Earlier quoted context omitted.
Yes, but that is kind of the point. The lack of checks and balances tend to lead to totalitarianism.
So in what way will facial recognition and "criminal spotted on 5th avenue" either dissuade or encourage totalitarianism/removing checks and balances?. If a Gov't falls into totalitarianism, a facial recognition ban (both internally within AMZN as well as on a national/local level) won't stop them from requiring AMZN to provide them facial recognition behind-the-scenes.
There are other, better, arguments in favor of personal liberty to use against facial recognition by law enforcement. Efficient, highly automated systems crush people who just happen to get caught up in them.