"FTC Imposes Five-Year Facial Recognition Ban on Rite Aid for Reckless Misuse"

Rite Aid has agreed to a five-year ban on using AI-powered facial recognition technology as part of a settlement with the Federal Trade Commission (FTC). The FTC accused Rite Aid of using facial surveillance systems recklessly from 2012 to 2020, capturing images of all customers and creating a database of individuals deemed suspicious. Employees allegedly followed flagged customers, publicly accused them of shoplifting, and falsely identified people, disproportionately impacting people of color. Rite Aid must establish safeguards, delete customer data, implement a data security program, and provide notice to customers in the future. Other retailers have faced similar scrutiny, and some states have enacted laws to regulate facial recognition use.