Facial Recognition
by Wynn Williams
last updated 11/09/2024
A draft Privacy Code covering biometric tech could impact franchises, explains Katrina Hammon
Biometrics is a hot topic, with the recent release of the draft Biometric Processing Privacy Code. This reflects the fact that the Privacy Commissioner is keeping an eye on the growing interest in adopting facial recognition technology among businesses. Biometrics analyse people’s physical and behavioural features to recognise who someone is or to determine other things about them.
Benefits and risks
In retail businesses in particular, facial recognition technology is being used to prevent retail crime and protect staff and customers. The technology works by matching, in real time, the faces of people who enter business premises against the business’s record of offenders. We have most notably seen this in action with Foodstuffs North Island’s ongoing facial recognition trial.

Other benefits include the ability to personalise customer experience by recognising repeat customers, or enhance operational efficiency by monitoring customer traffic and behaviour to improve store layouts and manage queues.
While there are benefits, there are concerns around whether these are proportionate to the ability of businesses to obtain biometric information. Businesses will need to demonstrate that this is being obtained in a transparent way, and they are able to mitigate inherent risks that come with this technology. This includes potential negative consequences such as profiling, inaccuracy of information and bias.
What’s next?
Franchise businesses will naturally be interested in the benefits that these technologies can offer. Rolling them out across a network will warrant careful planning and consideration of the Code (should it come into effect) and other guidelines from the Privacy Commissioner.
To prepare, franchisors can:
- Weigh up the benefits of using biometric technologies in your brand’s network and ensure they outweigh the privacy risks
- Consider how you will notify individuals that biometric information in being collected (ie. will there be clear signage at the entrance?)
- Ensure that there are safeguards and controls in place to prevent any bias or accuracy issues
- Ensure there are measures in place to ensure consistency of use of biometric technologies across the network
- Ensure that the network’s privacy policies are up to date and outline the use and purpose of biometric technologies in the business
- Provide staff training and ensure that members of the network have a strong understanding of the privacy risks involved
Start now
Now’s the time to consider the implications of using biometric technologies and revisit your franchise network’s privacy practices.
Wynn Williams can help address your questions to prevent harm to a franchised brand or any individuals providing personal information, in this increasingly regulated digital age.
See this advertorial on page 45 of Franchise New Zealand magazine Year 33 Issue 2
Contact details for Wynn Williams
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