Nikki haley. Not a discussion on facial Recognition Technology and the privacy issues that arise as it becomes more widespread this is about one hour 20 minutes. I am Technology Reporter for political. I have a great panel so i will not bore you with an introduction. To start us off we have the ftc commissioner who was sworn in on a term that expires in 2018. She focuses on fcc issues, including privacy. She served at the commission for she focuses on f. T. C. Issues, including privacy. She would get us started off with a recap on what the ftc is working on. I am delighted for the opportunity to provide some into the three stocks on the topic of this panel, facial Recognition Technology. I will be speaking from the perspective of consumers. The mission is to prevent Business Practices that are anticompetitive, deceptive, or on fred to consumers without unduly burdening legitimate except if our be sacked if deceptive. First, i would like to note that my comments on my own and do not necessarily represent respect the lives of other ftc commissioners. I cannot miss the opportunity to quote the line, John Anderton you could, you say guinness right now. Use a guiness. Now. Companies are already deploying facial Recognition Technology in a wide variety of contexts. Some are more sophisticated than others. There has been a lot of coverage of the panasonic that pops up your content based on different members in the house will members of the household. One of the things i like to do is to be careful to make sure we are not lumping different kinds of facial Recognition Technology into one bucket, but to understand them individually. This technology can be used for facial detection. Here is a face. Locate the face in a photograph. We are locating face is to blur of them, ensuring that chad seats to include a face, and not Something Else that could be chat feeds a face, and not Something Else that could be disturbing. Companies can place cameras into digital signs to determine demographic characteristics such as age range and deliver targeted advertising based on that consumers demographic profile. It might show a 30yearold man in an advertisement for shaving cream and a woman might be shown an advertisement for perfume. One company has leveraged his ability to determine age, race, and gender to determine average of demographic data. Cameras played to the entrances at these venues. There are not images of the customer, but the way they use it are for vendors and third parties such as liquor distributors to understand the demographics of a particular vineyards customers and taylor of the specials vendors customers and tailo specialr saw to that particular and tailor their specials to that particular demographic. Consumers can make decisions about which the vendor to patronize. And even more sophisticated application is currently in use. Companies use technology to compare an individuals facial characteristics across different images to identify him or her. An image of an individual is matched with other images of the same individual. If the face of each individual can be identified by name, a previously anonymous face can be identified in and of the photograph. That raises more privacy implications. Why is this happening now. Technology is advancing. Certain technologies are in mind. Why is this coming to the forefront now . Facial Recognition Technology is or not widely used on commercial basis. We have had an improvement in the Higher Quality digital cameras and by a metric data can be more easily extract. Biometric data can be more easily extracted. If fund wraps were taken from different angles, it was difficult to match in photographs were taken from different and those, it was difficult to match them. The french angles different angles, it was difficult to match them. There are more identifiable images of privacy private images online. Approximately 2. 5 billion totals are uploaded to facebook each month. It is an amazing day the senate. Amazing data set. I am sure you are all familiar with the ability to attack people in photographs. That came to the forefront of my mind when the president nominated me to be an ftc commissioner. I thought, what photographs are they out there of three . What do i look like in that photograph i thought, what photographs are out there of three of me . Facial red stick facial Recognition Technology uses data about the size of your face and your eyes. At the ftc, we like to Pay Attention to what new issues might be coming down the road for consumers so we might have an understanding of what some of these benefits and risks might be for consumers. We have an active policymaking function at the ftc. We did a workshop in december of 2011 on facial Recognition Technology. We issued a report called to be facing facts report. It recommended best practices for companies that use facial Recognition Technology. We had the workshop and we received a number of comments and we issued this report setting up best practices. The reports is not intended to serve as a template for Law Enforcement or act as regulation for current law, but as a way to explore current issues. A lot of this was based on our march 2012 report protecting Consumer Privacy in an era of graphic change. We called upon companies to implement privacy by design and to provide consumers with simplified choices to increase transparency by providing clearer, joyner, and more standardized privacy analysis. Shorter and more standardized privacy notices. I wanted to give you the contents of a preview of what of the Technology Issues are and some of being thought cftc is bringing to bear in this area. I have not some of these thoughts the ftc is bringing to bear in this area. Later, we will take audience questions. During the rest of this panel in. We have a great group. It is one of those days. Some of us did have a guinness last night. And have the council with congresswoman lofgren. I want to start out talking with the about the ftc report. There are a few lines in the report that speaks directly to what consumers do and do not know. Consumers likely do not expect science to detect their age and gender and targeted to them at a certain time. They may not expect some of those photographs are stored by social networks. With that in mind, give us your perspective on facial recognition privacy. What do you see are the issues at play . We got a face prince of all of you coming in and we will need a dna sample on the way out. We always start out on these discussion with the quote from the minority report movie the problem was not that the technology could identify the individual, but that it came in through the door. There are Fourth Amendment concerns that matter with respect to biometrics. Face cameras remain a big debate. The private sector is capable of making new security guarantees and privacy guarantees. We have this unfortunate guarantee of being in a Homeland Security culture. We will talk about this as a yield on the line. There was a wall street journal piece about the federal government. In national id card comes up occasionally in these debates. Potentially compulsory is the cameras out in public. Public them of using technology biom informationetri collectionc is taking place. The Information Collection against a targeted individual should always be in the database and the camera may be looking for a match. You asked about expectation. Consumers do not expect they are being put in databases and track where the ago. Those questions about the Fourth Amendment and that protecting us in our homes. It should also protect us in other places. The private sector can make you those security guarantees. In a Homeland Security culture, the horse is already out of the barn. If Companies Want to keep their databases private, would they be required to share that with the federal government. Here is the new National Tourism information center. I have a lot of faith in the potential of technology to do good things. When we learn compulsorily with voluntary, we run into problems. There is a tendency to fall prey to moral panic. People forget that the issues are not entirely new. Facial recognition is photography plus math. That is not the end of the story. What we are really talking about its identification plus abuse. There are two steps. The first two steps are free speech. I believe in an open and transparent society. I think it is a good thing that people who wanted to live in and out in world for scott of the loss before photography lost. It is part of the understanding of facts around us. It is about how we understand the world. It is an opportunity for us to protect consumers. It is on the step that comes after that. It is on the uses of information. We have been talking about the uses by government. It is not just a National Security world. It is also Law Enforcement. National security uses can harm individual users. It does not deal issues. Government should be required to get a warrant before it correlates two different databases. This happened in britain when they started to correlate the data base of drivers license photos with images taken from closedcircuit televisions. That is what the Fourth Amendment comes into play. There are standards of evidence. If you are in one of those riots in britain, you might have on your cell phone charts in courts because you looked like somebody who was throwing a brick through a window. Maybe congress has a role. I am concerned about the other set of uses that were alluded to, uses by the private sector. Consumers are uncomfortable with this technology. They do not expect it is being used. It is different from saying we have to do something about this technology because it can harm people the federal trade commission rightly protect consumers against deception and unfair practices. If we stick to that basic framework, we can deal with harmful uses of facial recognition without trying to restrict the underlying photography and math that i think we should that happen freely. We should protect consumers from uses of their information to contact them for credit purposes. We have a rich body of law. We also have property law. We have ways of dealing with. Roblems like intrusions making sure companies do not place cameras in sensitive places. I would refer all of you to the professor at Arizona State law school. She has done good work on free speech and privacy. , but also more recently on the torch of confusion. She offers arguments about why having a camera to facial recognition in a bath in is a problem. We can develop a new and Exciting Technology and not fall prey to a moral panic that comes up in privacy. Talk about Consumer Expectations going back to the report that consumers thought was being collected. I wanted to talk about 70 of the thick and facial Recognition Market where people are actually affirmatively identified and then matched. 70 of that is government and Law Enforcement. This is a worldwide said the best worldwide systems. The number of investment is approximately 6 billion. You may be able to advance that number a little bit. That is for u. S. Dollars in 2012. In 2014, the number is expected to rise to 9 billion. The technology is moving to private retail for shoplifting prevention purposes. This is an important starting place. The first rule is you must tailor the biometric to the place you are working in. How it is being deployed changes how you can and that technology. I will give you a couple of examples. One example would be in kenya where biometric kit sans to create kits were sent to advance an International Identity card. It was semi voluntary. He knew the to the you can and because of the protection of freedom act, they had their first Surveillance Commission and who came out this last fall and said, i am former police officer. Absolutely no one expects this technology to be working the way it is. When we walked into wall grains or cvs walgreens or cvs if you at other nations in asia, it gets higher, especially in china. We need to be careful of the government louis. The Technology Developed by the government to the open market. This happens in the u. S. In an orderly way with a lot of rights. In other parts of the world, it is not moving in such a nice way. This is one of our great concern with facial Recognition Technology. Because of the way the internet works, the freeform commercial uses are the way back into the u. S. Through technology that is simply worldwide at this point. That is a concern. He on the king is Consumer Expectation of privacy. I have come to the the other thing is Consumer Expectation of privacy. If we base things on what consumers expect, we will have won a 1 million Consumer Privacy laws. In the area of facial recognition, consumers cannot expect what is happening right now. I do not know it is possible to educate millions of millions of consumers as would need to be educated to actually have this be meaningful. We are going to have to look hard at collection and use and all of the Different Things we have to talk about regarding information practices in order to see with the middle ground is here. There is a whole lot of bell curve in the area of policy making. There is the currency side with people have a thick use 9a teacher lithosphere of the Technology People have a diffuse, nonarticulate fear of technology. We are not going to be able to stop the deployment of this technology. The question is, what is the next step. You worked pretty extensively on facial recognition best practices, something the organization has been talking about for a while now. About that as you sketch out the perspective. I do not want to represent the hill perspective. I need to stress that anything i say on the panel should be considered my personal opinion and thoughts, not the congresswoman for him i work. The Current Technology is quite sophisticated. It is entirely possible to set up using lowcost technology a network that can identify large numbers of people and track them as they go from place to place. He can search for information including their names, shopper profiles. He same facial Recognition Systems using a existing technologies can use things not associated with your facial geometry. There are some more cutting edge ones that are already operational that can pick up on your emotional state that with the are anxious or happy. Some can pick up on your health space and can measure the blood level on your face to determine your blood pressure, your blood oxygen levels. The privacy implications are massive and consumers will want to be notified and have a choice as to whether or not they are being included in these systems. My impression is that many of the business is currently using technologies like this are giving them this choice. It is challenging by the very nature of the technology. Any official recognition discussion that fails to include this is incomplete and is doomed to irrelevancy in a matter of years. Renovation will need to be harmonized with our report and write our important rights. That is a challenging privacy issues with regard to privacy today. We worked independently onsets of regulatory self regulatory guidelines for businesses. They are quite consistent. Our recognition of the best recommendation was that you would need an individual in more than one place. You let consumers know it is happening. It is not the best solution, but it is the only solution that is out there right now it is privacy by walking away. There are Offline Retail settings. There is not that much data out there we urge businesses to respect the privacy of individuals. I have seen no literature doesnt just a good way to do that. I want to make sure we have time. Give us your perspective and a little bit about what you do. We are one of the leaders in facial recognition. The technology has really improved over the last 15 years. Our customers are primarily government. We do have commercial customers. It is largely forensic. These days, it is where all of the investment is going to. Identify the bank robber from the photograph. For the forensic context, just as there is in the automated fingerprint systems that we see on tv, the with actually were is that you often get a selection of possibilities and then there is a Human Element to arrive at a decision. He him and feel better at recognizing these patterns. There is a process in the Law Enforcement area that i am uncomfortable. I would like to add another technology to this panel. Iris and face go together. Cameras are Getting Better and better. You can film movies on an slr. There may be a message here that the company said the lawyers. We are keen on having the rules because it is in our interest not to have this technology become anathema to our customers. We want to continue to profit. The rules in place can work. One example is something we are all aware of, wiretapping. Here is the Fourth Amendment and here is the process that the d. O. J. Where