You're not wrong. A single class action lawsuit would destroy Rest as a going concern, assuming there were enough false-positives generated to be an issue.
(Rest would have to demonstrate how its technology works in court in order to have any hope of defeating such a lawsuit. And as the hotel guests don't have contracts with Rest, they aren't bound by any arbitration agreements.)
(Rest would have to demonstrate how its technology works in court in order to have any hope of defeating such a lawsuit. And as the hotel guests don't have contracts with Rest, they aren't bound by any arbitration agreements.)