Rite Aid has entered a proposed settlement with the Federal Trade Commission to resolve allegations the drug store chain improperly used facial recognition technology to identify potential shoplifters.
As part of the settlement announced Dec. 19, the FTC banned Rite Aid from using the technology for surveillance purposes for five years.
FTC claims Rite Aid used facial recognition technology in hundreds of stores between 2012 and 2020 to identify people previously deemed likely to shoplift or engage in other criminal behavior. The commission contends the pharmacy chain failed to enact safeguards against the technology's inaccurate matches and racial biases, which often subjected shoppers to unfair searches.
Rite Aid has denied the FTC's allegations. The company said it was piloting the technology in a small number of stores and ended the program in 2020 before the FTC launched its investigation.
"Rite Aid’s mission has always been and will continue to be to safely and conveniently serve the communities in which we operate," the company said in a Dec. 20 statement. "The safety of our associates and customers is paramount. As part of the agreement with the FTC, we will continue to enhance and formalize the practices and policies of our comprehensive information security program."