Rite Aid's Reckless Facial Recognition Use Results in 5-Year Ban

Rite Aid has settled with the Federal Trade Commission (FTC) over allegations that its facial recognition systems misidentified individuals, particularly women and people of Black, Latino, or Asian descent, as potential shoplifters without their consent. The settlement prohibits Rite Aid from using facial recognition technology in its stores for five years. The FTC complaint stated that Rite Aid used the technology in hundreds of stores, leading to increased surveillance, bans on purchases, and public accusations of criminal behavior. The company created a database of "persons of interest" with low-quality images captured through CCTV cameras, facial recognition cameras, or employee mobile phones. Rite Aid disagreed with the allegations but reached an agreement to resolve the issue. Studies have shown that facial recognition systems often misidentify Black and brown people, leading to false arrests.