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FTC bans Rite Aid's use of AI facial recognition over lack of consumer protections
Fox Business News ^ | 12/20/2023 | Eric Revell

Posted on 12/20/2023 4:58:16 AM PST by bert

The FTC reached a settlement with Rite Aid over its AI-powered surveillance system that agency said lacked consumer safeguards

In a complaint filed in federal court, the FTC argued that Rite Aid used AI-based facial recognition tools to identify customers who may have engaged in shoplifting or other problematic behavior. The agency said that Rite Aid failed to put in place safeguards to protect employees who were falsely accused of wrongdoing because the facial recognition technology mistakenly flagged them as matching someone previously identified as a shoplifter or other troublemaker.

The FTC said the facial recognition system "generated thousands of false-positive matches" and that it "sometimes matched customers with people who had originally been enrolled in the database based on activity thousands of miles away, or flagged the same person at dozens of different stores" all across the country.

It added that Rite Aid’s technology was also more likely to generate false positives at stores located in plurality-Black and Asian communities, used low-quality images that made false positives more likely and failed to both adequately train employees on the technology and regularly monitor its accuracy.

"Rite Aid’s reckless use of facial surveillance systems left its customers facing humiliation and other harms, and its order violations put consumers’ sensitive information at risk," said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. "Today’s groundbreaking order makes clear that the Commission will be vigilant in protecting the public from unfair biometric surveillance and unfair data security practices."

The FTC will require Rite Aid to implement consumer safeguards when deploying automated systems using biometric information to track them or flag them as security risks. It will also require the company to discontinue the use of technology if can’t control potential risks to consumers, and Rite Aid executives will have to implement a "robust information security program" that has to be "overseen by the company’s top executives."


TOPICS: Business/Economy; News/Current Events
KEYWORDS: facialrecognition; pandering; riteaid
In a complaint filed in federal court, the FTC argued that Rite Aid used AI-based facial recognition tools to identify customers who may have engaged in shoplifting or other problematic behavior. The agency said that Rite Aid failed to put in place safeguards to protect employees who were falsely accused of wrongdoing because the facial recognition technology mistakenly flagged them as matching someone previously identified as a shoplifter or other troublemaker.

The FTC said the facial recognition system "generated thousands of false-positive matches" and that it "sometimes matched customers with people who had originally been enrolled in the database based on activity thousands of miles away, or flagged the same person at dozens of different stores" all across the country.

It added that Rite Aid’s technology was also more likely to generate false positives at stores located in plurality-Black and Asian communities, used low-quality images that made false positives more likely and failed to both adequately train employees on the technology and regularly monitor its accuracy.

RITE AID CLOSING 154 STORES IN 15 STATES: HERE’S THE LIST

The Biden administration panders to the corrupt Black criminal class by once again allowing criminals to prevail over merchants.

In the vernacular........ Kissing Black Ass

1 posted on 12/20/2023 4:58:16 AM PST by bert
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To: bert
Facial recognition tech has been widely used across the US government for years, a new report shows

The agencies used facial recognition software from May to August of last year “to support criminal investigations related to civil unrest, riots, or protests,” according to a report released on Tuesday by the US Government Accountability Office, based on a survey of 42 federal agencies. The US Postal Inspection Service, for instance, told the GAO that it used software from Clearview AI, a controversial facial-recognition system, to help track down people suspected of crimes, such as stealing and opening mail and stealing from Postal Service buildings.

There are currently no federal laws governing the application of such technology, though some states and local governments have set their own rules limiting how it can be rolled out and legislation related to the technology has been introduced in Congress.

https://www.cnn.com/2021/06/30/tech/government-facial-recognition-use-gao-report/index.html

2 posted on 12/20/2023 5:05:55 AM PST by Lockbox (politicians, they all seemed like game show hosts to me.... Sting…)
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To: Lockbox

I’m thinking that WalMart has facial recognition based on some stories that I’ve heard


3 posted on 12/20/2023 5:07:45 AM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: SaveFerris

Yes it does


4 posted on 12/20/2023 5:24:02 AM PST by Lockbox (politicians, they all seemed like game show hosts to me.... Sting…)
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To: SaveFerris

Casinos have been using this technology for a while now. I feel discriminated against. GIVE ME BACK MY MONEY!


5 posted on 12/20/2023 5:28:13 AM PST by unixfox (Abolish Slavery, Repeal the 16th Amendment)
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To: bert

If you’re wondering why the Federal Trade Commission even has a say over this... you’re right.


6 posted on 12/20/2023 5:34:21 AM PST by Demiurge2 (Define your terms!)
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To: bert

Rite Aid was hammered for millions and millions on the mostly bogus opioid claim.

But they are allowed to do nothing to mitigate any loss, including fake repeat customers attempting to purchase hard drugs.

Such a deal.


7 posted on 12/20/2023 6:58:24 AM PST by DUMBGRUNT ( "The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: SaveFerris

They do use it but not everywhere.

Marc Cuban loves this stuff. I know his IT people, if you are on one of Cuban’s properties or even outside on the street this technology is watching you. Been to a Dallas Mavericks game? If yes, he’s got a pic of your face and builds a lot of data in to your “file”.


8 posted on 12/20/2023 7:27:27 AM PST by isthisnickcool (1218 - NEVER FORGET!)
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To: isthisnickcool

Figures. He is one weird dude.


9 posted on 12/20/2023 7:34:58 AM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: SaveFerris

Yes, they do use it. I seen it in action in southern Ohio. Stupid asses forgot to turn off the yellow tracking boxes. I rubbed my eye with my middle finger while waiting in line. This mis-identification explains all that happened to me this summer waiting for a pickup.


10 posted on 12/20/2023 8:05:09 AM PST by OftheOhio (never could dance but always could fight - Romeo company)
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To: bert

Facial recognition use by private companies to combat crime and theft inside their corporate owned buildings is completely unacceptable.

Government use of facial recognition to target conservatives, patriots and other political undesirables is fine though.


11 posted on 12/20/2023 8:13:25 AM PST by nitzy (I wonder if the telescreens in 1984 were first called "free Obamascreens")
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To: nitzy

“Facial recognition use by private companies to combat crime and theft inside their corporate owned buildings is completely unacceptable.”

I wouldn’t have a problem with that, but you have to know they sell that information. Read their privacy policy. You have no privacy. You don’t think they work for the government, please....

A little secret, don’t ever by an item with a re-taped or opened box from Walmart. That’s fraud on their part right there, and then when you return it, you will be the one accused of fraud.


12 posted on 12/20/2023 7:17:41 PM PST by OftheOhio (never could dance but always could fight - Romeo company)
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