Coles and Woolworths test facial recognition technology

Coles and Woolworths, two of Australia’s largest supermarket chains, have tested facial recognition technology in controlled environments, though neither company has confirmed plans to deploy it in stores. The tests come amid growing interest among retailers in leveraging artificial intelligence to address rising concerns around retail crime and employee safety. However, the companies have emphasized that these trials remain preliminary and do not involve real-time monitoring of customers or staff. According to reports, the testing began as part of broader efforts to combat incidents such as aggression, theft, and weapon-related threats in stores. The Australian Financial Review previously noted that both supermarkets had “conducted early testing” of the technology. When questioned by the ABC, Coles clarified that it had not conducted a formal trial involving facial recognition. Instead, the company described the process as a “small, one-off, controlled proof-of-concept test” that did not collect personal data from customers or employees. A Coles spokesperson stated no decision had yet been made regarding the deployment of such technology. Woolworths, meanwhile, reportedly tested the system in its New Zealand office, though the company declined to comment on specifics or whether similar measures might be adopted in Australia. A Woolworths representative focused on the importance of ensuring safety, noting that despite existing initiatives, incidents of aggression and conflict continue to occur regularly in stores. The company did not confirm whether the technology would be implemented domestically. Facial recognition technology has long sparked controversy due to concerns about privacy, accuracy, and bias. Critics argue that the systems often perform poorly for certain demographic groups, leading to higher rates of misidentification. These issues have prompted regulatory scrutiny, particularly in Australia, where the Privacy Commissioner recently issued updated guidance on the use of such technology in public spaces, including retail environments. This guidance came after a landmark ruling in February 2024, in which Bunnings, a major Australian hardware retailer, successfully defended its use of facial recognition technology following a privacy breach investigation. The Administrative Review Tribunal ruled that the technology could be employed under specific conditions to mitigate risks such as violence and theft. This decision potentially sets a precedent for other retailers seeking to adopt similar technologies while adhering to legal standards. Supporters of facial recognition in retail cite the need to protect workers from harm. According to Chris Rodwell, chief executive of the Australian Retail Council (ARC), retail employees face “unacceptable levels of violence, threats, intimidation and abuse” in stores. He argued that responsible use of technology could help identify repeat offenders and prevent future incidents. The ARC has encouraged retailers to explore technological solutions that align with both safety goals and community expectations. The Privacy Commissioner’s updated guidance allows for the use of facial recognition in public areas, provided strict safeguards are in place. This includes transparency about data collection practices, limitations on data retention, and mechanisms to address errors or complaints. Retailers must balance these requirements with the practical demands of maintaining secure workplaces. Data on the prevalence of crime in supermarkets highlights the urgency of finding effective solutions. A survey by the Shop, Distributive and Allied Employees’ Association (SDA), which represents thousands of retail and warehouse workers, revealed that approximately one-third of respondents felt unsafe at work. The findings underscore the pressures faced by frontline staff and the need for robust security measures. While the testing phase continues, the path forward for Coles and Woolworths remains uncertain. Both companies have expressed commitment to exploring technological innovations that enhance safety, but they have not indicated immediate plans to implement facial recognition in stores. As discussions around privacy and security evolve, the decisions made by these retailers could influence broader adoption of the technology across the retail sector.