Three of Australia's biggest retail chains have been reported to the privacy regulator by a significant consumer group, which claims that they are employing "unreasonably intrusive" face recognition technology on their consumers and has called for enforcement action.
We were recently reminded of this reality when consumer advocates at CHOICE disclosed that big Australian shops are utilizing the technology to identify individuals allegedly involved in theft and troublemaking.
The intention to lessen harm and theft is beyond question. However, there is also a lack of openness on the application of this technology.
CHOICE claimed in a complaint to the Office of the Australian Information Commissioner (OAIC) that the use of technology at hardware retailer Bunnings, big-box retailer Kmart, and the Australian branch of JB Hi-Fi Ltd's appliances chain The Good Guys, all of which are owned by Wesfarmers Ltd, was unwarranted and in violation of privacy law.
Wesfarmers, JB Hi-Fi, and the OAIC declined to comment. The stores previously disclosed to the neighborhood media that they utilize the system for security.
On its website, CHOICE claims that it regularly contributes to government probes into consumer issues and that it played a key role in several legislative improvements, such as the prohibition of dangerous financial products.
In the complaint, CHOICE policy adviser Amy Pereira said facial recognition technology brought "significant risk 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 added.
Even though the OAIC has previously looked into the issue, any inquiry would be Australia's largest into the technology.
After conducting in-store surveys on the subject, it issued a 2021 ruling requiring the Australian 7-Eleven chain to remove "faceprints" gathered at 700 convenience outlets. Additionally, it has commanded American software company Clearview AI, which builds profiles of people using photographs from social networking networks, to delete data and discontinue the activity in Australia.
About 800 outlets are operated by the three chains included in the CHOICE lawsuit, which generated sales of A$25 billion ($17 billion) last year.
The consumer group claimed that the three companies acquired sensitive and personal data without customers' permission and without explicitly revealing the practice in a policy.
Although some shops have signs warning customers about the technology, "customers' silence cannot be construed as consent" and many had nowhere else to buy their goods, according to CHOICE.
