Rite Aid barred from facial recognition tech use for five years after defective theft concentrating on in shops
Rite Aid has been banned from utilizing facial recognition expertise for 5 years over allegations that its surveillance system was used incorrectly to determine potential shoplifters, particularly Black, Latino, Asian or feminine buyers.
The settlement with the Federal Trade Commission addresses prices that the struggling drugstore chain didn’t do sufficient to forestall hurt to its clients and implement “reasonable procedures,” the federal government company mentioned.
Rite Aid mentioned late Tuesday that it disagrees with the allegations, however that it’s glad it reached an settlement to resolve the difficulty.
The FTC mentioned in a federal courtroom grievance that Rite Aid used facial recognition expertise in a whole lot of shops from October 2012 to July 2020 to determine buyers “it had previously deemed likely to engage in shoplifting or other criminal behavior.”
The expertise despatched alerts to Rite Aid staff both by e mail or telephone when it recognized individuals getting into the shop on its watchlist.
The FTC mentioned in its grievance that retailer staff would then put these individuals below elevated surveillance, ban them from making purchases or accuse them in entrance of pals, household and different clients of beforehand committing crimes.
The federal grievance additionally mentioned there have been “numerous instances” the place the expertise incorrectly recognized somebody who entered the shop, and Rite Aid failed to check its accuracy earlier than utilizing it.
It additionally mentioned the corporate “failed to take reasonable steps to train and oversee the employees charged with operating the technology in Rite Aid stores.”
Rite Aid says the allegations middle on a pilot program it utilized in a restricted variety of shops, and it stopped utilizing this expertise greater than three years in the past.
“We respect the FTC’s inquiry and are aligned with the agency’s mission to protect consumer privacy, the company said in a statement posted on its website. “However, we fundamentally disagree with the facial recognition allegations in the agency’s complaint.”
Rite Aid additionally famous in a ready assertion that any settlement should be authorized in U.S. Bankruptcy Court.
Rite Aid introduced final fall that it was closing greater than 150 shops because it makes its means via a voluntary Chapter 11 chapter course of.
Rite Aid Corp., based mostly in Philadelphia, has greater than 2,000 areas. The firm has struggled financially for years and in addition faces monetary threat from lawsuits over opioid prescriptions like its larger rivals, CVS and Walgreens.
