Technology

Rite Aid can’t use facial recognition tech for 5 years

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December 20, 2023

The Federal Trade Commission has banned drugstore chain Rite Aid from using any facial recognition technology for five years following allegations the technology falsely tagged customers as potential shoplifters.

The retailer had been using the technology across hundreds of stores in several states, according to a CNBC report.

The ban is a settlement between the chain and the federal agency and includes a mandate that Rite Aid order third-party partners to delete images collected by the technology system and could lead to a permanent ban if Rite Aid fails to control future potential risks.

Rite Aid, while indicating it is happy to have reached a settlement, stated the chain stopped using the tech prior to the FTC investigation, according to a company statement.