XPeng Motors has been fined 100,000 yuan (USD 15,710) by the Shanghai Municipal Administration for Market Regulation for illegally using facial recognition to collect biometric data of visitors to its stores in mainland China.
News of the contravention resulted in a torrent of criticism of the company on local social media.
XPeng had used 22 cameras to collect over 430,000 facial images over a six-month period, ostensibly to better understand its customers.
However, the company failed to inform visitors about the system, nor gain their consent, thereby violating China's Consumer Rights Protection Law.
The company says it has now deleted all 430,000 images and will comply with relevant regulations going forward.
China's Personal Information Protection Law came into effect on November 1, 2021.
Operator: XPeng Motors
Purpose: Understand customers; Improve service
Technology: Facial recognition
Opacity: Governance; Privacy