Rite Aid agrees to 5-year ban on facial recognition

(CNN)– Rite Aid is now banned from using facial recognition technology for the next five years.

The pharmacy reached a settlement with the Federal Trade Commission after the agency found Rite Aid use the software to unfairly target people of color.

The FTC says the company used facial recognition in hundreds of stores to identify people likely to engage in shoplifting.

The technology led employees to act on false positive alerts and wrongly identified customers as criminals.

Rite Aid says it is pleased to reach an agreement with the FTC but it disagrees with the allegations.