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Australia

Kmart breached shoppers’ privacy with facial tech

18 September 2025 11:12 | News

Retail giant Kmart ping to violate the privacy of shoppers by scanning the faces of unaware customers who have returned products in dozens of stores.

Privacy Commissioner Carly Kind violated the company after collecting people’s personal and sensitive information through a facial recognition technology (FRT) system designed to combat the refund fraud.

Between June 2020 and July 2022, KMART used technology in 28 of their stores to capture everyone who lined up on a return bench.

The commissioner said on Thursday, “A technology such as face recognition is also a public interest in the protection of privacy,” he said.

“(KMART), I don’t think he may have believed that the benefits of addressing the refund fraud on the privacy of individuals in proportion to the privacy of individuals.”

KMART argued that it is not necessary to obtain customer consent due to exemption from the Privacy Law, which allows information to be collected to deal with illegal activity or serious abuse.

However, after a three -year investigation, he found that each individual entering a commissioner store was “randomly gathered by the face recognition system of precise biometric information.

Authorized, reimbursement fraud to address the KMART for less interventionist methods, he said.

The commissioner said that the volumes of biometric data collected on thousands of individuals show a “confidentiality disproportionate intervention”.

KMART has been ordered not to use the face recognition technology and will have to publish an apology to customers in the stores and website within 30 days.

Wesfarmers’a company, face recognition technology “limited trial” decision was disappointed and reviewed options, he said.

The knowledge of each individual entering a store was “randomly gathered”. (Bianca de marchi/aap photos)

In a statement, he said that the controls were made to protect the privacy of customers during the program.

“Images only matched the image of a person who is interestingly suspected or known to be a refund fraud.” He said.

The detection is the second published by the Australian Information Commissioner Office for the use of face recognition in retail environments.

In October, the Wesfarmers’s hardware chain Bunings was found to be contrary to the privacy of shoppers in 62 stores. Also the finding is attractive.


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