The case, explained
Limits on the processing of biometric data for commercial and employment purposes
6 min read · Updated May 2026 · Editorial oversight: Avv. Federico Papa
According to reports in the national and specialized press, May 2026 marked a turning point in the application of EU Regulation 2024/1689 (AI Act) alongside the GDPR. Recent investigations by the Data Protection Authority have highlighted increasing strictness regarding the deployment of AI systems designed to monitor biometric parameters and emotional states in commercial and professional contexts. The matter stems from investigations launched between 2023 and 2024 into iris scanning projects and algorithmic performance monitoring of employees. This article analyzes how the European regulatory framework severely restricts the monetization of biometric data and its use for employee monitoring. By examining the Authority's enforcement trends and the prohibitions under the AI Act, we highlight the legal risks for businesses. Finally, we present a didactic twin case to illustrate the practical application of these provisions and potential defense strategies for legal practitioners.
In brief
The article examines the limits on processing biometric data for commercial and employee monitoring purposes, analyzing the shift in enforcement mechanisms from the GDPR to the AI Act. It explores cases involving iris scanning and facial recognition, emphasizing the prohibition on inferring emotional states in the workplace. The analysis concludes with a practical case study demonstrating the legal consequences of deploying unauthorized Emotion AI algorithms in retail settings.
The facts
The matter arises from a series of administrative sanctioning proceedings and fact-finding investigations. According to specialized media outlets, the Privacy Authority focused on international initiatives, such as Worldcoin founded by Sam Altman, which involved collecting iris scans in exchange for financial compensation.
Concurrently, in February 2024, the Authority penalized two companies in the logistics and environmental services sectors for deploying facial recognition systems for attendance tracking. At present, these administrative sanctions have become final, while investigations into emotion recognition systems (Emotion AI) in call centers remain under scrutiny ahead of full AI Act implementation. The core allegations involve violations of transparency duties and the impossibility of providing freely given consent in the presence of a power imbalance or monetary compensation.
The rules in play
The regulatory framework centers on EU Regulation 2016/679 (GDPR), particularly Article 9, which prohibits the processing of special categories of personal data (including biometric data) barring strict exceptions, and Article 22 regarding automated decision-making.
This framework is integrated by EU Regulation 2024/1689 (AI Act): Article 5(1)(f) explicitly prohibits AI systems intended to infer emotions of natural persons in workplace and educational environments. Furthermore, Article 26 prescribes human oversight obligations for high-risk AI systems. Domestically, Article 2-septies of the Italian Privacy Code requires biometric data processing to comply with specific safeguards approved by the Privacy Authority.
What the case law says
The established orientation of case law and supervisory authorities emphasizes the principles of proportionality, relevance, and data minimization. The Authority has repeatedly affirmed that processing biometric data purely for attendance tracking is unlawful when less intrusive alternatives, such as traditional badge systems, are available.
In employment relationships, it is settled law that employee consent cannot constitute a valid legal basis due to the structural subordination link, which impairs genuine freedom of choice. Furthermore, administrative courts have reinforced the principle of algorithmic transparency, holding that automated processing must be fully knowable, intelligible, and subject to direct human oversight to prevent discriminatory outcomes.
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Lessons for professionals
From an operational perspective, the analysis yields key recommendations for legal practitioners:
- Conduct a comprehensive DPIA (Data Protection Impact Assessment) prior to deploying any computer vision or biometric processing systems.
- Refrain from implementing algorithms aimed at monitoring employees' psychophysical or emotional states, given the strict prohibitions under the AI Act.
- Ensure that processing does not rely solely on consent within subordinate employment contexts.
- Continuously monitor guidelines issued by supervisory authorities and European bodies, as technical standards evolve rapidly alongside the regulatory framework.
References: Regolamento UE 2016/679 (GDPR) Art. 9, 22Regolamento UE 2024/1689 (AI Act) Art. 5, 26D.Lgs. 196/2003 (Codice Privacy) Art. 2-septiesOrientamenti del Garante sul divieto di riconoscimento facciale per la rilevazione delle presenze
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Frequently asked questions
Is it legal to use facial recognition to clock into the office?
Generally, no. The Privacy Authority considers facial recognition for attendance tracking to be disproportionate where less intrusive alternatives, such as company badges or traditional registration systems, are available.
What are the risks for a company using prohibited AI systems?
Under the AI Act, administrative fines can reach up to 35 million euros or 7% of global annual turnover, in addition to binding injunctions to cease processing and potential civil liabilities.
Can I refuse to have my biometric data scanned at work?
Yes, employees have the right to object to biometric processing lacking a valid legal basis and cannot face adverse consequences for doing so, except in narrow statutory exceptions justified by specific security requirements.
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