The proposed order will require Rite Aid to implement comprehensive safeguards to prevent harm to consumers when using automated systems that use biometric information. The drugstore chain must also implement a robust information security program, overseen by the company’s top executives. Rite Aid responded by stating that they respect the FTC's inquiry and are aligned with its mission to protect consumer privacy, but fundamentally disagree with the facial recognition allegations in the agency’s complaint.
Key takeaways:
- The Federal Trade Commission (FTC) has prohibited Rite Aid from using facial recognition technology for surveillance purposes for five years as part of a settlement.
- The FTC charged Rite Aid with failing to implement reasonable procedures and prevent harm to consumers in its use of facial recognition technology in hundreds of stores.
- The proposed order will require Rite Aid to implement comprehensive safeguards to prevent harm to consumers when deploying automated systems that use biometric information.
- Rite Aid has stated that they disagree with the facial recognition allegations in the FTC's complaint, stating that the technology was only used in a pilot program in a limited number of stores and was stopped more than three years ago.