03-06-2025
Foodstuffs successfully trials facial recognition — but concerns remain
A trial of live facial recognition technology in supermarkets has been determined successful, although not without concerns.
Privacy Commissioner Michael Webster said in a statement released this morning that the trial run by Foodstuffs North Island complied with the Privacy Act. However, he warned improvements would be needed before it could be used permanently or expanded to more stores.
The commissioner launched an inquiry to understand the privacy impact of facial recognition technology, check its compliance with the Privacy Act to look at whether it was effectivel for reducing serious retail crime compared to less privacy-intrusive options.
The trial, which ran from across 25 supermarkets from February 8 to September 7, scanned 225,972,004 faces. There were 1742 alerts, of which 1208 were confirmed matches.
General counsel for Foodstuffs North Island Julian Benefield said the trial demonstrated that facial recognition could help reduce harm while respecting peoples privacy.
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"Our trial prevented more than 100 serious harm incidents, including assaults, with a 16% reduction in harm being demonstrated," Benefield said.
The inquiry found the level of privacy intrusion was high because every visitors' face was collected but Foodstuff's "privacy safeguards used in the trial reduced it to an acceptable level", the privacy commissioner said.
The main privacy safeguards Foodstuff put into place during the trial were:
Images that did not result in a positive match were deleted immediately
The system only identified people who had engaged in seriously harmful behaviour
Staff were not permitted to add images of children or young people under 18, or people thought to be vulnerable
There was no sharing of watchlist information between stores
The threshold that triggered an racial recognition alert was raised from 90% to 92.5% likelihood of the images matching
Match alerts were verified by two trained staff
Access to the system and information was restricted to trained authorised staff only
Images collected were not permitted to be used for training data purposes
Systems were reviewed and improved during the trial where misidentifications or errors occurred.
'Many' privacy concerns
Webster said the trial showed that the technology was effective at reducing harmful behaviour but "it has also shown that there are many things that need to be taken into account".
Any business considering using the technology needed to ensure it was appropriately set up to comply with the law to avoid "significant privacy concerns" which were "particularly critical" when people needed to access essential services such as supermarkets.
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This included "the unnecessary or unfair collection of people's information, misidentification, technical bias which can reinforce existing inequities and human bias, or the ability to be used for surveillance".
Webster said that because the facial recognition software was developed overseas, it had not been tested on the New Zealand population and could not be confident that there were no technical bias issues, including potential negative impacts on Māori and Pacific peoples.
Improvements to facial recognition, such as ongoing reviews of the technology and updated system settings, would need to be made before it could be used permanently or expanded to more stores Webster said.
Benefield said that "keeping our teams and customers safe is our top priority".
"We welcome the feedback on areas for improvement and will carefully consider their recommendations, including the need to monitor accuracy, before we make any decisions about future permanent use."
"The trial findings will help other businesses to ask the right questions about whether facial recognition technology is necessary and appropriate for them and to understand what they would need to do to set facial recognition technology up and run it in a privacy-protective way."
Consumer NZ chief executive Jon Duffy. (Source: 1News)
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'Extensive measures' to manage the risks — Consumer
Consumer NZ chief executive Jon Duffy said it was pleasing to see the Privacy Commissioner's inquiry acknowledge many concerns raised on behalf of consumers who have had their information collected as part of this deployment.
"We will be reading the inquiry report with interest in the coming days, particularly the strength of the evidence put forward to convince the regulator that the technology has prevented in-store harm events before they occurred."
The organisation emphasised the finding that the use of live facial recognition technology would be justifiable only if privacy risks were successfully managed.
"We note the extensive measures Foodstuffs has needed to put in place to satisfy the Office of the Privacy Commissioner that it can manage the significant privacy risks the technology poses.
"Businesses without Foodstuff's scale and financial resources may struggle to satisfy the requirements of the Privacy Act in the same way and should take expert advice before proceeding."