The New York City Council Passes the Tenant Data Privacy Act

On April 29, 2021, the New York City Council passed the New York City Tenant Data Privacy Act (TDPA).

The TDPA establishes restrictions on the collection and use of data collected from buildings that utilize keyless entry systems, including key fobs, biometric identifiers, and electronic technologies (“smart access system”).  The TDPA requires building owners to provide tenants with a data retention and privacy policy.  The owners would be prohibited from collecting reference data (i.e. data against which authentication data is verified against) from a user for use in a smart access system except where the user expressly consents, in writing or through a mobile application, to the use of such system.

The building owners would be required to collect only the minimum amount of authentication and reference data to enable the use of the smart access system, and would be prohibited from collecting any additional biometric identifier information.

The TDPA further restricts the sharing of authentication data with third parties, and requires that such data be removed, anonymized, or destroyed within a given time.  The Act also sets requirements for retention and destruction of reference data for tenants who have vacated the building or have withdrawn authorization from the owner of the building.

In addition, the TDPA establishes a private right of action for the unlawful sale of data collected through a keyless entry system covered by the Act.

Unless vetoed by the New York City Mayor, the TDPA will take effect by the of June of 2021, provided that the building owners would not be liable for its violation until January 1, 2023, in order to allow the owners to replace and upgrade their smart access systems in compliance with the law.

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