Bunnings & Kmart pause facial recognition technology while privacy watchdog investigates
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The use of facial recognition technology in supermarkets is a controversial topic. Some believe that it is a necessary security measure to prevent shoplifting, while others believe that it is an invasion of privacy.
There are valid concerns on both sides. Supermarkets are increasingly using facial recognition technology to identify potential shoplifters. This technology can be used to track customers’ movements and behaviour. It could also be used to target ads and track loyalty programs.
We previously reported about how some major retailers installed overhead cameras at self-serve checkouts to keep track of scanning errors that may occur.
Now, fresh reports suggest that retail giants Bunnings and Kmart have suspended the use of facial recognition technology as a national security watchdog investigates the companies' potential data privacy breaches.
Following an investigation that revealed the retailers were utilising the contentious technology, which records customers' faces in-store, consumer advocacy group Choice referred Bunnings, Kmart, and the Good Guys to the Office of the Australian Information Commissioner (OAIC) in June for possible violations of the Privacy Act.
Two weeks after the retailers received the notice about the investigations, The Good Guys put a pause on its facial recognition technology, with both Kmart and Bunnings announcing that they would follow suit on Wednesday to respect the OIAC's ongoing investigation.
Bunnings paused the use of facial recognition technology in its stores amidst an ongoing probe into data privacy breaches. Credit: Getty Images.
Bunnings’ Managing Director Mike Schneider explained: 'We've confirmed to the OAIC that the technology is temporarily switched off in our stores and given an investigation is underway we won't be using it for the time being.'
As it transitions to a new system, Bunnings confirmed that it already temporarily replaced the technology in its retail locations.
Additionally, Mr Schneider alleged Choice of misrepresenting how facial recognition is used by the retailer, claiming that it is done to deter criminal activities.
He said: 'When we have customers berate our team, pull weapons, spit, or throw punches, we ban them from our stores. But a ban isn't effective if it's hard to enforce.'
'Facial recognition gives us a chance to identify when a banned person enters a store so we can support our team to handle the situation before it escalates.'
'For absolute clarity, an individual's image is only retained by the system if they are already enrolled in the database of individuals who are banned or associated with crime in our stores.'
'We don't use it for marketing or customer behaviour tracking, and we certainly don't use it to identify regular customers who enter our stores as Choice has suggested.'
'We're extremely disappointed that Choice has chosen to mischaracterise the issue, especially given the extensive explanations we have provided to them.'
Kmart denied the allegations, claiming that the cameras were only used to prevent store crime. Credit: CHOICE.
A Kmart representative also reiterated that the retailer solely applies the technology to store crime.
'We believe our use of facial recognition technology for the limited purpose of preventing criminal activity such as refund fraud is appropriate and its use is subject to strict controls.'
'We do not use this technology to track customer behaviour or for marketing purposes.'
'We have temporarily stopped the use of this technology in our small number of trial stores given the commencement of the OAIC investigation.'
As advances in technology have made it easier for companies to collect and use our personal information, institutions are working on ensuring that everyone has access to data privacy. While it is not surprising that issues like this are coming to light in recent years, it just shows that we're now living in a digital age and that legislation needs to cope with the changing times.
What do you think? Should facial recognition technology be used in stores?
There are valid concerns on both sides. Supermarkets are increasingly using facial recognition technology to identify potential shoplifters. This technology can be used to track customers’ movements and behaviour. It could also be used to target ads and track loyalty programs.
We previously reported about how some major retailers installed overhead cameras at self-serve checkouts to keep track of scanning errors that may occur.
Now, fresh reports suggest that retail giants Bunnings and Kmart have suspended the use of facial recognition technology as a national security watchdog investigates the companies' potential data privacy breaches.
Following an investigation that revealed the retailers were utilising the contentious technology, which records customers' faces in-store, consumer advocacy group Choice referred Bunnings, Kmart, and the Good Guys to the Office of the Australian Information Commissioner (OAIC) in June for possible violations of the Privacy Act.
Two weeks after the retailers received the notice about the investigations, The Good Guys put a pause on its facial recognition technology, with both Kmart and Bunnings announcing that they would follow suit on Wednesday to respect the OIAC's ongoing investigation.
Bunnings paused the use of facial recognition technology in its stores amidst an ongoing probe into data privacy breaches. Credit: Getty Images.
Bunnings’ Managing Director Mike Schneider explained: 'We've confirmed to the OAIC that the technology is temporarily switched off in our stores and given an investigation is underway we won't be using it for the time being.'
As it transitions to a new system, Bunnings confirmed that it already temporarily replaced the technology in its retail locations.
Additionally, Mr Schneider alleged Choice of misrepresenting how facial recognition is used by the retailer, claiming that it is done to deter criminal activities.
He said: 'When we have customers berate our team, pull weapons, spit, or throw punches, we ban them from our stores. But a ban isn't effective if it's hard to enforce.'
'Facial recognition gives us a chance to identify when a banned person enters a store so we can support our team to handle the situation before it escalates.'
'For absolute clarity, an individual's image is only retained by the system if they are already enrolled in the database of individuals who are banned or associated with crime in our stores.'
'We don't use it for marketing or customer behaviour tracking, and we certainly don't use it to identify regular customers who enter our stores as Choice has suggested.'
'We're extremely disappointed that Choice has chosen to mischaracterise the issue, especially given the extensive explanations we have provided to them.'
Kmart denied the allegations, claiming that the cameras were only used to prevent store crime. Credit: CHOICE.
A Kmart representative also reiterated that the retailer solely applies the technology to store crime.
'We believe our use of facial recognition technology for the limited purpose of preventing criminal activity such as refund fraud is appropriate and its use is subject to strict controls.'
'We do not use this technology to track customer behaviour or for marketing purposes.'
'We have temporarily stopped the use of this technology in our small number of trial stores given the commencement of the OAIC investigation.'
As advances in technology have made it easier for companies to collect and use our personal information, institutions are working on ensuring that everyone has access to data privacy. While it is not surprising that issues like this are coming to light in recent years, it just shows that we're now living in a digital age and that legislation needs to cope with the changing times.
What do you think? Should facial recognition technology be used in stores?