Sydney, June 27 (BUS) – A major consumer group has referred three of Australia’s largest retail chains to the privacy regulator, saying it is using “unreasonably intrusive” facial recognition technology on customers and recommending enforcement action.
CHOICE, in a complaint to the Australian Information Commissioner’s Office published on Monday, said the use of the technology in JB Hi-Fi Ltd’s The Good Guys hardware chain as well as hardware chain Bunnings and Australian arm of big retailer Kmart – both owned by Wesfarmers Ltd – was unjustified and infringing Privacy Law.
OAIC, JB Hi-Fi and Wesfarmers were not available for comment. The retailers previously told local media that they used the technology for security purposes.
CHOICE routinely contributes to government inquiries on consumer issues and its website says it has been instrumental in numerous regulatory changes such as bans on risky financial products.
In the complaint, CHOICE policy advisor Amy Pereira said facial recognition technology brought “significant risks to individuals” including “violation of privacy, misidentification, discrimination, profiling and exclusion, as well as exposure to cybercrime through data breaches and identity theft.”
“CHOICE urges you as the commissioner to further investigate this matter and to consider enforcement action,” Pereira said.
Any investigation would be Australia’s largest in technology although the OAIC has looked into the matter before.
In 2021, the Australian chain 7-Eleven was ordered to destroy “faceprints” collected in 700 convenience stores after conducting in-store surveys on the matter. It also ordered US software developer Clearview AI, which collects images from social media sites to build individual profiles, to destroy data and stop the practice in Australia.
The three chains in the CHOICE complaint operate about 800 stores, and booked sales of A$25 billion (US$17 billion) last year.
The consumer group said the three companies collected personal and sensitive information without consent and without explicitly disclosing the practice in a policy.
Choice said that some stores have signs alerting shoppers to the technology, but that “customers’ silence cannot be taken as approval” and not many have an alternative place to make their purchases.