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FTC v. Rite Aid — Enforcement Against Biased AI Facial Recognition in Pharmacy Setting

United States (Federal) | FTC Consent Order (December 2023)

Year Enacted
2023
Date Signed
Dec 19, 2023
Effective Date
Dec 19, 2023
Status
Enacted
FTC consent order; five-year ban on facial recognition; established algorithmic disgorgement as standard remedy

Categories

Other

Key Requirements

Prohibited Rite Aid from using facial recognition technologies for five years. Required destruction of all photos, videos, and data, models, or algorithms derived therefrom (algorithmic disgorgement). If resumed after five years, must operate under detailed governance program.

Regulated Parties

Rite Aid Corporation (retail pharmacy); establishes precedent for all healthcare-adjacent companies using AI surveillance

Enforcement

FTC under Section 5 of the FTC Act (unfair or deceptive practices)

Sources

Secondary https://www.ftc.gov/news-events/news/press-releases/2023/12/rite-aid-banned-using-ai-facial-recognition-after-ftc-says-retailer-deployed-technology-without

Notes

Landmark precedent: first FTC enforcement against biased AI. Found AI facial recognition disproportionately affected Black, Asian, Latino, and women consumers. Established algorithmic disgorgement as standard FTC remedy.

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