Consumer NZ says Foodstuffs North Island – which includes Pak’nSave, New World, and Four Square – is the only major retailer in the country using facial recognition technology to scan shoppers’ faces, and its use raises significant ethical and privacy concerns.
Foodstuffs announced it was using facial recognition technology in many of its stores earlier this week. But it turns out it may have been pre-empting the release of Consumer’s concerns.
“Aside from our sensitive personal information being captured without our knowledge, we also need to consider how our biometric data is stored once a retailer collects it,” said Jon Duffy, CEO at Consumer.
Foodstuffs North Island told the watchdog it believes using facial recognition technology (FRT) is justified as a crime prevention measure to help keep its customers and employees safe.
“Based on our inquiries, no other major retailer in New Zealand is currently using facial recognition technology. If other retailers can operate their businesses effectively without using FRT, why can’t Foodstuffs North Island?” asked Duffy.
An FRT system can match a human face from a digital photo or a video frame against a database of faces. Such a system is primarily used to authenticate users through ID verification services and works by scanning and measuring facial features.
“We question whether collecting customers’ biometric data is proportionate to the risk Foodstuffs is trying to address,” Duffy added.
“We’re in the earliest phases of artificial intelligence, and there are concerns around the accuracies of these systems, particularly with how accurate it is when applied to certain groups in our society.”
“We know Foodstuffs has been questioned about its use of facial recognition technology by the media in 2018 and 2020,” said Duffy.
In 2018 the Otago Daily Times reported the company discretely introduced the technology in its stores. While in August 2020, New World Papakura hit the headlines when customers were asked to take off their masks to allow their faces to be captured by the tech.
Concerns about the unethical use of FRT have also been raised by the watchdog’s Australian counterpart, Choice, and the investigation resulted in the suspension of this technology in retailers, including Kmart, Bunnings, and The Good Guys.
Recent research by the Office of the Privacy Commissioner found 49 per cent of adults in New Zealand, and up to 51 per cent of Māori adults, were concerned with using FRT in public locations.
“Shoppers deserve to know if their images are being captured as they go shopping,” said Duffy.
“We know consumers have limited choice where they shop. Consumer NZ questions the validity of using this technology at an essential shopping outlet, like a supermarket.”
At present, the only way a consumer can find out if Foodstuffs has stored their biometric data is to make a request to the cooperative under the Privacy Act.
