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Kmart's use of facial recognition to tackle refund fraud unlawful

6 hours ago
https://www.oaic.gov.au/news/media-centre/18-kmarts-use-of-facial-recognition-to-tackle-refund-fraud-unlawful,-privacy-commissioner-finds
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  • #retail
  • #privacy
  • #facial_recognition
  • Kmart Australia breached privacy by using facial recognition technology (FRT) to collect biometric data without consent.
  • FRT was deployed in 28 stores from June 2020 to July 2022 to combat refund fraud, capturing faces indiscriminately.
  • The Privacy Commissioner found the collection disproportionate, citing less intrusive alternatives and limited effectiveness.
  • Kmart argued an exemption under the Privacy Act for tackling unlawful activity, but the Commissioner rejected this claim.
  • This follows a similar ruling against Bunnings in 2024 for FRT use in 62 stores, currently under tribunal review.
  • The decisions emphasize balancing privacy rights with business needs, without banning FRT outright.
  • The OAIC provides guidance on assessing privacy risks for FRT, stressing proportionality and transparency.
  • Kmart ceased FRT use in 2022 and cooperated with the investigation.
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