Rite Aid Banned from Using AI Facial Recognition After FTC Says Retailer Deployed Technology without Reasonable Safeguards

Summary:

The Federal Trade Commission (FTC) has filed a complaint against Rite Aid, alleging that the company used facial recognition technology to identify customers who may have been shoplifting or engaging in other problematic behavior. The FTC claims that Rite Aid failed to take reasonable measures to prevent harm to consumers, resulting in false accusations and harassment. The company's actions disproportionately impacted people of color. The FTC's complaint highlights several violations, including:

Failing to consider and mitigate potential risks to consumers from misidentifying them
Failing to test and assess the accuracy of the facial recognition technology
Preventing the use of low-quality images in connection with the technology
Failing to regularly monitor or test the accuracy of the technology after deployment
* Failing to adequately train employees on the use of the technology

The FTC is seeking to ban Rite Aid from using facial recognition technology for surveillance purposes for five years and requiring the company to implement comprehensive safeguards to prevent harm to consumers. Other provisions of the proposed order prohibit Rite Aid from misrepresenting its data security and privacy practices and require the company to provide notice to consumers about the use of facial recognition technology, delete images and biometric information, and implement a data security program. The order will take effect after approval from the bankruptcy court and federal district court.