Early results positive in New Zealand trial of facial recognition at grocery stores

A trial of facial recognition for retail crime reduction by Foodstuff North Island (FSNI) in New Zealand has wrapped up, with initial results indicating some success in reducing theft and violence against the stores and their employees.

Privacy Commissioner Michael Webster is now evaluating the results of the trial. An independent evaluator that helped design and oversee the trial will also contribute to the analysis. One of the Commissioner’s chief concerns and motivations for the trial is the accuracy of facial recognition for minority populations with darker skin, such as Māori, Pasifika, Indian, and Asian shoppers.

A Māori woman was falsely identified as a shoplifter and confronted by staff at a New World store owned by FSNI in April, which illustrated the risks of neglecting the robust procedures built around the technology.

The Privacy Commissioner notes that 49 percent of New Zealanders are concerned about the use of facial recognition in stores, and 82 percent want the ability to ask for their personal information to be deleted. Compliance with New Zealand’s Privacy Act and the measures taken by the grocery chain to protect privacy are among the areas for evaluation.

Webster also wonders about the technology’s effectiveness, saying: “At the start of the trial we didn’t know whether FRT would do what the stores wanted because the evidence wasn’t clear. I need to know whether the trial has made a significant difference to the incidence of serious retail crime compared with other less privacy intrusive options.”

The trial at 25 New World and PAK’nSAVE locations has resulted in a dramatic reduction in abuse and violence against staff, according to preliminary data announced by the retailer.

FSNI estimates there were 130 less “serious incidents” at the 25 stores over the course of the trial, while retail crime dropped 8 percent.

“We’ve been concerned about the growing trend of our staff or customers being put in harm’s way,” says FSNI CEO Chris Quin. “We’ll wait for the final report, but while the numbers are still far too high, our well-publicised FR trial might have made a real difference.”

During the sixth-month trial, FSNI reported 1,747 alerts. Previously banned individuals were asked to leave in just under half of those situations.

The retailer found employee training to be a key to the program’s success. The company also says its employees feel safer with the system in place, and that a survey of customers shows support from 9 out of 10.

The 25 participating stores will continue using facial recognition, pending the investigation’s findings, which will be announced by the end of 2024.

Article Topics

biometrics  |  facial recognition  |  New Zealand  |  New Zealand Privacy Commissioner  |  retail biometrics