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Strange. That seems to go against the Home Office’s own Code of Practice
“13 3.2.2 Any proposed deployment that includes audio recording in a public place is likely to require a strong justification of necessity to establish its proportionality. There is a strong presumption that a surveillance camera system must not be used to record conversations as this is highly intrusive and unlikely to be justified”
I hope they’ve taken good legal advice.
There are probably technical things they can do to reduce the risk, such as only actually record audio above a set audio pressure level.