Rite Aid's Facial Recognition Fiasco: Misidentifying Shoplifters and Facing Consequences

The Federal Trade Commission (FTC) has accused Rite Aid of secretly using facial recognition technology on customers for nearly a decade, wrongfully accusing many of shoplifting. The FTC found that Black and Asian customers were more likely to be misidentified than white customers, and women were more likely to be misidentified than men. Rite Aid contracted with two companies to create a database of images of "persons of interest" believed to have engaged in criminal activity. Rite Aid has been barred from using facial recognition technology for five years, and a bankruptcy court must approve the order. This is the first time the FTC has ordered an entity to stop using facial recognition technology.