The Federal Trade Commission (FTC) recently announced that it has reached a settlement with drugstore chain Rite Aid over its “improper use of facial recognition technology.” According to the agency, Rite Aid wrongfully used facial recognition technology to accuse customers of shoplifting without sufficient evidence or proof.
In its announcement, the FTC noted that between November 2017 and July 2019, Rite Aid had implemented facial recognition technology in over 70 of its stores across California. Whenever a customer entered one of these stores, images of their faces were taken and then compared against a facial recognition database of allegedly shoplifted persons. If there was a match between the customer’s facial data and the facial recognition database, then the customer would be prevented from leaving the store until they underwent an inspection and investigation for shoplifting.
The FTC noted that Rite Aid’s use of facial recognition technology create an “unacceptable risk” to customers’ privacy and safety. In its settlement with the company, the FTC required that Rite Aid must now require its stores to obtain express permission before using facial recognition technology, must provide customers with notice of its facial recognition practices, and must update its privacy policies and practices to ensure that it complies with the FTC’s rules. The company must also submit to periodic audits over the course of the next 20 years.
Overall, this settlement represents a major step forward for consumer rights advocates, as it shows that the FTC is taking facial recognition technologies seriously and is actively regulating its implementations. By issuing this settlement, the FTC is sending a powerful message to companies that improper use of facial recognition software carries significant repercussions.
