New Zealand Consumers Show Support for Facial Recognition in Retail

New research commissioned by Foodstuffs North Island (FSNI) reveals a positive attitude among New Zealand consumers toward the use of facial recognition (FR) in retail settings, despite potential privacy concerns. The survey, conducted as part of FSNI’s six-month trial of FR technology in 25 New World and PAK’nSAVE stores, found that more than half of respondents supported the use of FR, even when its impact on reducing harm from retail crime was perceived to be minimal.

The trial, initiated in February, was designed to evaluate FR’s effectiveness in identifying repeat offenders and improving the safety of customers and staff. According to Julian Benefield, FSNI’s General Counsel, understanding consumer sentiment was key to ensuring the technology aligns with customer expectations. “Keeping our team members and customers safe and well is always our top priority,” Benefield emphasized, adding that the company aims to balance safety with its commitment to being a customer-focused retailer.

Survey findings suggest that many New Zealanders are concerned about retail crime, with 63 percent of respondents reporting they have witnessed incidents such as physical assaults, verbal abuse, or disorderly conduct in stores. Alarmingly, 44 percent said they had personally experienced harm, underscoring the need for effective measures to mitigate retail crime. Benefield noted that the FR system is designed to be used responsibly, ensuring that human oversight remains central to decision-making. When a match is detected with 90 percent accuracy, it triggers alerts to two specially trained staff members, both of whom must independently verify the identification before any action is taken.

The implementation of FR has been accompanied by thorough oversight to address privacy concerns. An independent analytics firm, Scarlatti, has been monitoring the trial’s progress, and FSNI has engaged with New Zealand’s Office of the Privacy Commissioner, which is conducting a public inquiry into the initiative. The inquiry’s findings will play a critical role in determining whether FR technology will be expanded across FSNI’s retail network.

The trial has already demonstrated tangible benefits, with FSNI reporting that the facial recognition technology has prevented 130 serious incidents and improved safety for both customers and staff. The technology generated 1,747 alerts, with store staff taking action in nearly half of the cases. Despite these successes, concerns about potential biases have been raised, particularly after a Māori woman was misidentified, prompting Privacy Commissioner Michael Webster to call for further investigation.

While privacy remains a topic of discussion, the survey indicates that many consumers are willing to accept FR in retail if it enhances safety and reduces harm. Benefield expressed confidence in the trial’s approach, which prioritizes transparency and aligns with public sentiment. “Most of the shoppers surveyed didn’t have a problem with the use of facial recognition… if it can reduce harm to shoppers and retail staff,” he said.

As FSNI awaits the Privacy Commissioner’s report, the trial highlights a broader trend of cautious yet growing acceptance of facial recognition technology in retail.

Source: Supermarket News

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November 29, 2024 – by Cass Kennedy