Retailers’ face-off

Customer data haul unveiled

RETAIL giants Kmart, Bunnings and The Good Guys are scanning their customers’ faces in stores, an investigation has revealed, even though most consumers have no idea the technology is being used.

A Choice study of Australia’s 25 biggest retailers found the three major outlets used in-store video systems to create “faceprints” of customers, even though only two displayed small warnings to customers – a measure labelled by a Choice spokeswoman as “not nearly enough”.

The revelation comes months after US chain 7-Eleven was found to have breached Australia’s Privacy Act by deploying facial recognition technology in stores without clear customer warnings.

Choice consumer data advocate Kate Bower said the collection of biometric data of in-store consumers was “a completely inappropriate and unnecessary use of the technology”.

“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,” Ms Bower said, adding the practice was “unethical” and “a sure way to erode consumer trust”. But Bunnings’ chief operating officer Simon McDowell defended the practice.

“At selected stores it is used to help prevent theft and support the safety of our team and customers,” he said.

“This technology is an important tool in helping us to prevent repeat abuse of team and customers.”

Choice also surveyed more than 1000 Australian households and found three in four people were unaware retailers were capturing their “faceprints,” and were concerned about how companies would use or store the information.

Four in every five people surveyed also said retailers should “properly inform” customers that facial recognition technology was being used.

Ms Bower said Kmart and Bunnings did “display small signs” warning about the use of the technology but the notes were easy to miss.

Kmart’s “conditions of entry” warned customers bags and receipts may be checked and told customers stores had “24-hour CCTV coverage, which includes facial recognition technology”. The Good Guys only revealed its use of “facial and feature recognition technology” in a privacy policy on its website.

“Discreet signage and online privacy policies are not nearly enough to inform shoppers,” Ms Bower said.

Choice referred use of the technology to the Office of the Australian Information Commissioner for investigation.

The latest referral comes after the OAIC’s ruling in November 2021 that 7-Eleven “interfered with the privacy of individuals by collecting facial images and faceprints”.

Faces were scanned by tablet computers collecting customer feedback, with data shared with a third party, including “non-blurred images”.