Washington State Passes Law Restricting Commercial Collection, Storage And Use Of Biometric Data

by Fox Rothschild LLP
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On July 23, 2017, Washington State will become the third state (after Illinois and Texas) to statutorily restrict the collection, storage and use of biometric data for commercial purposes. The Washington legislature explained its goal in enacting Washington’s new biometrics law:

The legislature intends to require a business that collects and can attribute biometric data to a specific uniquely identified individual to disclose how it uses that biometric data, and provide notice to and obtain consent from an individual before enrolling or changing the use of that individual’s biometric identifiers in a database.

— Washington Laws of 2017, ch. 299 § 1.  (See complete text of the new law here).

Washington’s new biometrics act governs three key aspects of commercial use of biometric data:

  1. collection, including notice and consent,
  2. storage, including protection and length of time, and
  3. use, including dissemination and permitted purposes.

The law focuses on “biometric identifiers,” which it defines as

data generated by automatic measurements of an individual’s biological characteristics, such as a fingerprint, voiceprint, eye retinas, irises, or other unique biological patterns or characteristics that is used to identify a specific individual.

— Id. § 3(1).

The law excludes all photos, video or audio recordings, or information “collected, used, or stored for health care treatment, payment or operations” subject to HIPAA from the definition of “biometric identifiers.” Id.  It also expressly excludes biometric information collected for security purposes (id. § 3(4)), and does not apply to financial institutions subject to the Gramm-Leach-Bliley Act.  Id. § 5(1).  Importantly, the law applies only to biometric identifiers that are “enrolled in” a commercial database, which it explains means capturing a biometric identifier, converting it to a reference template that cannot be reconstructed into the original output image, and storing it in a database that links the biometric identifier to a specific individual.  Id. §§ 2, 3(5).

Statutory Ambiguity Creates Confusion

Unfortunately, ambiguous statutory language, combined with rapidly-advancing technology, virtually guarantees confusion in each of the three key aspects of the new law.

Regarding collection, the new law states that a company may not “enroll a biometric identifier in a database for a commercial purpose” unless it: (1) provides notice, (2) obtains consent, or (3) “provid[es] a mechanism to prevent the subsequent use of a biometric identifier for a commercial purpose.”  Id. § 2(1).  Confusingly, the law does not specify what type of “notice” is required, except that it must be “given through a procedure reasonably designed to be readily available to affected individuals,” and its adequacy will be “context-dependent.”  Id. § 2(2).

If consent is obtained, a business may sell, lease or disclose biometric data to others for commercial use.  Id. § 2(3).  Absent consent, a business may not disclose biometric data to others except in very limited circumstances listed in the statute, including in litigation, if necessary to provide a service requested by the individual or as authorized by other law. Id. However, the new law may ultimately be read by courts or regulators as including a “one disclosure” exception because it says disclosure is allowed to any third party “who contractually promises that the biometric identifier will not be further disclosed and will not be enrolled in a database for a commercial purpose” inconsistent with the new law.  Id.

The new law also governs the storage of biometric identifiers.  Any business holding biometric data “must take reasonable care to guard against unauthorized access to and acquisition of biometric identifiers that are in the possession or control of the person.”  Id. § 2(4)(a).  Moreover, businesses are barred from retaining biometric data for any longer than “reasonably necessary” to provide services, prevent fraud, or comply with a court order.  Id. § 2(4)(b).  Here too the law fails to provide certainty, e.g., it sets no bright-line time limits on retention after customer relationships end, or how to apply these rules to ongoing but intermittent customer relationships.

The Washington legislature also barred companies that collect biometric identifiers for using them for any other purpose “materially inconsistent” with the original purpose they were collected for unless they first obtain consent.  Id. § 2(5).  Confusingly, even though notice alone is enough to authorize the original collection, it is not sufficient by itself to authorize a new use.

Interestingly, the new Washington law makes a violation of its collection, storage or use requirements a violation of the Washington Consumer Protection Act (the state analog to Section 5 of the FTC Act).  Id. § 4(1).  However, it specifically excludes any private right of action under the statute and provides for enforcement solely by the Washington State Attorney General, leaving Illinois’s Biometric Information Privacy Act as the only state biometrics law authorizing private enforcement.  Id. § 4(2).

Washington’s new law was not without controversy.  Several state legislators criticized it as imprecise and pushed to more specifically detail the activities it regulates; proponents argued that its broad language was necessary to allow flexibility for future technological advances. Ultimately, the bill passed with less than unanimous approval and was signed into law by Washington’s governor in mid-May.  It takes effect on July 23, 2017.  A similar, but not identical, Washington law takes effect the same day governing the collection, storage and use of biometric identifiers by state agencies.  (See Washington Laws of 2017, ch. 306 here).

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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