The legal debate over the use of biometric data entered a new forum with a lawsuit against Amazon for alleged violations of New York City’s new biometric-privacy statute. In an interview with InsuranceNewsNet, Senior Managing Associate Tae Andrews examined coverage implications for this case and others as jury awards cross the billion-dollar threshold.
According to the lawsuit, Amazon did not notify its Amazon Go NYC customers in NYC that they were being monitored by technology that tracks their bodies’ shapes and sizes, as well as their palm prints.
“Companies are using a lot of biometric data and what we’ve also seen is a rise in statutes enacted by various states and municipalities to protect that biometric data,” Andrews said. However, he noted that “many different types of policies can cover or potentially cover biometric data privacy claims.”
Also, in February 2023, the Illinois Supreme Court ruled that fast food chain White Castle System Inc. must face claims that it repeatedly scanned fingerprints of nearly 9,500 employees without their consent, which the company says could cost it more than $17 billion.
“We’re talking about incredibly high potential damage,” Andrews commented. “It’s a very significant source of potential exposure.”
Read the full story here.