The widespread integration of facial recognition technology in China has sparked a mix of admiration for its convenience and significant concern regarding privacy. This increasing reliance on facial recognition has also driven a surge in the market valuations of companies in this sector, including prominent AI leaders like SenseTime and Megvii.
However, the industry is poised for substantial changes as the Chinese government intensifies its efforts to define regulations governing the use of this technology. This initiative builds on previous tech regulations aimed at enhancing cybersecurity, safeguarding data, and ensuring privacy protection.
On Tuesday, the Cyberspace Administration of China (CAC), the country's top internet regulator, introduced a series of proposed regulations to oversee facial recognition applications. This technology is widely utilized across both public and private domains, from facial scans for payment authentication in supermarkets to identity verification at airport boarding gates—practices now becoming more common in the United States as well.
Concerns about privacy and algorithmic bias have grown among critics of facial recognition systems. Many worry that some residential complexes are requiring facial scans as the only method for accessing buildings. Additionally, there are fears regarding the accuracy of these systems, especially their ability to identify members of minority groups, which risks unfair targeting of specific populations.
The proposed regulations aim to enhance individual rights by allowing people to opt out of facial recognition in certain situations, though with some restrictions. According to the draft, the technology's use should be confined to “specific purposes and full necessity,” necessitating individual approval or written consent.
Moreover, the rules stipulate that clear signage must be displayed in public spaces employing facial recognition. Establishments such as hotels, airports, and museums cannot pressure individuals to consent to facial scans for reasons related to “business operations” or service improvements. Furthermore, facial recognition cannot be the exclusive method for building access.
When it comes to collecting facial biometric information from individuals under 14, parental or guardian consent is mandatory. Organizations using this technology will incur higher operational costs. Entities possessing facial data on more than 10,000 individuals must register with the local CAC office, detailing the purpose for data collection and outlining their data protection strategies. Collectors are also barred from retaining facial images in their original resolution without individuals’ authorization.
If effectively implemented, these proposed regulations could bolster security in an industry that has been relatively unchecked thus far, reducing the risks of data mishandling. In recent years, China has faced several significant breaches of biometric data, exposing the sensitive information of millions.
The nation has also faced criticism for employing facial recognition to identify ethnic backgrounds, particularly concerning the Uyghur population; the new rules will not alter this practice. The proposed measures state that any entity utilizing facial recognition technology must refrain from creating profiles based on race, religion, health status, social class, or other sensitive factors unless necessary for national security and public safety reasons.
Public feedback on the proposal is being solicited until September 7.
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