5
Clubs, Bars, and the Driver’s License Scanning
System
Katie R. Holloman and D. Evan Ponder
According to the United States Census Bureau (2005), nearly
4.3 million U.S. adults claim to frequent bars and nightclubs on a
weekly basis. Bars and nightclubs only constitute 2% of over fifty
different categories of leisure activities. Yet bars and nightclubs are
definitely a large part of American culture (2007 U.S. Census Bureau).
Despite the popularity of these activities to Americans, most patrons are
unaware of the underlying threat that faces them each time they visit an
establishment that scans their driver’s license. By merely having your
driver’s license scanned at a bar or club, all of the information held on
that license can be stored indefinitely in an establishment’s unsecured
databases.
Identification scanning systems, such as the Z22 Mobile ID
Scanner from Tokenworks (2002-2007), are marketed to businesses as
the foolproof way to avoid trouble with the law due to allowing
underage customers into their establishments. The Z22 “alarms if an ID
is underage or expired and helps to identify fake IDs by cross checking
the displayed name with that printed on the ID.” It also “records
transactions (into a database) so you can prove a specific ID was
checked at a specific time which is vital when establishing an
affirmative defense with state authorities” (Tokenworks Inc.). Other ID
scanners actually scan a picture of the ID and store the whole image in a
database. Every piece of information, including name, address, and
driver’s license number that is on a driver’s license is stored on a computer owned by the person who owns the scanning equipment (as
opposed to a third party). According to Tokenworks Inc., this system
“pays for itself by preventing one infraction, typically $2,000 in fines,
legal fees, and lost time (first offense). On the third offense, most states
will revoke a liquor license, effectively putting the company out of
business.” These systems are designed for use in conjunction with a
trained door person to prevent minors from participating in the twenty-
one and up nightlife.
The problem, however, is not with the scanning systems; it is
with the lack of standardized safety practices that result when there is
no law governing their use. In other words, while the systems are
extremely effective in deterring underage persons from gaining access
to restricted places, they are leaving everyone else at risk of having their
personal information used inappropriately. Information can be used
unsafely by both the business and anyone who can access the on-site
computer system where the information is stored. Some examples of
who might have access to, or be able to access, this information are:
employees of the business, patrons of the business, other businesses,
and, if the computer that houses the database has Internet access,
anyone with even the slightest of hacking abilities. None of these people
should have access to any amount of one’s personal information
without their explicit consent.
Research Question
What is the extent to which driver’s license information is
accessed, stored, protected, and used after being scanned in the night
entertainment industry? In order to answer this question, two methods
of research were undertaken: article/case study retrieval and
administering surveys.
Journals
First, a journal search for articles and case studies relating to
driver’s license privacy in the nightlife entertainment industry was
conducted. There is not a wealth of information currently available on
this subject, but some previous case studies were quite useful.
The night entertainment industry is an area in which
legislation for the protection of both establishment owners and patrons
is a gray area. There is an urgent need for laws that discern between
driver’s license scanning practices that are ethical and unethical, legal
and illegal. Although driver’s license information seems miniscule in
comparison to one’s social security number being lost or stolen, it is just
as vital. With the information from one’s driver’s license, information
relating to credit cards, residential history, car registration, driving
records, and even social security number can be attained. According to
the results of our survey, currently, the number of clubs and bars that
do not utilize driver’s license scanners outweighs the number that do by
3:1 However, businesses with these systems in place are more
commonly using them to advance their own interests rather than the
protection of their patrons.
Many businesses in the nightlife entertainment industry are
invading privacy by keeping driver’s license information for indefinite
periods of time. Federal Privacy Commissioner Karen Curtis
acknowledges a club “should keep information as long as they need it...
why do they need it for a longer period of time (than a particular
night)?” Businesses (including bars and nightclubs) that have a turnover
of $3 million or more per year must make patrons aware that they are
collecting their information, the purpose for doing so, and who else
might have access to it (Flynn, Russell 2006). But this compliance with
privacy laws does not seem to be a regular occurrence within the
nightlife entertainment industry and is proven by the lack of knowledge
portrayed in the survey results.
In New York, for example, the fight over requiring all
nightclubs to install driver’s license scanning equipment is underway.
Leading the battle is City Council Speaker Christine Quinn, who
believes the equipment is essential for deterring underage drinking and
maintaining night entertainment safety for employees and patrons.
Quinn states, “People know that when you go to an establishment
where liquor is sold, you have to prove you are of a certain age...So I
don’t believe there is any expectation of privacy as it relates to going to
a club” (Hu 2006). Although Quinn has recognized that underage
drinking is a problem within itself, scanning driver’s licenses to prevent
such illegalities while leaking or storing personal information seems
negligible.
Another example for the future of driver’s license scanning
equipment takes place in New Jersey, where legislation is being put into
place to restrict the collection of personal driver’s license information
without the owner’s consent. This was initiated after a Trenton, New
Jersey, nightclub called Kat Man Du was discovered to have stored
embedded information of 15,000 of its customer’s driver’s licenses to a
database. Ronald K. Chen, New Jersey’s public advocate states, “the
chances of it ever being completely eliminated is remote” (Randall
2007). Furthermore, if New Jersey’s legislation revision of its “Driver’s
Privacy Protection Act” passes, it will include a clause restricting the
use of collected information for marketing purposes. However, the new
legislation also includes updated licenses that include digital strips that
can display names, addresses, and physical characteristics of the holder
once scanned. This driver’s license information is commonly used for
business marketing within bars and clubs to distribute promotional
material and seek demographics (Randall 2007).
Club/Bar Manager Interviews;
Second, owners and managers of popular Denver area clubs
and bars were interviewed. The goal was to find out if they utilize
identification scanning technology to attain their patrons’ information
and, if so, how this data is stored, for how long, and for what purposes
it is used. The information uncovered from these interviews produced
some very surprising details as to how establishments use the
technology and information.
According to the local owner of Denver’s Hiccups Sports Bar
& Grille, Roxanne Armstrong, every person to enter her bar has their
driver’s license scanned. On any given night, the number of driver’s licenses scanned can range from 40 to 250. This data is then stored
indefinitely in Armstrong’s T. C. & C. identification scanning
equipment. Although Armstrong claims to use this information for no
other reason than to verify legal drinking age in order to “[resist]
los[ing] my license...it’s...my livelihood” (Armstrong 2007), the
capability to attain this private information seems effortless and the
necessity to keep this information is non-existent.
Jordan Cromwell has been an employee of Denver’s Comedy
Works for over two years. He disclosed that even though he believes
that the driver’s license information stored indefinitely on databases is
very secure, it is used primarily to verify legal drinking age and
secondarily for marketing purposes. Driver’s license information
collected on a nightly basis ranges between 100 and 300 patrons. This
information is then used to uncover demographic target markets and
potentially used to send follow-up marketing promotions directly to
patrons, without permission. Surprisingly, Cromwell compared their
driver’s license database to their existing credit card database. Comedy
Works has been storing their customer’s credit card information for up
to seven years (Cromwell 2007). Driver’s license and credit card
information are similar in their respective need to be private and secure,
yet driver’s license information is being kept indefinitely. Comedy
Works is yet another example of how venues excuse the importance of
their patrons’ privacy and safety for their own gain.
Dave, who declined to give his surname, is a manager at the
Cowboy Lounge in Denver. He says that they use a driver’s license
scanning machine, primarily because it came with the bar when it
changed ownership a couple of years ago. The Cowboy Lounge’s
machine is one that scans a picture of the entire driver’s license into a
database, instead of simply extracting the data from the magnetic strip
on the back. In the four days per week that the Cowboy Lounge is open
for business, between 800 and 1200 driver’s licenses are scanned. He
says that the database has never been cleared, acknowledging that up to
five years of personal information is in the database at the moment --
this time period spans the two owners. Dave adds that the information
has never been lost and that it is safe as a result of limited access to the
database, which is in a locked room. However, there are six managers
that have direct access to the computer. Despite these “security
measures,” it is still possible for someone to potentially hack the system
online, or even physically steal the entire database. Combine these
possibilities with the current utilization of the data by the Cowboy
Lounge (none), and the hypothetical uses of the information (which
have yet to prove to be ethically sound), and there is little doubt that
thousands of people’s information is at risk.
Dave is also a manager at the Tavern Downtown in Denver.
He says that the Tavern does not use any type of scanning equipment.
He states the reasons for not using technology to verify age as being
that his bouncers are extensively trained. In addition, he states that the
machines aren’t able to catch the subtle nuances that bouncers look for
in people’s attitudes and demeanor. He also says that physical
constraints (having wires everywhere would be a liability) limit the
establishment’s ability to house such technology. Dave says that neither
money nor respecting their customer’s privacy affect the decision to not
use scanning equipment. This interview shows a lack of knowledge about the use of the technology. According to Tokenworks Inc., the
devices are to be used in conjunction with the staff’s perceptive abilities
and professional opinions. While these machines cannot perceive
nervousness or awkwardness, which the bouncers may be able to do, it
gives the staff the ability to compare the information visible on the
license to the information embedded in the magnetic strip (Tokenworks
Inc.). This case was shown in an ABC News video case, featuring
underage drinking in New York and New Jersey, and the detrimental
effects to teens when they enter clubs at an illegal age (ABC News 2006).
Another Dave, different from the aforementioned, is the
General Manager of Lodo’s Bar and Grill in Denver. His bar does not
use any form of identification scanning equipment either. His reasons
include protecting their customer’s privacy, as well as costs, but
primarily he believes that driver’s license scanning equipment does not
“universally work as well as (manually) checking IDs.” He says the
systems are unreliable and his only concern was with pass-backs. Pass-
backs are when someone goes into the venue legitimately and then
passes their driver’s license to another person outside the bar. In this
case, the ID is real and this makes it hard to bust someone. Once again
this shows a general ignorance of the proper use of the driver’s license
scanning equipment. The bouncer should be using the scanner AND
checking IDs manually, cross-referencing both for the best results. And
most scanners have the ability to uncover pass-back schemes in their
software, audibly signaling the bouncer if the license is a repeat.
The best system we found costs $1500 before an instant $200
rebate online. This cost is minimal when compared to the costs of
getting caught with underage people in a bar. The privacy issue can be
contained easily if the information is handled in a logically responsible
manner. And once again, the equipment is intended to be used in
conjunction with a trained staff member to cover all of the inadequacies
of using the human eye and the scanning system separately.
Club/Bar Patron Surveys
Surveys were then administered in Denver to people that
participate in the nightlife. This was an excellent indicator of the
awareness level of what the identification scanning equipment does and
public feelings about the use of such technology. The data received from
these surveys showed an average age of 26 years old, in addition to
including 70% of persons surveyed being single and the remaining 30%
being married or engaged. Overall, of those surveyed, 44% were female
and 56% male. The average number of times those surveyed “go out to
a club/bar on a weekly basis” is 2.3. While only about 25% of bars and
clubs were mentioned in survey responses, 48% of survey respondents
indicated that they have visited establishments that use some form of
scanning equipment. When asked, “how does having your driver’s
license scanned make you feel?” on a scale of 1 to 10 (1 being “bad” and
10 being “good”), the average response was 5.9. This shows a general
indifference about having one’s license scanned. Furthermore, 36% of
respondents think that establishments that scan IDs are actually
retaining information while 20% of respondents think that everything
on a license is being stored. Finally, only 12% of respondents think that the establishments are using the information for things other than the
security of the venue.
Basically, this shows that while there is a general apathy about
having one’s driver’s license scanned, most people trust that the places
scanning their licenses are not saving the information past the door. Of
the people worried about their information being stored, very few
believe that it is being used outside of the scope of ensuring a safe and
legal atmosphere within the establishments. The data didn’t change
significantly between those that were single and those that were
married or engaged. Nor did it change significantly between women
and men respondents, with the exception of what the respondents think
is being stored. Of those that think excessive information is being
stored, 80% are women. This general unawareness is a sign that
businesses are not divulging what is actually happening when an ID is
scanned, and that is a gross abuse of trust. Customers expect that
because they are paying for a good or service, they should be treated as
a valuable asset to the viability of the business. These businesses think
that they are protecting themselves in the long run by complying more
with existing laws. However, when they don’t consider their customers’
safety and privacy concerns, they are sending a very strong message
that they don’t think about morality.
Therefore, the identification scanning systems are a complete
necessity, with the ability to circumvent the human errors that must
occur when bouncers check IDs based on experience and training alone,
despite the confidence of the managing staff of Lodo’s Bar and Grill and
the Tavern Downtown. But it is not ethically or morally acceptable to
allow businesses to retain personal information without explicit
permission, much less to store it for profit against their customer’s
knowledge. Also, it is definitely morally questionable to hold a patron’s
information for periods of time extending into decades.
Conclusion
The solution is to pass laws that will ban the use of this
information for marketing and promotional purposes, limit the amount
of time that businesses can store this information, and mandate full
transparency by establishments as to how and why they are using and
storing this information. Until this happens, it is only a matter of time
before we see serious infractions resulting from the lack of priority in
securing these databases. Unsecured databases, which may result in the
circulation of patron’s private driver’s license information is on the
brink of being public knowledge and under the guise of absolute
security. How would you want the law to protect your personal
information and to what extent should the law do so?
Works Cited
ABC News. 2006, September 13. “Teenage Binge Drinking” video.
Retrieved October 7, 2007 from the web site: http://www.abcnews.go.com/Video/playerIndex?id=2428649
Armstrong, Roxanne. Hiccups Sports Bar & Grille Owner: Denver, CO.
Telephone Interview. Conducted by: Holloman, Katie. 9 October.
2007.
Brydie Flynn and Mark Russell. “Privacy concerns as more clubs scan IDs”.
First edition. 3 December 2006. Sunday Age: Melbourne,
Australia.
Cromwell, Jordan. Comedy Works Employee: Denver, CO. Telephone
Interview. Conducted by: Holloman, Katie. 9 October. 2007
Dave. The Tavern Downtown/The Cowboy Lounge Manager: Denver, CO.
Telephone Interview. Conducted by: Ponder, Evan. 10 October.
2007.
Dave. Lodo’s Bar and Grill Manager: Denver, CO. Telephone Interview.
Conducted by: Ponder, Evan. 10 October. 2007
Hu, Winnie. “Clubgoers fear losing privacy in Quinn plan for cameras”.
Late edition – final. 14 August 2006. The NewYork Times: New
York, New York.
Randall, K. David. “A renewed call to protect driver’s license data”. Late
edition – final. 28 January 2007. The New York Times: New York,
New York.
Tokenworks Inc. 2002-2007. “IDVisor ID Scanner with Age Verification
Software”. Retrieved October 7, 2007 from the web site:
http://www.cardvisor.com
U.S. Census Bureau. “Statistical Abstracts of the U.S. 2007”. Section 26:
1213-1252: Arts, Entertainment, and Recreation. 2005: Table 1225.
12 September 2007. www.census.gov/prod/www/statistical-
abstract.html