How does this compare to humans? If you have a human police officer watching a crowd and singling out "suspects", what percentage of those are innocent?
More inaccurate, sure, but I'm thinking that with the amount of government money involved it'll slowly improve. Or at least society will reach a stage where we don't care about the incorrectly flagged anymore.
A better question might be: "given how accurate this facial recognition system is, what if anything in addition to a match should be required for an officer to detain someone matched by it?".
I don't have an answer for this one. This tech is new, and complex, and hard. We'll likely abuse it before we figure out how to properly balance human rights and protecting the public.