The Federal Trade Commission (FTC) revealed that Rite Aid used facial recognition technology secretly for almost 10 years. Their utilization of the technology led to the numerous incorrect accusations of customers shoplifting. The FTC investigation discovered that Black and Asian customers were misidentified at higher rates than white customers — and that women experienced more misidentifications than men. Rite Aid allegedly worked alongside two companies to create a database of individuals labeled "persons of interest" based on suspected criminal activity, leading to unwarranted accusations. Although Rite Aid acknowledged the program's use in a few stores, it claimed its discontinuation in 2020.

In response to Rite Aid’s behavior, the FTC issued a settlement prohibiting Rite Aid from employing facial recognition technology in stores or online for the next five years. This settlement signifies a significant regulatory move as it is the first time that the FTC has mandated the cessation of facial recognition usage. The FTC has critiqued Rite Aid's reckless implementation, stating that it heightened risks to sensitive information and exposed customers to humiliation. Even though the FTC did not impose a financial penalty, it established a precedent, highlighting the responsibility of companies utilizing facial recognition technology to ensure fairness and mitigate any potential harms. Rite Aid's compliance with the settlement terms will be overseen by a requirement to implement a robust information security program, overseen by the company's top executives.