• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Rite Aid wrongfully used facial recognition to accuse customers of shoplifting, FTC says
Editor's Pick

Rite Aid wrongfully used facial recognition to accuse customers of shoplifting, FTC says

by December 22, 2023
by December 22, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The Federal Trade Commission said Wednesday that Rite Aid secretly used facial recognition on customers for nearly a decade and wrongfully accused many of shoplifting.

The FTC said Black and Asian customers were more likely than white customers to be misidentified as people who had shoplifted or tried to. Women were more likely to be misidentified than men.

According to the complaint, Rite Aid contracted with two companies to help create a database of images of people — considered to be “persons of interest” because Rite Aid believed they engaged in or tried to engage in criminal activity at one of its retail locations — along with their names and other information, such as any criminal background data.

In a statement, Rite Aid said the program was used at only a few stores and discontinued in 2020.

Under the settlement, the agency barred Rite Aid from using facial recognition technology in stores or online for five years. The FTC confirmed to NBC News that it’s the first time it has ordered any entity to stop using facial recognition.

“Rite Aid’s reckless use of facial surveillance systems left its customers facing humiliation and other harms, and its order violations put consumers’ sensitive information at risk,” Samuel Levine, the director of the FTC’s Bureau of Consumer Protection, said in a news release.

A bankruptcy court must approve the order, because Rite Aid filed for bankruptcy protection in October.

In its statement, the FTC said Rite Aid started using ‘artificial intelligence-based facial recognition technology’ in 2012 to identify customers who may have been shoplifting or engaging in other undesirable behavior. It contracted with two companies to develop a database of people who had shoplifted or been accused of shoplifting in the past.

People walk past a Rite Aid in Queens, N.Y., on Oct. 16.Anthony Behar / Sipa USA via AP file

The database was often filled with low-quality images from store security cameras, employees’ phones or news stories, along with names and other information, including any criminal background data.

Then the system sometimes identified shoppers as people who had been accused of shoplifting at other stores thousands of miles away or flagged one person at dozens of stores around the country.

The FTC said the system generated thousands of false positives, more commonly in stores in neighborhoods with large Black and Asian populations than with white ones.

‘Employees, acting on false positive alerts, followed consumers around its stores, searched them, ordered them to leave, called the police to confront or remove consumers, and publicly accused them, sometimes in front of friends or family, of shoplifting or other wrongdoing,’ the FTC said.

Customers weren’t informed that Rite Aid was using the technology, and employees were ‘discouraged’ from revealing it, the agency said.

It also said Rite Aid didn’t take steps to mitigate the harm that would have been caused by falsely accusing customers of shoplifting and didn’t regularly monitor or test its system, nor did it tell employees that the system could make mistakes. When the company switched to a technology that enabled employees to report bad matches and required them to use it, it didn’t follow through to make sure employees followed that policy.

Notably, the FTC didn’t fine Rite Aid. Justin Brookman, the director of technology policy for Consumer Reports, said the agency seemed to have prioritized establishing a precedent regarding companies’ responsibilities when they use facial recognition technology in stores.

“I get the impression that it’s growing in practice, so the FTC wanted to get ahead of this to some extent,’ Brookman said.

The FTC said in May that companies that use biometric technologies such as facial recognition have to implement them fairly and mitigate the harm they could cause. It also said companies that offer biometric technology can’t make false promises about its accuracy or effectiveness.

In 2010, just two years before Rite Aid started using the facial recognition technology, it settled an FTC charge saying it failed to protect the medical and financial records of customers and employees. That resulted in a $1 million penalty, and the FTC said that in implementing the facial recognition system and failing to oversee its vendors, Rite Aid violated that settlement.

The agency said Rite Aid will be required to implement ‘a robust information security program, which must be overseen by the company’s top executives.’

This post appeared first on NBC NEWS
You Might Also Like
  • Possible work stoppage at Canada’s two largest railroads could disrupt U.S. supply chain
  • American Airlines raises bag fee by $10 for luggage checked at the airport
  • Disney posts mixed results for quarter plagued by streaming woes, restructuring costs
  • ESPN is launching a sportsbook for online gambling
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Top Five Charts of 2023 #4: Leadership Themes
next post
Honda recalls thousands of hybrids over electrical issue that could lead to fires

You may also like

How raising interest rates helps fight inflation and high prices

July 14, 2023

Bitcoin prices hit all-time high, soaring to nearly $69,000

March 7, 2024

The 10 worst states to retire in the U.S. No....

July 31, 2024

Biden administration sues to block Kroger-Albertsons supermarket merger

February 27, 2024

Pandemic aid officials who overpaid vulnerable renters are saying, ‘We...

September 24, 2023

USPS resumes shipments from China in abrupt about-face

February 5, 2025

Grubhub to pay $25M to settle charges that it misled...

December 18, 2024

How IoT is improving employee welfare and safety in a...

November 30, 2022

Sam Bankman-Fried is confronted with his own words as prosecutors...

October 31, 2023

ESPN, Fox and Warner Bros. Discovery to launch joint sports...

February 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025
    • Use This Multi-Timeframe MACD Signal for Precision Trades

      May 7, 2025
    • Judge allows lawsuit over Burger King’s Whopper ads to move forward

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against...

      May 7, 2025
    • NBA star Russell Westbrook launches AI-enabled funeral planning startup

      May 7, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,064)
    • Investing (538)
    • Stock (2,529)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Building Brand Names: 5 IoT Startups...

    March 11, 2023

    Microsoft to roll out new autonomous...

    October 22, 2024

    Willow Bay, Bob Iger to take...

    July 17, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here