DocumentedFacial Recognition Wrongful IdentificationDecember 19, 2023United States

Rite Aid Facial Recognition FTC Ban

Rite Aid secretly deployed facial recognition surveillance in hundreds of stores from 2012-2020, predominantly in neighborhoods with large communities of color. The system generated thousands of false positives, sometimes matching the same person at stores thousands of miles apart. Employees were instructed not to reveal the tech and acted on false-positive alerts to accuse, search, detain, or call police on customers.

AI system:Undisclosed facial recognition vendors

Impact

Rite Aid deployed the tech despite vendor explicitly disclaiming accuracy warranty. FTC called it 'reckless.'

Outcome

First major FTC enforcement action against biased AI. Rite Aid banned 5 years from facial recognition or biometric surveillance. Must delete all images, implement new safeguards overseen by top execs, comply with a 2010 data security order. No monetary fine (Rite Aid in bankruptcy).

Sources

  1. Source 1Federal Trade Commissionwww.ftc.gov/news-events/news/press-releases/2023/12/rite-aid-banned-using-ai-facial-recognition-after-ftc-says-retailer-deployed-technology-without
  2. Source 2CNNwww.cnn.com/2023/12/20/tech/rite-aid-ai-ftc-settlement
  3. Source 3FTC legal documentswww.ftc.gov/legal-library/browse/cases-proceedings/2023190-rite-aid-corporation-ftc-v

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