Global: New Zealand’s Privacy Watchdog Investigates Facial Recognition, Proposes Stricter Regulations

New Zealand’s privacy watchdog is advocating for stricter regulations governing the use of biometrics and AI technologies, such as facial recognition, amid growing concerns over privacy infringements.

Privacy Commissioner Michael Webster has announced plans to introduce tougher regulations, including the publication of a draft biometrics code this autumn. Webster emphasized that legislative amendments might be necessary to safeguard sensitive personal information given the cross-cutting issues raised by biometrics.

This move follows a significant surge in privacy complaints, which rose by 79 percent in the last financial year. Among the high-profile cases prompting this scrutiny is the facial recognition technology (FRT) trials conducted by grocery cooperative Foodstuffs, intending to deploy the technology in 25 stores over six months to address retail crime.

Webster has initiated an investigation into Foodstuff’s facial recognition trial to assess its compliance with the country’s Privacy Act. The inquiry will evaluate the effectiveness of FRT in reducing retail crime and monitor the implementation of privacy and data protection measures in the participating stores.

Key aspects under scrutiny include the presence of warning signs, handling of biometric data, potential biases and accuracy issues, staff training, and customer confidence in data safety.

The investigation comprises two parts: monitoring trial compliance with the Privacy Act and assessing the impact of facial recognition on reducing harmful behavior. Webster stressed the need for clear statistical evidence to evaluate the technology’s effectiveness.

In addition to stricter regulations, the Privacy Commissioner’s Office is advocating for heavier penalties for breaches. Currently, the highest fine under the Privacy Act is approximately NZ$10,000 (US$6,019), with no criminal offense for privacy breaches.

Webster highlighted the challenges posed by limited resources, citing a grant of NZ$8.1 million (US$4.9 million) and a staff of 51. He expressed concerns about the office’s capacity to fulfill statutory responsibilities and meet public expectations with the current funding and powers.