Rite Aid Banned from Using Facial Recognition Surveillance Technology
Rite Aid has been banned from using facial recognition surveillance technology for five years as a result of Federal Trade Commission charges. The agency stated that Rite Aid failed to protect consumers in hundreds of its stores.
The FTC complaint revealed that Rite Aid employed a covert surveillance program based on artificial intelligence (AI) from 2012 to 2020. The program was used to identify potential shoplifters. However, according to the FTC, the system generated thousands of false positives due to poor image quality.
Rite Aid hired two companies to assist in creating a database of tens of thousands of images. These images were collected from security cameras, employee phone cameras, and news stories. The database was intended to identify individuals who had committed crimes or were planning to commit crimes at Rite Aid locations.
The settlement reached with the FTC prohibits Rite Aid from using facial recognition technology for the next five years. This decision serves as a reminder to companies to prioritize consumer protection when implementing surveillance technologies.
FTC Takes Action Against Rite Aid for Misuse of Biometric Information
The Federal Trade Commission (FTC) has issued a statement emphasizing its commitment to preventing the misuse of biometric information. The agency's Director of the Bureau of Consumer Protection, Samuel Levine, criticized Rite Aid for its "reckless use of facial surveillance systems," which resulted in harm and humiliation for its customers. The FTC's order aims to protect the public from unfair biometric surveillance and data security practices.
Rite Aid, currently undergoing bankruptcy restructuring, responded to the allegations by stating that they relate to a facial recognition technology pilot program that was discontinued over three years ago. The company denies the allegations made in the FTC's complaint.
