FTC Targets Biometrics Deception and Unfairness Analyzed

Published Sep 19, 2023 13:15 PM

The US Federal Trade Commission (FTC) plans to scrutinize biometric offerings that engage in deception or unfairness as vendors ramp up questionable and unsubstantiated claims.

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In this report, we analyze the policy's key points and practices to ensure compliance and its implications for companies.

Related: FTC Warns: Keep Your AI Claims In Check.

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Summary ** ***'* ****** *********

*** ***'* ***** ********** ** "********* information" ******** ******** *********** * ******, including ******, ***** **********, ***.

*** *** **** **** ** **** closely ********** *** ********* - ********* and ********** - *** ****** *********.

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  • ********* **** ********* ********** ********** *** substantiate ******.
  • ***** **** ** ********* ** ********** that ********* ****-***** ***.
  • ****** *** ********* ** **** *** true **** *** ******* ***********.
  • ********* **** ** *********** ***** *** they *******/*** ********* ****.

****** ** ** *** ********** ********* substantiate ******, *** ** **** ******* tests ** ****-***** **********. ****, ** FTC ******* ** *******, **** ***** present * *********** **** ** *********.

** *** ******** *******, **** ******** the ******** ** **** ******, ********* referencing * ***** ******** ** *** enforcement ** **** ****** *** *** end ***** *** ********* ****** ****** the ***'* ******** ** ********* *** unfair *********.

FTC ********** ** ********* ***********

*** ****** ********* ******** *** ***'* first-ever ********** ** "********* ***********," ***** establishes *** ***** ** ***** ************/************ could ** ******** *** *********** *** is ******* *******:

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**** *********** "********, *** ** *** limited **":

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***** **** ********** ****** **** ******* understood ** ** **********, **** ****** recognition ******** ** ************, ******** **** identifies * ****** ***** ** ********* information, **** **** * *****:

** *** ** *******, **** * photograph ** * ******’* **** *** a ****** *********** ********, *********, *********, or ***** **** **** ****** ************ or *************** ** *** **** ******** in *** ********** ********** ********* ***********.

*** ******* ** *** ***'* ************** highlights *** ********* ** ** *** companies ** *** ***** ********* ** the **** ** ***** **** *******, store, *** *** *** **** ** information ******** ** *********** ** ***** traits. *** ***** ** ***** *********** action ***** **** ********.

Protect **** *** ****** *********

*** ****** ******** **** ** ******* consumers ** ****** **** ***** ** how ***** **** ** ****** *** used *** ******* *** ***. ***** Section * ** ****** ***, ***** ********* *** ******* ** "deceptive" ** "******" *** ***** *********** penalties.

** ******* **** ********* ** ******* depth *****, ***** **** ******** ** what *** ********** * *********.

Advertise ********** **********, ************ ******

***** *** *** ***, ** ** a ********* ******** ** **** *****, misleading, ** *************** ******/********** ***** (*) the ************ ** ********* ********** *** (ii) *** ********** *** *** ** biometric ***********.

** **** *** ***** *******, *** FTC ***** **** ********* **** *** make ***** ** *************** ********* ****** about **********'* "********, ***********, ********, ***********, fairness, ** ********." ** * ***** isn't ****, ** ** ********* ***'* substantiate ** **** ********* ********, ** should *** ****** ** ***********.

************* ** **** * "********** *****"(*.*., ********* ** ********** ********) ************* that ***** ****** *** ****. ***********, a **** ********* ** ********** **** don't ********* ****-***** *** ** *** a "********** *****."

*** ********, *** ****** ** * facial ***********-***** ****** ******* ****** ****** it ***** ****** **** * **** swipe ******. *** *******, *** **** company ***** *** ****** ** ***** that **** ******** ***** *** *** were **** ****** ********** ** *** scanner *** *** ********* ******** ** its ***. ***** ********** ** *** replicate ****-***** **********. ** ***** "********** basis," *** ******* ***** **** ** feature * ********* ********* ** *********** and ** ***** ********.

*** *******, *** *** ********** **** ** *** ********, ***.**** "********** ***** ********* ***** ******* conditions **** *** ********* *** ******** evidence ** ************** ** *********, ***** are ********* ************." ******* *** ******** based *** *********** ****** ** ***** done ** ********** **** ****'* ********* the ****-***** *** ** *** ********, the *** ********** **** *** ******* had ******** *********.

**** **** **** * ******* *****: according ** *** ***, ********** ****** "are ********* **they *** **** **** *** ******* *********** and if such limitations are not clearly stated" [emphasis added].

**** *.*. ******** **., ***.,*** *** ***** **** *.*. ******** Co., * ********** ******** ************, ******** consumers ** ******** **** *** ******** could ****** ******* **** **** **** efficacious **** **** "********* ******** **** due ** ** **** **********." ** a ***** ** **** **** *** certain ******, ********* **** ****** ******* the ***** ** *** **** ** at ***.

******, *** *** **** **** ********* must *** **** ***** ** ********** statements ***** *** **** *** ********** or ***** ********* ****. **** *********, ***., *** *** ***** **** * company ****** *********, *** ******* ** a ***** ******* *** ****** ****, "misrepresented **** ** *** *** ***** face *********** ****** *** **** ******* it ** ****** ** **." ******** ****** *. *******, *** *** ******* **** ******* deceived ********* ** ****** **** "*****’ telephone ******* ******** *** ***-****** ************** would ** **** *** ******** ******** ... **** *** ******* ****** ** adequately ******** **** **** ******* ***** also ** **** *** ******** ***********." According ** *** ***, * ******* is ********* ********* ** ** ** using ********* **** *** ******* **** are *** ******* *********.

Unfair ********** ** ********* ****

***** *** ***, * ******** ** unfair ** ** "****** ** ** likely ** ***** *********** ****** ** consumers **** ** *** ********** ********* by ********* **********" (** *.*. **** § **).

********* **** ********** *** ********** ** unfair ********. *** ********, ** ** not ****** ********** *********. *** *** notes **** **** ********** "************* *** surreptitiously ******* *********’ ********* *********** ** they ***** ** **** ******* * store," ******* **** ********* "**** ** ability ** ***** *** ********** ** use ** **** ***********." ********* ************ are **** ********* **** ** ********* services, **** ********* ********* ********. ** the ********** ** ********* **** ** not ******* *** ************* ********* ** if ** ** **** ** ********* services, *** *** **** **** ** is *** ******* ********* ** *********.

***********, ********** *** **** ***** "*********** injury ** *********," ******* ******** **** protection ******** *** ******* **** ************ against ******** ***********. ** ***** ** those ********* ******** ** *** **** two ******** ** **** ******.

Substantial ****** ******* ********** **** **********

*** ****** ******** ***** ** ******* user **** *** *** ***** ** FTC ***** ** ******** ********* ** various ****.

*** ********, ***** ********* ********** ** identify ********* ** ******** ********* *** cause ****** ** ************* ******** *********, personal ******* ***** ******** **********. ******** data ***** ****** *********** ***** ******* conditions, ********, ** ********* *********** (** recording ****** ** ********* *******, ****** of *******, ** *******/********, ************). *** FTC ** ***** **** ********* **** take ***** ** **** **** *********** secure *** ** ******* ******** *******.

*** ******** ********** ********* *********** *** cause **** ** ***** ****, ***. Large ********* ******* ********* **** *** enticing ******* *** **************, *** *** exploit ********* **** ** ********** **** accounts, *********** ***********, *** ********** *****-****** authentication *******. ****'* ********* *** ********* and *********. ******* ***********, ********* ************ sensitive *********** **** **** *** ***** secrets, *** ** ***********. ************** *** also *** ********* **** ** ******* to **** ************ ***** ** ******** locations ** ************* *********** **** ********* access ********.

*** *** *** ********** ********** ******* companies **** **** * ******** ******** to ********* *** ********** **** ****. In*** *. *****, ***., *** *** ******* **** ********* sensitive ********** ******* **** ******* ******* and ******* *** *********** **** ***** parties *********** ** ****** ********. ***** paid * $*.* ******* **********. ** another ****,** ** ******,***., *** *** ********** **** ************* "ad-injecting ********," *** ******* ** "**** reasonable ******** ** ****** *** ******* security ***** ******* ** *** ************ software," **** ******. *** *** *** not **** ******, *** ** *** order *** ******* ** ***** *** desist **** *** ****** ********* ********.

Biometrics *** ********

* *********** ******* **** ********* **** collection ** ********.

**** ****** *********** ********. ********* ***** *** ** ***** ** someone's **** ******* * ****** *********** search *** ****************** ***********, **** *** ******'* ******** or ****** ********. ******** ***** *** the *********** ** ******, ******, ** even ********** **** *** ******.

*** *** *** ********** ********** **** companies **** **** ********* ********** ** stalking. **** ** ******* ****, ***, *** *** ***** **** ******* King, * ******* ******* ********** ***** and ********, "******** ********* *** ****** data ** ******’* ******** *********, ***** use, *** ****** ********** ******* * hidden ****** ****." *** *** ****** Support **** **** ***** ******* ******** in *** ************ ********** ********.

********* ** **** ** **** ********* technologies **** ****** *********** ******** **** many ********** ******** (*.*., ********** *****), and ** *** ** ********* - if *** ***** ** ********** - for ************* ** **** *** ***** products *** ***** ****. *** ******* ****** *********** ******** ** ** require ***** ** ******** * *** of **** ****** *** *** ******* for ******* **. ********* ****** *** to ******** ********* ** **** ***** safe.

Substantial ****** ******* **** *** **************

********* *** **** ***** *********** ****** to ********* ** ******* ***** ** services **** **** **** ****** ***, or ********* ************, ******** ******.

********** *** ** *********** ** **** or ************** ******* ******/****** **********, *****, and ****** **** ************. *** ********, a***** ** *** ******** ********* ** Standards *** ********** (****)***** **** ****** *********** ********** ******* considerably **** ***** ******** "*******" **** analyzing ****** ** *********** **** ****/**** African *** **** ***** *********** **** those ** **** ******** *******. **** also ***** ******** ***** ** ***** positives ***** *****, *** *******, *** children **** ******** ** ******-**** ***. False ********* *** **** ** *********** being ******* ******* ** ******, ********* to ******** ** **************, ** ****** access ** ******** *********.

********* ************, ********** ***** ********** ****** images ** ***** **********, **** **** exhibited **** ***** ***** **** ********* individuals **** ************. **** *** **** it **** ********* *** ******** ***-***** to ****** **** ******** *** ***** services **** *** ********* ****** *******.

*** ********* ***** ************** ********* ***'* appear ** **** **** ********** ****** in *** ******* ** **********, *** the *** ** ***** **** ** plans ** **** ********** ********* ** the **** ********* ** ********* ******* other ************** ***** ** ********. ********* to *** ***, ** *********** ******* is*** *. ******** ********** *****.** **** ****, *** *** ********** that "******** ****** ***** ** ***** and ****** ********* **** ** ********* situated ***-****** ***** ********* *** ******," and ***** ******** ********** ***** $*.* million. *** ****** **** **** ********** companies ****** **** **** - **** can **** ***** ***** *** ******* that ************ ******** ***********.

********* ****** **** ***** ****** ******** that *** ******** ** ******** ** track ******** ************. **** ***** *** comment, ** *** ************ ********* ** IPVM **** ***** ****** *********** ** analyze ** ********* ** **********'* **** or ********* ** * **** ** biometric ***********:

*** ********** ** ********* *********** ***** include ****** ** ************ ** ***********’ facial ********. *** ********* **** *** term “********* *********** ************” ** ******** any ************ **** “*** ********* *********** for *** *******,”including “** ***** ** ********* *************** ** ***********, ******* **** *** ***********’ ***, ******, ** **** ** *** ***********’ *********** ******, *********, ** ********.” [******** *****]

*** *** ************ **** **** **** using ****** *********** *** **** ******** may ********** ** ****** ******** ***** Section * ** *** *** ***:

*** ********* ********** **** *** ********** will “******** [**********’] ********* **** *** perspective ** *** ********** ** ********* that ** ************ ** **** **” being ****** ** ***** *********.For ********, ** *** ** * ****** ** ************ ****** ** **** ******* ************ ** *********, *** ********** ***** **** **** **** *******. [******** *****]

** **** **** *** *** ******* in ******** ************ *** *****'* *** ** ****** recognition ** ******** **** ***** ** ethnicity*** *********** ** *** ***'* ******** of *****'* ****** **********. **'* ***** that ******** ******* ******* *** **** to ****** ******** *** ******** ***********, regardless ** ***** *** *********** *** located.

Compliance **********

**** *** ********** *** ********* ********* can *** ** **** ********* **** FTC ******.

*****, ** *** **** ** *********** claim ** *** ** *** **** a ********** *****, **** ********** ********, to **** ** **. *** *** has************ ******** ***** ***** ***************** ******* ***** ****** ** ********* *********.

******, ******* ******* ** ********** **** mirror ****-***** ***. ***** ************* ********** ** *** ******* ** reasonable ******** ********** ******.

*****, ******* ***** *** **********, ********* if * ***** ** **** **** for ******* ***********. **** ********* ************ do *** **** ** **** *** minority ***********, *** ********, *** *** guidelines ******* ********* *************** ******** *** ********** ***** ********.

******, ** *********** ***** *** *** are ***** *** ********** ********* ****. Being *********** ** *** ** *** best **** *** ********* ** ***** FTC ******. ** ********* *** ***** of ***** *** *** "********** *****" them,********* *** ***** *********.

*****, **** ********* **** **** *** implement ****** ********** ******* ***** *** hacks. ********* **** *** ****** ********* information ***** ********* *** ** **** for ********. *** *** *** *************** ******* ************* **** *** ******** ********* **** data.

*****, ** *** ****** ** *** biometric ********** **** ** ***** ** identify ** ***** *********** ********* ** specific ************. *** ***** ** **** are ***********.

Future **************

*** *** ****** ********* **** *** attempt ** ******* *** *** ** biometric ************, ***** ** ********** *** here ** ****. ** ******* ********** businesses ** ** ***** ** *** risks **** **** **** ********** *** warns ********* **** **** **** **** substantial ********* ** **** ** *** adequately ******* *********.

** ********* *** ****** *** ********* IPVM's ********** **********, ********* *** **** safely ******** ******* ******** ***** **** - **** *** ********* *** *** their ****** ****.

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