ID scanning was covered under the Privacy Act and pubs had to ensure secure databases and that personal information was destroyed quickly, Privacy Commissioner Karen Curtis said.
The Cambridge, Diggers clubs at Wallsend and Mayfield (formerly Ex Services Club) and Fannys of Newcastle nightclub use the devices.
Information is kept by the venues for between 24 hours and two weeks.
The eventual goal is to link all the Newcastle late-night venues to try to identify and restrict troublemakers.
Objectors have accused the pubs and clubs of Big Brother-style antics, citing conspiracy theories of Newcastle taking gradual steps towards becoming a police state.