Rite Aid banned from using facial recognition software after falsely identifying shoplifters | FTC says the company’s ‘reckless use’ of AI humiliated customers::Rite Aid has been banned from using facial recognition software, with the FTC highlighting the drugstore’s “reckless” use of AI surveillance.

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    A Reuters report from 2020 detailed how the drugstore chain had secretly introduced facial recognition systems across some 200 U.S. stores over an eight-year period starting in 2012, with “largely lower-income, non-white neighborhoods” serving as the technology testbed.

    With the FTC’s increasing focus on the misuse of biometric surveillance, Rite Aid fell firmly in the government agency’s crosshairs.

    Often, these “matches” were false positives that led to employees incorrectly accusing customers of wrongdoing, creating “embarrassment, harassment, and other harm,” according to the FTC.

    And companies such as Clearview AI, meanwhile, have been hit with lawsuits and fines around the world for major data privacy breaches around facial recognition technology.

    Additionally, the FTC said that Rite Aid failed to test or measure the accuracy or their facial recognition system prior to, or after, deployment.

    “The allegations relate to a facial recognition technology pilot program the Company deployed in a limited number of stores,” Rite Aid said in its statement.


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