United States · AI · 19 Dec 2023

Rite Aid banned from facial recognition for five years after false shoplifting alerts

5-year ban on facial recognition for surveillance; delete images and any AI models built from them

Company: Rite Aid
Regulator or court: Federal Trade Commission
Law: FTC Act, Section 5 (unfair practices) and a 2010 FTC data security order
Status: Settlement

What happened

From 2012 to 2020 Rite Aid used AI facial recognition in hundreds of stores to flag suspected shoplifters, often using poor-quality images. The FTC said the system produced many false matches, staff followed, searched and accused innocent customers, and the errors fell more heavily on people of colour. Rite Aid, which was in bankruptcy, agreed to a court order without admitting the allegations.

Sources

FTC press release (19 Dec 2023)FTC case page

Summary in our own words. General information, not legal advice.

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