Rite Aid Pharmacy Banned From Using AI Facial Recognition

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Facts

  • The US Federal Trade Commission (FTC) on Tuesday prohibited Rite Aid from using artificial intelligence-based facial recognition technology for five years in an agreement that settles charges that the bankrupt pharmacy chain's AI technology harmed consumers.1
  • Rite Aid reportedly used facial recognition technology for surveillance purposes, but the FTC claims that the system misidentified thousands of customers as potential shoplifters, disproportionately affecting non-White shoppers.2
  • The FTC filed a complaint in federal court arguing that Rite Aid’s facial recognition also matched customers with people who were enrolled in the database based on activity thousands of miles away and flagged the same person at dozens of stores across the country.3
  • Rite Aid said that it 'respects the FTC’s inquiry' and welcomes its agreement with the regulator; however, the pharmacy rejected the agency’s allegations. Rite Aid says that it only implemented a pilot surveillance program in a limited number of stores and stopped using the technology over three years ago.4
  • Rite Aid reportedly used the system from 2012 to 2020, with the FTC saying the pharmacy violated a 2010 agreement by failing to protect sensitive financial and medical information. Tuesday’s agreement requires Rite Aid to take safety measures such as deleting photos taken by the AI software and informing customers when their likeness is logged into a database and when AI technology is being used.5
  • The agreement comes as Rite Aid navigates massive shake-ups after filing Chapter 11 bankruptcy protection in October. The struggling pharmacy’s proposed settlement is subject to approval by the bankruptcy court.6

Sources: 1CNN, 2Associated Press, 3FOX News, 4Boston 25 News, 5ABC News and 6CNBC.

Narratives

  • Progressive narrative, as provided by Amnesty International Canada. Rite Aid’s settlement is yet another example of how AI is riddled with structural racism, just like society at large is. Rite Aid’s facial recognition software produced thousands of false positives, mostly by misidentifying people of color, putting marginalized groups at further risk. This issue isn't exclusive to the pharmacy, as countless studies show that AI has a racial bias and is discriminatory. AI needs an overhaul to prevent such practices before it can be a prominent part of society.
  • Conservative narrative, as provided by American Spectator. While AI may be a novel development that brings new issues to the forefront, it can't escape America’s favorite pastime: complaining about racism. Despite racism being legally and morally weeded out of the West, the mainstream media loves to play up any instance of perceived bias. The left has been brainwashed into thinking that group differences don’t exist and that any unequal outcomes are purely caused by social factors. AI doesn’t buy this woke falsehood yet, which is why it's falsely dubbed “racist.”