For the next five years, Rite Aid is prohibited from utilizing facial recognition technology due to claims that their surveillance system was misused to identify possible shoplifters, with a focus on individuals who are Black, Latino, Asian, or female.

The Federal Trade Commission’s agreement deals with allegations that the pharmacy chain, which was facing difficulties, did not take sufficient measures to protect its customers and establish appropriate protocols, according to the government agency.

On Tuesday evening, Rite Aid stated that while it does not agree with the accusations, it is pleased that an agreement was reached to address the matter.

The Federal Trade Commission (FTC) has filed a complaint in federal court, stating that Rite Aid’s use of technology over the course of several years resulted in thousands of erroneous identifications. This included an incident in which store employees stopped and searched an 11-year-old girl.

From October 2012 to July 2020, the FTC stated that Rite Aid utilized facial recognition technology in numerous stores to identify potential shoplifters or individuals engaging in criminal activity. However, customers were not informed of this use of technology.

The complaint stated that the installation occurred at store locations in various cities such as New York City, Baltimore, Philadelphia, Los Angeles, and San Francisco. The cameras were designed to track customers upon entering the store or while navigating through it.

The technology will then cross-reference the live images with a database.

The complaint stated that a significant number of the images used in its database were of poor quality, sourced from security cameras, employee phone cameras, and news articles in certain instances.

The technology notified Rite Aid employees via email or phone when it detected individuals on its watchlist entering the store.

According to the complaint filed by the FTC, store employees would subsequently track these individuals, instruct them to exit the premises, or contact law enforcement. Additionally, federal authorities stated that employees would publicly accuse these individuals of past criminal acts in front of their acquaintances, relatives, and other patrons.

According to the federal complaint, Rite Aid did not conduct accuracy tests on its technology prior to implementation.

Rite Aid states that the accusations relate to a trial program that was implemented in a small selection of stores. The company ceased using this technology over three years ago.

“We acknowledge the FTC’s investigation and share their goal of safeguarding consumer privacy,” stated the company on their website. “However, we do not agree with the allegations regarding facial recognition in the complaint.”

The use of facial recognition technology has faced controversy. Advocates argue that it has been crucial in aiding law enforcement in apprehending drug traffickers and solving cases involving missing individuals. However, opponents argue that it results in a greater likelihood of misidentifying individuals of color.

According to a statement from Rite Aid, any potential deal will require approval from the U.S. Bankruptcy Court.

Last autumn, Rite Aid revealed plans to shut down over 150 stores while undergoing a voluntary Chapter 11 bankruptcy procedure.

Philadelphia-based Rite Aid Corp. boasts over 2,000 store locations. The company has faced ongoing financial challenges and is also at risk of financial liability due to legal actions concerning opioid prescriptions, similar to its larger competitors CVS and Walgreens.

Source: wral.com