New York City proposes ban on biometric data collection in public venues

Legislation targets biometric data collection

New York City is moving to ban the collection of biometric data, including facial recognition, in public places. City Council member Shahana Hanif has introduced legislation targeting these practices, which Mayor Zohran Mamdani called “an important response to this kind of an issue.” The proposed ban would expand on the city’s existing rule, in place since 2021, that requires businesses to disclose when they collect biometric data from visitors.

MSG’s surveillance practices spark controversy

The legislation follows criticism of Madison Square Garden Entertainment (MSG) and its owner, James Dolan, for using facial recognition technology to monitor individuals both inside and outside its venues. Reports indicate that Dolan’s company maintains a database labeling some visitors—including performers—with descriptors such as “LGBTQIA,” though the reasons for these labels are unclear.

MSG’s practices came under scrutiny in 2021 when a woman was banned from Radio City Music Hall, a Dolan-owned venue, after facial recognition identified her as an attorney at a law firm involved in litigation against Dolan’s company. The woman herself was not part of the lawsuit. MSG has also sued media outlets, including WIRED, over their reporting on its surveillance practices.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This story signals a growing regulatory and public pushback against the unchecked use of biometric technologies, particularly in high-visibility industries like entertainment. For founders and operators, the developments in New York City highlight the risks of deploying facial recognition or similar tools without clear policies or safeguards. The potential for legal disputes, reputational damage, and compliance costs is rising, especially in markets with strict data protection norms. Companies using such technologies may need to revisit their practices to align with evolving legal standards and public expectations.

Key takeaways

• New York City’s proposed ban on biometric data collection could set a precedent for other cities or states, increasing compliance risks for businesses using facial recognition or similar technologies.
• The legal and reputational fallout from MSG’s surveillance practices—including lawsuits and public criticism—demonstrates the risks of opaque or discriminatory use of biometric data.
• Founders in industries like entertainment, retail, or security should assess whether their use of biometric tools aligns with current and upcoming regulations to avoid legal challenges or backlash.

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