ChinaConsumer goods2020–2021Kohler China
Facial recognition for store traffic measurement
Kohler removed facial-recognition equipment from 222 Chinese stores and received a CNY 500,000 fine
Problem
Kohler wanted more accurate store traffic counts to support sales planning. The system removed staff and repeat visitors from the count by comparing facial information.
Approach
Following a February 2020 contract, Wandianzhang installed cameras in Kohler's dealer stores and processed facial images on cloud servers. Shanghai's Jing'an market regulator found that Kohler had collected facial information without consumers' consent. After CCTV reported the practice in March 2021, Kohler apologized, the stores removed the equipment, and the vendor deleted the associated data. The regulator imposed a CNY 500,000 fine in July 2021 and recorded that the information had been used for traffic counting rather than sold.
Results
Takeaway
The purpose was routine traffic measurement, but the method required collecting customers' facial information. The regulator found that this collection needed consent even though Kohler had not sold the information.
Categories
- Size
- Large enterprise
- Industry
- Consumer goods
- Business function
- Marketing and salesProduction and quality
- Innovation type
- Process innovation
- AI technology
- Computer vision
- Adoption
- Vendor solution
- Evidence
- Regulator, audit or court
Sources
Source summaries
The reproduced decision documented the contract, processing method and lack of consent. It recorded 2,202,264 facial-information records, removal of equipment from 222 stores on March 15 and 16, deletion of the data, and a CNY 500,000 fine.
The report described collection between February 2020 and March 2021 and the regulator's fine. It reported that Kohler apologized after CCTV's coverage and arranged overnight removal of the equipment.
Full details are in the original sources.
