US bans pharmacy Rite Aid from facial recognition use


The shoplifter detection technology used by pharmacy chain Rite Aid, which is in bankruptcy proceedings, has been banned by the Federal Trade Commission. – AFP pic, December 20, 2023.

PHARMACY group Rite Aid was ordered yesterday to stop using facial recognition for the next five years by a United States regulator, which said the company falsely identified consumers as shoplifters using the technology.

The case touches on one of the main concerns about the proliferation of artificial intelligence, and facial recognition in particular, which is deemed to potentially misidentify or discriminate against individuals, especially non-whites and women.

“Rite Aid’s reckless use of facial surveillance systems left its customers facing humiliation and other harms,” said Samuel Levine, director of consumer harms at the Federal Trade Commission (FTC).

The FTC said from 2012 to 2020, Rite Aid deployed facial recognition technology to spot repeated shoplifting offenders and other problematic behaviour.

But the technology “falsely flagged… consumers as matching someone who had previously been identified as a shoplifter or other troublemaker”.

The pharmacy group, which is currently in bankruptcy proceedings, also failed to properly train employees about the fact there could be false positives with the technology or to prevent the use of low-quality images.

The FTC also ordered the group and any other company involved to delete all data connected to its programme.

Rite-Aid said it was “pleased to reach an agreement with the FTC and put this matter behind us”. – AFP, December 20, 2023.


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