An interaction recording system and method for recording data associated with an interaction between a first entity and a second entity are disclosed. The interaction recording system (1) comprises a first unit (2) associated with the first entity, a second unit (3) associated with the second entity. The first unit comprises a first communication device for communicating data, a first controller, a first storage medium storing data associated with the first entity, and a passive detector. The second unit comprises a second communication device for communicating data, a second controller, and a second storage medium for storing data. The passive detector is operable to determine the presence of the second unit within a range of the first unit indicating an interaction between the second entity and the first entity. The first controller is operable, following determination by the passive detector of the presence of the second unit within the range, to activate the first unit from a default lower power mode to a higher power mode in which the first unit is operable to communicate, via the first communication device, some or all of the data stored on the first storage medium, including the first entity data, to the second unit for receipt via the second communication device. The second controller is operable to determine data associated, with the interaction and to record the determined interaction data and the received communicated data, including the first entity data, on the second storage medium.