US regulator bans pharmacy chain Rite Aid from using facial recognition system for five years

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The US Federal Trade Commission (FTC) has ordered Rite Aid, one of the largest pharmacy chains in the country, to ban facial recognition technology for five years.

Here's What We Know

According to the regulator, Rite Aid implemented the system in hundreds of its shops between 2012 and 2020 to identify potential shoplifters. However, the software often gave false positives, resulting in a number of shoppers being subjected to unreasonable searches and detentions.

In the complaint, the FTC states that Rite Aid's system worked less accurately in shops located in predominantly African-American and Asian neighbourhoods. The company also maintained an extensive database of individuals it deemed "suspicious" based on camera footage and documents.

Rite Aid intends to settle the matter with the FTC, but disagrees with most of the regulator's allegations. The court is currently reviewing the agreement as part of the company's bankruptcy proceedings.

Rite Aid's facial recognition system at its pharmacies has been out of use for more than three years.

Source: CNBC