The FTC’s recent settlement (Order) with Rite Aid for discriminatory use of facial surveillance breaks ground by expanding the penalty of algorithm disgorgement to third parties. The Order also supplies other companies with a detailed roadmap for enhancing their safeguards to ensure AI and biometric fairness. This second installment in a two-part series about the settlement discusses four measures for AI and biometric surveillance tool compliance, the Order’s harmonies with the National Institute of Standards and Technology AI Framework and the broader reach of algorithm disgorgement, including a comparison to the FTC’s settlement with X-Mode. Part one
examined the key allegations in the case and the Order’s implications, including terminology that could apply to many other biometric uses. See “Key Legal and Business Issues in AI-Related Contracts
” (Aug. 9, 2023).