19 Dec — Rite Aid, the beleaguered U.S. pharmacy chain currently undergoing bankruptcy proceedings, has been barred from employing facial recognition technology for surveillance purposes over the next five years. The decision comes as part of an agreement with the U.S. Federal Trade Commission (FTC), which alleges that Rite Aid’s utilization of artificial intelligence (AI) facial recognition harmed consumers.
The FTC asserted that Rite Aid deployed AI-based facial recognition technology from 2012 to 2020 with the primary goal of identifying shoplifters. However, the company’s system inaccurately identified certain individuals, erroneously flagging them as matching someone previously identified as a shoplifter.
In response to these allegations, Rite Aid issued a statement acknowledging the existence of a facial recognition technology pilot program, but clarified that it was implemented in a limited number of stores. The company maintained that it ceased using the technology in these select stores over three years ago, predating the initiation of the FTC’s investigation.
“The allegations relate to a facial recognition technology pilot program the company deployed in a limited number of stores,” the company stated. “Rite Aid stopped using the technology in this small group of stores more than three years ago, before the FTC’s investigation regarding the Company’s use of the technology began.”
The agreement between Rite Aid and the FTC is contingent upon approval by the bankruptcy court overseeing Rite Aid’s insolvency case.
The FTC’s complaint and subsequent ban follow a 2020 Reuters investigation into Rite Aid’s facial recognition program. The investigation unveiled that Rite Aid discreetly integrated facial recognition systems into hundreds of its stores across the United States. Furthermore, it revealed that the technology was disproportionately deployed in lower-income, non-white neighborhoods in New York and Los Angeles.
Upon receiving the findings from Reuters in July 2020, Rite Aid publicly announced the discontinuation of its facial recognition software. The recent settlement with the FTC formalizes the ban on the company’s use of AI facial recognition for surveillance purposes for the next five years.
As technology and privacy concerns continue to intersect, this case underscores the importance of responsible and transparent use of facial recognition technology in retail settings and the potential consequences for companies found in violation of consumer protection standards.
What is Rite Aid?
Rite Aid Corporation is a drugstore chain in the United States. It is one of the largest pharmacy chains in the country, with thousands of stores across multiple states. Rite Aid offers a range of pharmaceutical services, over-the-counter medications, health and wellness products, beauty and personal care items, and general merchandise. The company also provides prescription fulfillment, immunizations, and other health-related services. Rite Aid plays a significant role in the retail pharmacy industry, serving customers’ health and wellness needs.
Source: Reuters