Rite Aid Barred From Using Facial Recognition Technology for 5 Years

Rite Aid, the U.S. retail pharmacy chain, is facing a five-year ban on the use of facial recognition technology. This follows the Federal Trade Commission’s (FTC) discovery that the chain had inaccurately labeled customers as offenders and disproportionately targeted individuals of racial minority backgrounds.

The settlement between the FTC and Rite Aid came on Tuesday after a complaint alleged that the chain used AI-based software at several store locations to identify and exclude individuals presumed to engage in illegal activities like thievery. Unfortunately, the technology’s flaws led to customers being wrongly accused of criminal behaviors, and in some cases, even detained and searched. The FTC additionally claimed that some of the company’s employees publicly accused people of criminal activity in front of family, friends, and strangers.

Rite Aid insists that the technology in question was part of a limited pilot program that concluded three years ago — before the FTC’s investigation. However, the FTC’s legal filings, containing customer complaints from 2012 to 2020, pointed out that the technology was mainly used in areas with significant Black, Latino, and Asian populations.

The trial program was designed around building a database compiling thousands of low-quality facial images captured from store cameras and employees’ phones. These individuals were labeled as “persons of interest” due to Rite Aid’s presumption of their involvement in criminal activity within stores. As part of the settlement, the FTC mandates Rite Aid to delete these images and inform the customers about their inclusion in a database.

The FTC has also proposed mandates for Rite Aid to establish thorough safeguards against potential harm to its customers when using AI-based technology.

“The safety of our associates and customers is paramount. As part of the agreement with the FTC, we will continue to enhance and formalize the practices and policies of our comprehensive information security program.”

Rite Aid via CNN

With Rite Aid currently undergoing bankruptcy proceedings, the implementation of the FTC’s orders will follow court approval.