Rite Aid Pulls Plug on Facial-recognition System with China Links

  • Rite Aid (NYSE:RAD) has dismantled a facial-recognition system it installed in 200 stores because it used components linked to a Chinese company, Reuters reported on Tuesday.
Right Now, the Turnaround Hopes for RAD Stock Look Overstated
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  • The system used cameras from DeepCam, which works with China’s Shenzhen Shenmu, a company that is financially backed by a Chinese government fund.
  • The drug store operator said it has stopped using the facial-recognition software. It said it has also switched off the cameras because of “a larger industry conversation” on the use of such technologies.
  • The chain said the system was designed to prevent theft by identifying habitual or convicted offenders, while preemptively asking such people to leave the company’s stores.
  • Earlier this month, in his analysis of RAD’s fiscal first quarter results, InvestorPlace’s Matt McCall wrote that the company seems like it is “finally” header in the right direction, as “new management has reinspired investor confidence.”

Article printed from InvestorPlace Media, https://investorplace.com/2020/07/rite-aid-pulls-plug-on-facial-recognition-system-with-china-links/.

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