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Norway moves to regulate AI smart glasses, eyes possible facial recognition ban

Norway's consumer watchdog has asked retailers to pause sales of AI glasses over privacy concerns, and the government is weighing a ban on real-time facial recognition.

Adrian Cole

Adrian Cole

Markets & Mining Editor, RefreshCoin

Markets
RefreshCoin · Market deskBrief #M

Norway's consumer watchdog has asked retailers to halt sales of certain AI-powered smart glasses while the government works out whether to ban real-time facial recognition outright. The Norwegian Consumer Council said the devices raise serious privacy questions, particularly around recording people in public and private spaces without consent, and that companies should not push them onto shelves until the legal picture is clear.

What exactly did Norway's consumer watchdog say?

The Norwegian Consumer Council, the country's main consumer protection body, called on retailers to stop selling the so-called "pervert glasses" until lawmakers decide how the products should be treated. The watchdog said the glasses are capable of capturing video and identifying individuals in real time, a combination that could expose ordinary people to mass surveillance without their knowledge. It also flagged that current consumer and privacy law does not clearly cover such devices.

Retailers were urged to act on a precautionary basis, meaning pull the products even if no formal ban is yet in force. The council noted that once private footage of strangers is in circulation, any harm done is hard to undo. By calling for a sales pause now, the watchdog is trying to close the gap between fast-moving consumer electronics and slower-moving privacy rules.

Why is Norway looking at a facial recognition ban now?

The government confirmed it is studying whether to introduce a general ban on real-time biometric surveillance, a category that includes live facial recognition in public spaces. Officials pointed to rising use of cameras paired with AI as the trigger, and to the difficulty of removing a person's biometric data once it has been collected and matched. A formal proposal, including possible exemptions for law enforcement, is expected to be put to public consultation.

Norway's debate fits a wider European pattern. The European Union's AI Act, agreed in 2024 and phased in through 2026, already restricts real-time remote biometric identification in publicly accessible spaces, with narrow exceptions for serious crime. Norway is not an EU member but is part of the European Economic Area and tends to align its rules with Brussels over time, which raises the pressure to act.

How do AI smart glasses tie into privacy and surveillance debates?

Smart glasses built around AI can record continuously, transcribe speech and, in some models, identify faces against a database. Regulators say this turns a personal gadget into a portable surveillance camera, with no clear way for bystanders to know they are being filmed. In Norway, existing privacy law requires consent to record people in private settings, but the rules around public spaces and biometric matching have not been fully updated for wearable AI.

Civil liberties groups across Europe have warned that face-matching technology normalizes tracking by default, and that errors in matching can wrongly tag innocent people. Lawmakers have also raised the question of who owns the biometric templates generated when a face is scanned, and whether those templates can be shared with advertisers, employers or police without the subject's knowledge.

What do the rules mean for retailers and device makers?

For retailers, the watchdog's call is not yet a binding order, but ignoring it carries legal and reputational risk. Consumer protection agencies in Norway can pursue unfair commercial practices cases, and media coverage of compliant versus non-compliant sellers tends to be sharp. Distributors that continue to stock flagged devices while the law is being written may face consumer complaints and potential fines once the rules are finalized.

For device makers, the message is that designing for the European market means building with consent and biometric limits in mind. Companies that ship products capable of live face matching without strong on-device safeguards, clear indicators when recording is active, and easy ways for bystanders to opt out will face rougher reviews from regulators. Several large tech firms have already added visible recording lights and physical shutters to glasses sold in Europe, a sign of where the market is heading.

How does Norway's approach compare with the rest of Europe?

Norway is taking a consumer-first route, starting with retailer behavior rather than waiting for a full law. Italy's data protection authority has temporarily blocked Chinese-made AI glasses over similar concerns, and Spain's data agency has opened probes into facial recognition use by private firms. France and Germany have pushed for stricter EU-wide limits through the AI Act's implementation process.

The Norwegian move adds pressure on the EEA to keep rules tight once the AI Act's biometric provisions are enforced. If Oslo goes further than Brussels, for example by banning commercial real-time facial recognition outright, it would create a higher bar that exporters would have to meet even to sell into the Norwegian market.

What should traders and companies watch next?

The first catalyst is the government's consultation paper on real-time biometric surveillance, which is expected before the end of the year. Industry and privacy groups will get a chance to comment before any draft law is presented to the Storting, Norway's parliament. A vote could come as soon as 2027 if the proposal moves quickly.

Companies selling cameras, AI chips and wearable hardware in Europe should also track how the European AI Act's biometric rules take effect through 2026 and 2027. Any Norwegian measure that runs ahead of those rules will shape product design, marketing and the kind of features that can be advertised to European consumers. The risk for non-compliant sellers is a forced recall or a sudden halt to sales, as seen with past products that ran ahead of privacy law.

For privacy-focused software vendors, including those working on consent tools, on-device face anonymization and audit logs for AI systems, Norwegian regulation could open a small but visible market. Watch for procurement notices from Norwegian municipalities and from retailers that need to retrofit their compliance procedures in the months ahead.

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