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The Federal Trade Commission (FTC) announced on Tuesday that Rite Aid is prohibited from using artificial intelligence (AI) facial recognition technology for five years as part of a settlement over misuse concerns.

This decision, aimed at curbing potential shoplifting, comes after the FTC accused the drugstore company with failing to implement adequate procedures and safeguarding consumer interests while utilizing facial recognition technology.

Samuel Levine, director of the FTC’s Bureau of Consumer Protection, criticized Rite Aid’s handling of facial surveillance systems. He stated in the press release, “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. 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.”

Additionally, the FTC’s release detailed a federal court complaint filed against Rite Aid, which accused Rite Aid of failing “to consider or address foreseeable harms to consumers flowing from its use of facial recognition technology,” failing “to test or assess the technology’s accuracy before or after deployment,” failing “to enforce image quality standards that were necessary for the technology to function accurately,” and failing “to take reasonable steps to train and oversee the employees charged with operating the technology in Rite Aid stores.”

The five-year ban on AI facial recognition use represents a broader regulatory effort to ensure responsible use of emerging technologies and protect consumer rights.