Special Report: Rite Aid Deployed Facial Recognition Systems in Hundreds of U.S. Stores

"This decision was in part based on a larger industry conversation," the company told Reuters in a statement, adding that "other large technology companies seem to be scaling back or rethinking their efforts around facial recognition given increasing uncertainty around the technology's utility." Reuters pieced together how the company's initiative evolved, how the software has been used and how a recent vendor was linked to China, drawing on thousands of pages of internal documents from Rite Aid and its suppliers, as well as direct observations during store visits by Reuters journalists and interviews with more than 40 people familiar with the systems' deployment. Most current and former employees spoke on condition of anonymity, saying they feared jeopardizing their careers. While Rite Aid declined to disclose which locations used the technology, Reuters found facial recognition cameras at 33 of the 75 Rite Aid shops in Manhattan and the central Los Angeles metropolitan area during one or more visits from October through July. The cameras were easily recognizable, hanging from the ceiling on poles near store entrances and in cosmetics aisles.