Feds Go After Rite Aid for Using ‘Unfair’ Facial Recognition Technology To Spot Shoplifters, Saying It ‘Humiliates’ Persons of Color
The retailer, which is already facing financial strain from settlements related to opioid lawsuits and suffering major financial losses from rampant shoplifting, uses AI-powered surveillance to ‘capture images of all consumers as they entered or moved through the stores.’
The Federal Trade Commission has ordered Rite Aid to stop using artificial intelligence surveillance devices to curb shoplifting, saying the facial recognition technology disproportionately harms people of color.
According to the agency, the system has incorrectly matched shoppers in predominantly Black and Asian localities to past shoplifters and troublemakers at a higher rate than shoppers in predominantly white areas. The FTC has therefore banned the company from using AI surveillance devices for five years.
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