Rite Aid Faces Ban on Facial Recognition Technology Following FTC Settlement

In a landmark decision, the Federal Trade Commission (“FTC”) has imposed a five-year ban on Rite Aid's use of facial recognition technology for surveillance in its stores. This action comes after the FTC found that Rite Aid had deployed this technology without adequate safeguards, leading to significant harm for consumers. The FTC's investigation revealed that the facial recognition system used by Rite Aid often produced false positives, mistakenly identifying customers—particularly women and individuals of color—as potential shoplifters. This practice not only exposed customers to humiliation but also subjected them to harassment, including unwarranted confrontations by employees and law enforcement. The Commission's Director of the Bureau of Consumer Protection, Samuel Levine, emphasized that Rite Aid's reckless implementation of facial recognition technology violated consumer trust and put sensitive information at risk.