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Rite Aid reaches settlement with FTC over use of facial recognition

The settlement agreement with the FTC concerns Rite Aid's historical use of facial recognition technology to prevent retail theft.
Levy

Rite Aid has reached a comprehensive settlement agreement with the U.S. Federal Trade Commission regarding the company’s historical use of facial recognition technology to prevent retail theft and issues relating to the company’s compliance with a 2010 Commission Order.

Rite Aid issued the following statement:

“We are pleased to reach an agreement with the FTC and put this matter behind us. We respect the FTC’s inquiry and are aligned with the agency’s mission to protect consumer privacy. However, we fundamentally disagree with the facial recognition allegations in the agency’s complaint. The allegations relate to a facial recognition technology pilot program the company deployed in a limited number of stores. Rite Aid stopped using the technology in this small group of stores more than three years ago, before the FTC’s investigation regarding the company’s use of the technology began."

Rite Aid said its mission has always been and will continue to be to safely and conveniently serve the communities in which it operates. 

[Read more: Rite Aid shares progress on sustainability efforts]

“The safety of our associates and customers is paramount. As part of the agreement with the FTC, we will continue to enhance and formalize the practices and policies of our comprehensive information security program. Looking ahead, we are focused on the important actions underway to strengthen our financial position as we continue providing leading healthcare products and services to the nearly one million customers that we serve daily,” Rite Aid said.

The settlement with the FTC is subject to approval by the U.S. Bankruptcy Court overseeing Rite Aid’s ongoing restructuring and the U.S. Federal District Court in which the FTC filed its complaint.

[Read more: Rite Aid pharmacists gain prescriptive authority for hormonal contraceptives in 5 states]

In a separate development, Rite Aid provided Drug Store News with a statement that said, "On Dec. 19, 2023, the Court granted Rite Aid final approval to access its $3.45 billion debtor-in-possession (DIP) financing, which we received from certain of our lenders. This financing is expected to support the business throughout the debt restructuring process. We are pleased with the progress we are making to financially strengthen our company, operate our business and serve our customers."

 

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