Rite Aid is prohibited from using facial recognition programs in its stores for the next five years. The pharmacy chain agreed to this as part of a Federal Trade Commission settlement. The surveillance technology caused harm to its customers, and the company was accused of reckless use.
In response, the FTC stated that it will protect the public from unfair biometric surveillance and data security practices. Rite Aid tested facial identification camera systems in around 200 stores from 2012 to 2020. However, the technology mistakenly identified customers, leading to unwarranted searches and police dispatches.
FTC commissioner Alvaro Bedoya recounted instances where the technology falsely identified customers, leading to distressing situations. The FTC added that the technology was more prone to generating false positives in minority communities.
Rite Aid stated that it respects the FTC’s inquiry, although it fundamentally disagrees with the allegations. The company also claims that only a limited number of stores deployed the technology, and its support for the facial recognition program ended in 2020.
Hayley Tsukayama from the Electronic Frontier Foundation believes that the FTC’s recognition of the dangers of facial recognition technology and its impact on minority communities underlines the need for comprehensive data privacy regulations.
In addition to the five-year prohibition on employing facial recognition, Rite Aid must delete any collected images and photos of consumers.
