FTC’s Rite Aid Order: A Strong Message to Users of Biometrics and AI

The FTC began to regulate AI fairness last month, seizing on an automated facial surveillance scandal at pharmacy chain Rite Aid. The lengthy order (Order) “offers a strong baseline for what an algorithm fairness program should look like” for companies, emphasized Commissioner Alvaro Bedoya. This first installment of a two-part series about the Rite Aid settlement examines the key allegations in the case and the Order’s implications, including three broadly defined terms that could apply to many other biometric uses. Part two will look at four essential compliance measures for companies to consider when using biometric surveillance tools and the FTC’s intensification of its algorithm disgorgement punishments. See “Navigating NIST’s AI Risk Management Framework” (Nov. 15, 2023).

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