Privacy vs. Protection: Navigating the Ethics and Legalities of LPR in 2026

Few overused phrases make me cringe the way “In today’s data-driven world” does, so it pains me to say it…but we do live in a data-driven world.

The world generates over 402.74 million terabytes of data per day. If that number doesn’t mean anything to you, think about your phone. A typical smartphone might hold around 128 gigabytes of data. It would take roughly 8,000 smartphones to store just one terabyte. Now scale that up. 402.74 million terabytes would fill over 3 trillion smartphones with data. 

We’re creating that much data every single day. And the more data we generate, the more opportunities there are for that data to be misused, overshared, stolen, or kept longer than it should be. 

As a result, companies are under pressure to prove they are taking privacy seriously. Part of that pressure is coming from the public. People are increasingly skeptical about how their information is being collected and used. Another part comes from lawmakers who increasingly see privacy as a serious operational issue. 

But outside pressure aside, failure to protect sensitive data comes with a hefty price tag; the average global cost of a data breach is $4.4 million. 

As businesses invest in license plate recognition and other data-generating tools and capabilities, it opens the door to a lot of questions about data retention policies, surveillance ethics, and data sharing. 

What Is License Plate Recognition and Why Is It Under the Microscope?

License plate recognition systems use cameras and optical character recognition software to read and log vehicle plates. The data captured typically includes the plate number, GPS location, and a timestamp. In some configurations, systems also log vehicle type and color.

Law enforcement has used this technology for years to flag stolen vehicles, track warrant subjects, and support criminal investigations. And businesses across industries have started to deploy it for the same core reason: knowing who is coming and going reduces risk.

As adoption of license plate recognition technology has expanded, so has regulatory scrutiny. In 2025, lawmakers in at least 16 states introduced bills to regulate automated license plate readers. But only three passed. 

The quick takeaways here are that regulators are paying attention, consensus is still forming, and businesses are operating in a patchwork environment where the rules depend heavily on where they operate. All that said, businesses need to get their ducks in a row before implementing this capability.  

Data Retention Policies: How Long Is Too Long?

A key question to ask when establishing a data retention policy is: how long do you need to keep the data? Holding data for months or years without a clear purpose can increase risk and may create legal exposure. If you don’t need to store data for extended periods of time, don’t. 

Here are three things to think about when building a data retention policy: 

• Defined retention window: Set a specific timeline based on your needs. For example, thirty days covers most incident review scenarios, but ninety days may be reasonable for businesses with complex operations or ongoing investigations. 
• Automatic deletion: Manual deletion is tedious and may quickly be pushed to the bottom of too-full to-do lists. Consider building automated deletion rules into your system so old data is guaranteed to be purged at the end of your chosen retention window.
• Access logs: You should be able to see which of your employees accessed the data, when, and why. 

Surveillance Ethics Best Practices

License plate recognition captures data on every vehicle in its field of view—not just vehicles of interest. In theory that’s a good thing. Broader coverage makes the system more useful for crime prevention. But it also means collecting data on people who have done nothing wrong. 

• Collect only what you need. LPR captures plate numbers, timestamps, and location. It identifies vehicles, not individuals. Businesses that layer in facial recognition or combine plate data with purchase history take on more legal and ethical risk. 
• Be transparent about what you collect. Consider posting clear notices where LPR systems are active and publishing a written policy that explains what data is collected, how long it is retained, and who can access it. 62% of consumers are concerned about the way organizations use their personal data. Data transparency is an opportunity to build trust and stand apart. 
• Limit internal access. Not everyone on your team needs to query LPR data. Define who has access and under what conditions. 

What About Law Enforcement Data Sharing?

Sharing license plate recognition data with law enforcement can help businesses move investigations forward faster. Plate data helps officers identify which vehicles were on site, build a timeline of events, and even connect repeat activity across multiple incidents or locations. It gives them better context and a stronger starting point.

But sharing data and sharing data responsibly are two different things. There are a few guidelines to consider before sharing your data with third parties.

Put Sharing Agreements in Writing

Every instance of law enforcement data sharing should be documented. The agreement should specify what data is being shared, the purpose it can be used for, how long the receiving agency can retain it, and who within the agency has access. 

Keep a Log of Every Request

Just like you should control internal access to your LPR data, you should also document every outside request for it. Record who made the request, what data was shared, when it was provided, and what incident it was tied to. That gives your business a clear paper trail and helps prevent data from being shared more broadly than intended or making its way into the wrong hands. 

Watch for Scope Creep

A request for data tied to a specific incident is different from an ongoing arrangement to share all plate reads from a given location. Both may be appropriate in some circumstances, but both require explicit, documented agreements that define the scope and the limits.

LVT recently announced a partnership with Insight LPR, which allows us to add license plate reading capabilities to our best-in-class security platform. To learn more about this partnership, watch this webinar. To learn more about our mobile security units and how they can help you protect people, property, and assets, request a demo.