FTC Bans Rite Aid From Using AI Facial Recognition Due To Falsely Tagging Consumers As Shoplifters

In a complaint filed in federal court, the Federal Trade Commission (FTC or Commission) has alleged that Rite Aid used facial recognition technology in its stores without taking reasonable steps to prevent harm to consumers who were falsely accused by employees of shoplifting or other criminal activity. The complaint also charges that Rite Aid violated a 2010 Commission data security order by failing to adequately oversee its technology service providers.

In a proposed order to settle the FTC's charges, Rite Aid has agreed to be prohibited from using facial recognition technology for surveillance purposes for five years. The settlement has many other requirements to prevent harm to consumers if Rite Aid deploys any automated systems that use biometric information to track shoppers or flag them as security risks in the future.