Rite Aid, one of America's leading drug store chains, has found itself in hot water with the Federal Trade Commission (FTC) over its use of artificial intelligence (AI) and facial recognition technology. In a move reminiscent of a sci-fi thriller, Rite Aid has agreed to halt its use of facial recognition technology for the next five years following allegations of wrongful identification and unfair targeting of individuals based on their race.
The FTC has accused Rite Aid of employing AI-powered facial recognition technology to identify customers deemed likely to engage in criminal activities such as shoplifting. This initiative resulted in some customers being denied entry, detained, or subjected to searches. However, the use of this technology has proven to be far from accurate, with the FTC alleging that Rite Aid wrongfully identified customers as criminals. Furthermore, the FTC found that the system disproportionately targeted people of color, primarily in neighborhoods with large black, Latino, and Asian communities.
The FTC publicly rebuked Rite Aid, stating that their 'reckless use of facial surveillance systems' subjected their customers to humiliation and other harms, while also jeopardizing their sensitive personal information. As a result, Rite Aid has agreed to a five-year ban on using facial recognition technology.
It is important to note that Rite Aid filed for bankruptcy last October, making the approval of this settlement with the FTC contingent on a bankruptcy court judge's decision. Rite Aid, in response, expressed satisfaction in putting this matter behind them but refuted some of the allegations. The company argued that the facial recognition allegations related to a limited pilot program deployed in a few stores. They also claimed that they had ceased using this technology three years ago, before the FTC initiated their investigation.
The FTC's allegations against Rite Aid raise concerns regarding the ethical implications, privacy, and security of facial recognition technology. With plans for its implementation in malls, stadiums, and other stores, these allegations only serve to deepen doubts surrounding the reliability and fairness of such systems.
The outcome of Rite Aid's settlement with the FTC will undoubtedly set a precedent for the use of AI-powered facial recognition technology in the future. As regulators continue to scrutinize the boundaries of a rapidly developing technology, the focus on protecting consumer rights and preventing discriminatory practices will remain a key point of contention.
