Privacy Commissioner Michael Webster is now evaluating the results of Foodstuff North Island’s trial of Facial Recognition Technology (FRT) to better understand its privacy impacts and compliance with the Privacy Act.

The Commissioner announced his Inquiry into FRT use in 25 supermarkets in April this year after Foodstuffs North Island sought to use FRT to help reduce retail crime.

The Inquiry has involved working with Foodstuffs staff in head office, as well as visits to 10 stores by Office of the Privacy Commissioner staff. The visits helped clarify how this technology practically works in stores, and what results are being seen.

"Like everyone, we want people to be safe as they shop or work. My interest is also ensuring that customers can shop with a clear understanding of how and when their personal information is being collected and used, so they can make choices based on that".

The Office of the Privacy Commissioner will review its own data alongside the results from the independent evaluator who designed and oversaw the trial.

A key aspect of the Commissioner’s Inquiry is to make sure the use of FRT is compliant with the Privacy Act and that the privacy and data protection safeguards and controls that Foodstuffs North Island have in place can manage privacy risks.

Regardless of what information-collecting technology is used, it still requires an element of human action. Staff in store still need to approach customers they think have been stealing. People have emotional, sometimes violent reactions, and technology won’t change that.

The Commissioner stated at the announcement of the trial that he had concerns about racial bias and how the use of FRT might impact Māori, Pasifika, Indian, and Asian shoppers especially because the software is not trained on New Zealand’s population. Examining how the use of FRT in trial stores impacts on these shoppers is part of our assessment.

"The retail sector has always innovated to keep customers safe because often greater customer trust equals a strong brand, which equals more sales. I’m not saying don’t innovate, but instead let’s be clear about the consequences of the technology you’re choosing before you go ahead."

"I know from our latest privacy survey of New Zealanders that they’re more concerned about privacy issues than they were two years ago. Almost half (49%) had concerns about the use of FRT in retail stores to identify individuals and 82% want the right to ask a business to delete their personal information.

"That says to me that New Zealanders are aware, and they care about their privacy. They want to have ownership and control over their sensitive and personal information.

"At the start of the trial we didn’t know whether FRT would do what the stores wanted because the evidence wasn’t clear. I need to know whether the trial has made a significant difference to the incidence of serious retail crime compared with other less privacy intrusive options."

"My review of the information we’ve collected, and the independent evaluator’s report will likely clarify that and give New Zealanders a clear idea of the way forward.

The Commissioner expects to announce his findings before the end of this year.

Note:

- The Privacy Commissioner announced his Inquiry into FRT in April 2024: https://privacy.org.nz/publications/statements-media-releases/inquiry-into-foodstuffs-north-islands-frt-trial-starts-today/

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