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) in conjunction with the GDPR. Recent investigations by the Data Protection Authority have highlighted increasing scrutiny of AI systems designed to monitor biometric parameters and emotional states in commercial and workplace contexts. The matter stems from investigations launched in 2023-2024 into iris-scanning projects and algorithmic monitoring of employee performance. 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 established under the AI Act, it outlines the legal risks for enterprises. Finally, a didactic twin case illustrates the practical application of these rules 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 evolution of the sanctioning framework from the GDPR to the AI Act. It explores cases involving iris scanning and facial recognition, highlighting the explicit ban on inferring emotions in the workplace. The analysis concludes with a didactic practical case illustrating the legal consequences of deploying unauthorized Emotion AI algorithms in retail environments.
The facts
The matter arises from a series of administrative sanctioning proceedings and fact-finding investigations. According to specialized media reports, the Data Protection Authority focused its attention on international projects, such as Sam Altman's Worldcoin, which involved collecting iris scans in exchange for financial incentives.
Concurrently, in February 2024, the Authority sanctioned two logistics and environmental services companies for introducing facial recognition systems for attendance tracking. While the administrative sanctions regarding attendance tracking are now final, investigations into emotion recognition systems (Emotion AI) in call centers remain under scrutiny ahead of the full implementation of the AI Act. The primary allegations concern violations of transparency and the invalidity of free consent where there is a structural power imbalance or a financial incentive.

The rules in play
The regulatory framework relies on EU Regulation 2016/679 (GDPR), specifically Article 9, which prohibits the processing of special categories of data (including biometric data) except under narrow exceptions, and Article 22, which guarantees the right not to be subject to decisions based solely on automated processing.
This is complemented by EU Regulation 2024/1689 (AI Act): Article 5(1)(f) explicitly prohibits AI systems designed to infer emotions in the workplace and educational institutions. Article 26 establishes human oversight obligations for high-risk AI systems. Domestically, Article 2-septies of the Italian Privacy Code regulates specific safeguard measures for biometric data processing in compliance with general authorizations issued by the Data Protection Authority.
What the case law says
The established stance of the courts of legitimacy and supervisory authorities places fundamental weight on the principles of proportionality and necessity. The Authority has repeatedly clarified that processing biometric data for mere attendance tracking is unlawful where less intrusive alternatives, such as traditional keycards, are available.
With respect to employment relationships, case law confirms that employee consent does not constitute a valid legal basis owing to the inherent subordination link, which vitiates genuine freedom of choice. Furthermore, administrative jurisprudence has reaffirmed the principle of algorithmic transparency, holding that any automated decision-making process must be transparent and subject to human review to prevent discriminatory outcomes.
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Lessons for professionals
The key operational takeaways for legal practitioners are:
- Always perform a thorough DPIA (Data Protection Impact Assessment) prior to deploying computer vision technologies.
- Avoid utilizing algorithms to monitor the psychophysical or emotional states of employees, given the strict prohibition imposed by the AI Act.
- Ensure that processing operations in employment contexts do not rely solely on consent as their legal basis.
- Continuously monitor guidance issued by supervisory authorities, as technological developments frequently outpace statutory frameworks.
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
Related cases

Frequently asked questions
Is it lawful to use facial recognition for workplace attendance tracking?
Generally, no. The Data Protection Authority considers the use of facial recognition for attendance monitoring disproportionate when less intrusive alternatives, such as traditional badges or sign-in sheets, are available.
What penalties apply to companies using prohibited AI systems?
Under the AI Act, administrative fines can reach up to 35 million euros or 7% of total global annual turnover, alongside mandatory deactivation of the system and liability for civil damages.
Can an employee refuse biometric data scanning at work?
Yes. Employees have the right to object to non-essential biometric processing and cannot face adverse consequences unless processing is strictly necessary for security purposes authorized by law.
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