CUSTOMIZED REAL ESTATE SERVICES
biometric identifier information law prohibiting NYC businesses that “ collect , retain , convert , store , or share biometric identifier information of customers ” from profiting off the information ; businesses must also disclose their FRT use to customers with a “ clear and conspicuous sign .” The law provides a private right of action for customers , but it also includes a cure provision for businesses to remedy certain violations . For instance , if a business violates the law ’ s disclosure requirement , customers can notify the business of the alleged violation . The business then has 30 days to “ cure ” the violation before the customer can take legal action .
Additionally , early this year , New York City Council members have introduced two bills that would ban businesses and residential buildings from using facial recognition technology to identify customers or tenants without their consent . And , New York City has had some controversy around the use of FRT for commercial purposes . Specifically , the world-famous Madison Square Garden ( and its owners ) are alleged , without denial , to have used FRT to prohibit certain individuals from attending events being held at the venue . That is , Madison Square Garden has used this technology to identify lawyers from law firms who have filed lawsuits against the company from entering the facility despite their lawful purchase of tickets for an event . It will be interesting to see how this plays out in the courts and whether the justice system will concur that this is a legitimate use of FTR .
No different than Madison Square Garden , FRT creates many possibilities to gather information that can be used for numerous purposes for businesses such as Planet Fitness ®. If this is a strategy that is used , operators will need to be sensitive to not only laws directly related to FRT but also other laws such as privacy laws or laws against discrimination that may also be implicated by this
rapidly advancing technology . Indeed , the Planet Fitness franchise agreement addresses complying with all laws , requires approval for implementing processes in connection with operations and put the onus on franchisees to protect certain data , but maintains control over the “ ownership ” of said data . As such , there are significant considerations that should be taken into account if FRT is a potential data-gathering strategy for any purpose in connection with the operation of your business .
Additionally , there remains significant risk from consumers of potential lawsuits against business owners for collecting data wrongfully or mishandling the data that has been collected . Indeed , companies such as Amazon , Kroger and Walgreens have all been sued over the last several years for claims related to collecting customer data related to FRT and other biometric data .
The laws in this area are going to continue to evolve at a dramatic pace , and so is the use of these types of technology , especially as it relates to gathering marketing data . As such , it is critical to be mindful of both local and national laws that impact the use of FRT or similar types of technology . Moreover , and assuming the law permits it , this type of technology will likely soon be common if not standard in the marketplace , so educating yourself on the benefits , risks and how it works may be critical to your future success . G
Justin M . Klein is a franchise and business attorney and a partner with the nationally recognized franchise law firm of Marks & Klein , which represents Planet Fitness franchise operators throughout the United States and internationally . You can contact Klein at justin @ marksklein . com .
CUSTOMIZED REAL ESTATE SERVICES
Travis Alvarado travis @ retailregroup . com ( 832 ) 655-8215
Kayla O ' Connor kayla @ retailregroup . com ( 831 ) 320-8234
Real Estate Portfolio Services Lease Restructure & Renewal Remodel Capital Contribution Lease Termination Disposition & Sale Leasebacks
Growth & Development Services Strategic Growth & Market Planning Build to Suit Development
GearedUp | 2023 Issue 3
67