FTC Imposes 5-Year Facial Recognition Ban on Rite Aid for Misuse of AI Tech

The Federal Trade Commission (FTC) has reached a settlement with pharmacy chain Rite Aid over the misuse of facial recognition technology in its stores. Rite Aid activated the technology in hundreds of stores between 2012 and 2020 to identify shoplifters, but its failure to adopt safeguards and the technology's inaccuracies led to false accusations and racial biases. Incidents included an 11-year-old girl being searched and a Black customer being mistaken for a White woman. Rite Aid has agreed not to use the technology for five years, delete collected face images, and update the FTC on compliance. The case raises concerns about the use of facial recognition technology in other venues.