Rite Aid Faces Five-Year Facial Recognition Ban for Misuse

Rite Aid has been banned from using facial recognition software for five years by the Federal Trade Commission (FTC) due to its "reckless use of facial surveillance systems," which resulted in customer humiliation and the risk of sensitive information exposure. The FTC's order requires Rite Aid to delete all collected images and products derived from its facial recognition system, as well as implement a robust data security program. The drugstore chain had secretly implemented facial recognition systems in some of its stores, primarily in lower-income, non-white neighborhoods. The FTC found that Rite Aid's system generated false positives, leading to employees wrongly accusing customers of wrongdoing and causing embarrassment and harm. The case highlights the controversies and biases associated with facial recognition technology and the need for regulation and accountability.