CHICAGO–A judge’s ruling here is a cautionary heads-up to credit union of another legal area credit unions will want to monitor when it comes to biometrics and security.
U.S. District Judge Joan Gottschall has rejected Shutterfly's argument that an Illinois state law, which restricts how companies can use biometric data, should not apply to the scrapbook/photobook company Shutterfly, which plaintiffs argue violated their privacy by collecting scans of their faces without their permission.
The ruling comes at the same time more devices, such as Apple’s latest iPhones, capture more biometric information, including facial scans for security purposes, rather than a password.
Illinois law restricts how companies can use biometric data, including, thumb prints, retinal images and facial data.
In Shutterfly’s case, it has a significant database of facial images it says allows customers to tag people who are included in photobooks. The company has argued it is protected by an exception to the law for photographs and that the law only applies to in-person facial scans. Judge Gottschall rejected that argument in her 19-page ruling, citing language in the law that protects "facial geometry" to conclude that the rules do apply to photos.
Under Illinois law, companies are still able to conduct scans of people's faces if they first obtain permission.