A CHOICE investigation into Australia’s 25 biggest and most trusted retailers has revealed that Kmart, Bunnings and The Good Guys are using facial recognition technology to identify customers who enter selected stores.
Facial recognition analyses images from video cameras to capture each person’s unique facial features, known as a faceprint.
“The use of facial recognition by Kmart, Bunnings and The Good Guys is a completely inappropriate and unnecessary use of the technology. To make matters worse, we found 76% of Australians aren’t aware that retailers are capturing their unique facial features in this way,” says CHOICE consumer data advocate, Kate Bower.
“Using facial recognition technology in this way is similar to Kmart, Bunnings or The Good Guys collecting your fingerprints or DNA every time you shop. Businesses using invasive technologies to capture their customers’ sensitive biometric information is unethical and is a sure way to erode consumer trust.”
Between March and April 2022, CHOICE canvassed more than 1,000 Australians in a nationally representative survey to gauge consumer awareness of facial recognition technology.
The results indicate that most people are in the dark. More than three in four respondents (76%) said they didn’t know retailers were using facial recognition.
Those who suspected it was being used wrongly named Coles and Woolworths as the most likely culprits.
CHOICE’s survey also revealed:
- More than four in five (83%) agreed retailers must properly inform customers about their use of facial recognition technology.
- Nearly four in five (78%) had concerns about how their biometric data was being stored.
- Three in four (75%) were concerned companies would use their data to create customer profiles for the purposes of marketing or profit.
“CHOICE observed that Kmart and Bunnings display small signs at the entrance of stores where the technology is in use. However, discreet signage and online privacy policies are not nearly enough to adequately inform shoppers that this controversial technology is in use. The technology is capturing highly personal data from customers, including infants and children,” says Bower.
Edward Santow is a professor at the University of Technology Sydney who focuses on the responsible use of technology. As a former Australian Human Rights Commissioner, he also led work on artificial intelligence. Santow says facial recognition technology raises serious questions for our society.
“Even if that technology was perfectly accurate, and it’s not, but even if it were, it also takes us into the realm of mass surveillance,” he says.
“And I think there will be great concern in the Australian community about walking down that path.”
Bunnings’ chief operating officer, Simon McDowell told CHOICE that facial recognition was one of several measures the retailer has in place to prevent theft and anti-social behaviour.
“At selected stores our CCTV systems utilise facial recognition technology, which is used to help identify persons of interest who have previously been involved in incidents of concern in our stores,” he says.
“This technology is an important measure that helps us to maintain a safe and secure environment for our team and customers.
“We let customers know about our use of CCTV and facial recognition technology through signage at our store entrances and also in our privacy policy, which is available on our website.
“It’s really important to us that we do everything we can to discourage poor behaviour in our stores, and we believe this technology is an important measure that helps us to maintain a safe and secure environment for our team and customers,” said Mr McDowell.
Kmart and The Good Guys didn’t respond to questions from CHOICE about their reasons for using facial recognition technology. The Good Guys’ privacy policy claims the use of the technology is for the purposes of security, theft prevention, and managing and improving the customer experience.
CHOICE is referring the retailers to the Office of the Australian Information Commissioner (OAIC) to investigate potential breaches of the Privacy Act, and calling on the Federal government to implement a modern regulatory framework that protects consumers from harmful and unfair practices.
“CHOICE is concerned that Australian businesses are using facial recognition technology on consumers before Australians have had their say on its use in our community. With the government currently undergoing a review of the Privacy Act, now is the perfect time to strengthen measures around the capture and use of consumer data, including biometric data,” says Ms Bower.
