I don't see any evidence that this is a "facial recognition system."

It's likely hard to legislate against software that attempts to detect if there is a person, what their expression is, and guesses at their gender.

You could imagine that job being done by a person (just noting how many people stopped at the advertisement, and what their expression was). I don't think there's really a way to make that illegal.

I suppose I think it's something that people should be aware of, though.