Biometrics: New Laws and Potential Litigation Implications

COMPLIANCE & ETHICS FORUM FOR LIFE INSURERS Biometrics: New Laws and Potential Litigation Implications 2018 CEFLI Annual Conference Denver, Colorado September 10-12, 2018

Biometrics: New Laws and Potential Litigation Implications Jason Gosselin, Drinker Biddle & Reath LLP Kate Villanueva, Drinker Biddle & Reath LLP

What Is Biometrics? Biometrics is any measurable, robust, distinctive, physical characteristic or personal trait of an individual that can be used to identify or verify the identity of the individual. Measurable can be presented and converted Robust tends not to change over time Distinctive differences among the general population Identify comparison with templates in database Verify compares to prior input of individual 3

Types of Biometrics 4

Brief History of Biometrics Fingerprint classification Fingerprint classificatio n system developed developed Model for physiological components of acoustic Model for physiologica l component s of acoustic speech speech Development of automated Development face of automated face recognition recognition system 1892 1936 1960 1985 1991 1998 Proposal for identification based on iris patterns Proposal for identification based on iris patterns Patent for vascular Patent for vascular pattern recognitio n recognition FBI combined DNA index system FBI combin ed DNA index system 5

Security 6

Fraud Prevention 7

Workforce Management 8

Public Assistance Management 9

Photo Sharing 10

Gaming [Kate to insert video of her avatar here] 11

Risk Assessment Biometrics used to offer premium discounts and other rewards Vitality points - 10 points for 5000-9999 steps per day - 20 points for 10,000-14,999 steps per day 12

Underwriting? 13

Underwriting? 14

Underwriting? 15

Underwriting? 16

Illinois Biometric Information Privacy Act ( BIPA ) 740 Ill. Comp. Stat. 14/1, et seq. Requires - Informed, written consent - Publicly available retention and destruction policy - Data storage security Prohibits - Sale or trade of biometric information 17

Illinois Biometric Information Privacy Act ( BIPA ) Remedies - Actual damages or $1000 for negligent violations - Actual damages or $5000 for intentional/reckless violations - Attorneys fees and costs 18

Current Legislation 19

Proposed/Pending Legislation 20

BIPA Cases Norberg v. Shutterfly Gullen v. Facebook Patel v. Facebook McCulluough v. Smarte Carte Vigil v. Take Two Interactive Rivera v. Google Monroy v. Shutterfly Barnes v. ARYZTA Rosenbach v. Six Flags Rottner v. Palm Beach Tan 21

Article III Standing Injury in fact Traceable to the defendant s conduct Capable of redress in court Injury in fact - Invasion of legally protected interest - Concrete and particularized - Actual or imminent rather than hypothetical 22

Dismissals Article III Standing McCullough v. Smarte Carte Vigil v. Take Two Interactive 23

Statutory Standing BIPA provides cause of action to... [a]ny person aggrieved by a violation of this Act Aggrieved - Actual injury - Adverse effect - Harm Mere technical violation (i.e., lack of consent) is insufficient... for now. 24

Dismissals Statutory Standing McCullough v. Smarte Carte Vigil v. Take Two Interactive Rosenbach v. Six Flags Rottner v. Palm Beach Tan 25

Patel v. Facebook, Case No. 15-3747 (N.D. Cal.) Gullen companion case Standing - Post-Spokeo analysis - Distinguished Rosenbach (Illinois state appellate decision) - Concrete = tangible? Class certification Interlocutory appeal to 9 th Circuit 26

Choice of Law Patel v. Facebook - Terms of use Provided for California law Plaintiffs assented to terms of use - But court applied Illinois law - Restatement (Second) Conflicts of Law 187 Chosen law contrary to fundamental law of alternative state Illinois had greater interest in determination of case 27

Statutory Scope BIPA defines biometric identifier as retina or iris scan, fingerprint, voiceprint, or scan of hand or face geometry - Excludes writing samples, written signatures, photographs, human biological samples... 28

Further Thoughts 29

Questions? 30