The FTC also accused Rite Aid of failing to take reasonable measures to prevent harm to consumers, such as informing them about the use of the technology in stores. The settlement requires Rite Aid and its third-party tech providers to delete any images collected by the facial recognition system and to notify consumers about the in-store use of biometric surveillance. Rite Aid is also accused of violating a 2010 FTC order by failing to adequately oversee its service providers, resulting in the company having to implement an information security program overseen by its top executives.
Key takeaways:
- Rite Aid has been banned from using facial recognition technology for surveillance for five years as part of a court case settlement with the Federal Trade Commission (FTC).
- The FTC accused Rite Aid of misusing AI-powered facial recognition technology for surveillance and loss prevention purposes, resulting in many people being mistakenly accused of wrongdoing, particularly women and people of color.
- Rite Aid must delete any images collected by the facial recognition system, notify consumers about the in-store use of biometric surveillance, and respond in writing to consumer complaints about actions taken based on AI-based surveillance.
- Rite Aid is also accused of violating a 2010 FTC order by failing to adequately oversee its service providers, and as a result, must implement an information security program overseen by the company’s top executives.