Many stores have cameras in place to monitor and prevent theft in the store. If it is combined with AI systems and face recognition devices, of course, more applications can be carried out, and the current technology is completely done. However, it also scares a lot of consumers, and when you look up and see the monitor in the store, who knows what data will appear behind it?
Rite Aid, a drugstore chain in the United States, has been complained to the Federal Trade Commission that it abused the facial surveillance system between 2012 and 2020.
During this period, Rite Aid used facial recognition technology to "capture images of all consumers as they enter or pass through the store," according to the Federal Commission. Rite Aid has also created a database of customers identified as stealing or otherwise acting suspiciously. According to the complaint, most customers may not necessarily have any special information, but for some specific customers, the database will have "collateral information" such as name, date of birth, and activity that the store deems suspicious.
When flagged shoppers enter a Rite Aid store with facial recognition technology, employees receive a "matching alert" on their phones, according to the federal commission. As a result, employees at Rite Aid followed customers in the store, conducted searches, publicly accused customers of theft, and even demanded that authorities remove certain shoppers, the complaint alleges.
In addition, the pharmacy chain did not inform customers that it used facial recognition technology, and employees were instructed not to disclose this information. Most Rite Aid stores equipped with facial recognition technology are located in New York City, Los Angeles, Sacramento, Philadelphia, Baltimore, Detroit, Atlantic City, and a few other cities.
Samuel Levine, director of the U.S. Federal Commission for Consumer Protection, said in a statement: "Rite Aid's reckless use of facial surveillance systems to expose customers to humiliation and other harm, and its violation of orders puts consumers' sensitive information at risk." Today's groundbreaking order makes it clear that the Commission will remain vigilant to protect the public from unfair biometric surveillance and unfair data security practices. ”
As part of a settlement with the United States, Rite Aid is prohibited from using AI-powered facial recognition technology for the next five years.
In addition to banning the use of facial recognition technology for five years, the FTC's proposed order would require Rite Aid to create comprehensive safeguards to protect customers. The company must delete all customer claims collected by the facial recognition system, implement a data security plan, and provide written notice to customers who enter their biometric data into the database in the future.
As Rite Aid is currently filing a bankruptcy filing, the Federal Commission said the order will take effect immediately once the bankruptcy court and federal district court approve the measures.
In addition to Rite Aid, several retail stores have already used facial recognition as a means of monitoring guests. In 2021, 35 organizations banded together to demand Albertsons, Macy'Retailers such as S and Ace Hardware stopped using the technology. Some states, including Maine, have enacted laws to regulate the use of facial recognition, while New York City requires establishments and retailers to notify customers when using biometric data collection.