Consumer Group In Australia Complains Three Retailers For Using Facial Recognition Technology On Customers

Major consumer groups have lodged three of Australia's largest retail chains with privacy regulators. (photo: doc. pixabay)

JAKARTA - A major consumer group has brought three of Australia's largest retail chains to the attention of privacy regulators. The group alleges that the retailers are using facial recognition technology that makes "no sense" to customers. The group also recommended enforcement action against the retailer.

CHOICE, in a complaint to the Australian Information Commissioner's Office (OAIC) ​​published on Monday, 27 June said the use of the technology in JB Hi-Fi Ltd's equipment chain The Good Guys as well as hardware chain Bunnings and its Australian subsidiary of big-box retailer Kmart, both owned by Wesfarmers Ltd, is unreasonable and violates privacy laws.

OAIC, JB Hi-Fi and Wesfarmers could not be reached for comment. The retailer previously told local media that they were using this technology for security purposes.

CHOICE regularly contributes to government inquiries involving consumer issues and its website says it plays a role in many regulatory changes such as bans on risky financial products.

In the complaint, CHOICE's policy adviser, Amy Pereira, said facial recognition technology carries "significant risks to individuals" including "invasion of privacy, misidentification, discrimination, profiling and exclusion, as well as vulnerability to cybercrime through data breaches and identity theft." .

"CHOICE urges you as Commissioner to investigate this matter further and consider taking enforcement action," Pereira said.

Any investigation into this technology case would be the largest in Australia although the OAIC has investigated this matter previously.

In 2021, they ordered Australia's 7-Eleven chain to destroy "fingerprints" collected at 700 convenience stores after setting up an in-store survey on the matter.

They also ordered US software developer Clearview AI, which collects images from social media sites to build profiles of individuals, destroy data and stop the practice in Australia.

The three retail chains involved in the CHOICE complaint alone operate about 800 stores, posting sales of A$25 billion last year.

The consumer group said the three companies collected personal and sensitive information without consent and without clearly disclosing the practice in a policy.

Some stores have signs warning shoppers about the technology, but "customer silence should not be construed as approval" and many have no alternative place to make purchases, CHOICE said.