AustraliaRetail and e-commerce2020–2025Kmart Australia
Facial recognition at store entrances and returns counters to catch refund fraud
Australian Privacy Commissioner finds Kmart's facial recognition in 28 stores broke privacy law
Problem
From June 2020 to July 2022 Kmart captured and analysed the faces of everyone entering 28 stores and everyone at returns counters. It did not tell shoppers or ask consent.
Approach
The Commissioner found the collection disproportionate. It hit many thousands of people not suspected of fraud, less intrusive methods existed and the system had limited use against refund fraud. Kmart stopped the system in July 2022 when the investigation began. The determination is under review at the Administrative Review Tribunal.
Results
Takeaway
The Commissioner found the scanning disproportionate because it affected customers not suspected of fraud and less intrusive methods existed.
Categories
- Size
- Large enterprise
- Industry
- Retail and e-commerce
- Business function
- Production and qualityFinance, risk and legal
- Innovation type
- Process innovation
- AI technology
- Computer vision
- Adoption
- Vendor solution
- Goal
- Quality and risk
- Evidence
- Regulator, audit or court
Sources
Source summaries
The Commissioner found Kmart's facial recognition disproportionate because it captured customers not suspected of fraud and less intrusive methods existed. Kmart stopped using it in July 2022.
Full details are in the original sources.
