Rite Aid has been banned from utilizing facial recognition technology in its stores for five years due to its “careless” usage of the technology.
After the Federal Trade Commission discovered that Rite Aid disproportionately singled out people of color and falsely accused customers of crimes, the chain accepted a five-year restriction on employing face recognition technology. Following a complaint alleging the chain of employing artificial intelligence-based software in hundreds of locations to identify individuals Rite Aid "deemed likely to engage in shoplifting or other criminal behavior" and either expel or bar them from entering the store, the FTC and Rite Aid reached a settlement on Tuesday. However, due to faulty technology, workers responded to false-positive warnings that mistakenly labeled clients as criminals. Rite Aid personnel have been charged by the FTC of publicly accusing individuals of illegal activities in front of friends, family, and strangers in certain instances.
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