Rite Aid Faces 5-Year Facial Recognition Ban for Reckless Use of AI Tech

Rite Aid has agreed to a five-year ban on the use of facial recognition software in its stores after thousands of false matches disproportionately affecting people of color. The Federal Trade Commission (FTC) accused the retailer of failing to take reasonable precautions, resulting in false accusations of shoplifting and inappropriate behavior. Rite Aid employees followed and searched customers, accused them in front of others, and called the police. The company also failed to inform customers about the use of facial recognition and discouraged employees from doing so. Rite Aid collected tens of thousands of low-quality images between 2012 and 2020. The FTC's order aims to protect the public from unfair biometric surveillance and data security practices. Rite Aid, while pleased with the agreement, disagrees with the facial recognition allegations. The company will delete previously collected photos, implement safeguards, and provide notice to customers about the use of the technology.