuse. The OAIC says that a singular risk assessment could apply to the use of FRT across multiple stores, but only when the store’s physical features and threat profiles are similar. It also places the burden to fulfil any PIA obligations on the retailer in the event of using a third-party FRT provider. “This is particularly important if the third-party is located offshore as you may be held liable for the acts of those third-parties,” the guidance continues. The Shopping Centre Council of Australia has welcomed the news and supports the use of FRT in the interests of community and worker safety. “Our industry takes the issue of privacy incredibly seriously,” said CEO Angus Nardi. “The OAIC’s updated guidance will provide the industry with a useful reference point and clarity on key privacy considerations on the potential use of FRT in shopping centre environments.” The post Retailers gain ‘clarity’ around facial recognition technology rules appeared first on Inside Retail Australia.