Australia’s leading consumer advocacy group has raised serious concerns about leading retailers Kmart, Bunnings and The Good Guys using facial recognition technology to record customers’ facial prints.
A CHOICE survey found that 76 per cent of Australians are unaware that retailers are registering their faces, and Kmart and Bunnings only warn customers of the security measure by means of small signs at entrances.
CHOICE has announced that it is referring retailers to the Office of the Information Commissioner of Australia (OAIC) to investigate possible breaches of the Privacy Act.
Kmart informs customers of the technology through small signs at the entrance. (Choice)
The advocacy group also calls on the federal government to implement a regulatory framework that protects consumers from harmful and unfair practices.
CHOICE consumer data advocate Kate Bower has criticized retailers who use facial recognition technology on customers as “completely inappropriate and unnecessary.”
“Using facial recognition technology in this way is similar to Kmart, Bunnings, or The Good Guys that pick up your fingerprints or DNA every time you shop,” Bower said.
“Companies that use invasive technologies to capture sensitive biometric information from their customers are unethical and a safe way to erode consumer confidence.”
Sydney University of Technology professor Edward Santow, a former Australian Commissioner for Human Rights, has said that facial recognition technology raises serious questions about privacy.
Bunnings records customer facial prints. (Janie Barrett)
“Although this technology was perfectly accurate, and it is not, but even if it was, it also brings us into the realm of mass surveillance,” he said.
“And I think there will be a great deal of concern in the Australian community to walk this path.”
Bunnings chief operating officer Simon McDowell said Bunnings “disagrees with CHOICE” as the technology is one of several measures used to keep staff and customers safe.
“Our use is only for the purpose of preventing situations of threat and theft, which is consistent with the Privacy Act,” he said.
“In selected stores, our CCTV systems use facial recognition technology, which is used to help prevent theft and support the security of our computer and customers.
“In recent years, we’ve seen an increase in the number of difficult interactions our team has had to deal with in our stores, and this technology is an important tool to help us prevent repeated team abuse and of customers “.
The Good Guys use facial recognition technology. (AAP)
McDowell also responded to CHOICE’s request for comment, while CHOICE said Kmart and The Good Guys did not respond to their inquiries.
Retailers report on their use of facial recognition in the privacy policy of their websites, as well as Kmart and Bunnings displaying small signs on store entrances.
However, CHOICE argues that retailers are not doing enough to alert customers to the security measure.
“Discreet signage and online privacy policies are not enough to adequately inform shoppers that this controversial technology is in use,” Bower said.
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“Technology is capturing very personal data from customers, including babies and children.”
CHOICE surveyed more than 1,000 Australians between March and April 2022 to measure consumer awareness of facial recognition technology, and 76% of people said they did not know that retailers were using facial recognition.
Those who suspected that it was being misused referred to Coles and Woolworths as using the technology.