Coles and Woolworths test facial recognition technology

By Daniela Pizzirani

By Dannielle Maguire

Topic:AI

Coles and Woolworths have rolled out AI facial recognition technology testing. (ABC News: Charlie McLean)

In short:

Coles and Woolworths have tested facial recognition technology in a bid to combat retail crime.

Neither of the supermarket giants have said if it would be rolled out in their Australian stores.

It comes after Bunnings won a legal battle to monitor its customers with AI.

Coles and Woolworths have conducted tests of facial recognition technology, but it is unclear if either supermarket will be implementing it in stores.

It comes after the Australia Financial Review reported both Coles and Woolworths had trialled the technology as part of an ongoing effort to combat retail crime.

The article said both supermarket giants had "conducted early testing" of the technology.

When the ABC asked Coles about the potential of it being rolled out in stores, a spokesperson made a distinction between the use of the term "test" instead of "trial".

"Coles has not done a trial using this technology," the spokesperson said.

"A small, one-off, controlled proof-of-concept test of the technology was undertaken which did not use customer or team member information or data.

"No decision has been made about the deployment of facial recognition technology."

AI facial recognition technology has been subject to debate over privacy concerns. (Four Corners: Nick Wiggins)

The spokesperson said Coles did not currently use facial recognition technology in stores.

The ABC understands Woolworths tested the technology in its New Zealand office.

A Woolworths spokesperson did not address the ABC's questions on how facial recognition technology was tested or if it would be used in Australia.

"Keeping our team and customers safe is the most important thing we do and we've put significant investment towards this," the spokesperson said.

"While our current safety initiatives are making a difference, we are still seeing a concerning amount of aggression and conflict incidents in our stores on a daily basis, including weapons being presented."

More than 130,000 faces have already been scanned under WA Police's landmark facial recognition trial. The privacy watchdog, experts and Aboriginal advocates are raising concerns about who could be caught in its net.

Facial recognition technology has been subject to debate over privacy concerns and misidentification with particular demographic groups.

Bunnings wins fight to use AI facial recognition

In February, Australian hardware giant Bunnings won a legal battle to monitor its customers with AI.

Bunnings had breached privacy laws by scanning hundreds of thousands of customers' faces without their proper consent, the privacy commissioner found in 2024.

The Administrative Review Tribunal found that facial recognition technology could be used in limited circumstances to address retail crime and protect staff and customers from violence and abuse.

Bunnings was reasonably entitled to use the technology to combat crime and staff abuse, the Administrative Review Tribunal finds.

The decision could provide a legal framework for other retailers to follow Bunnings in embracing the use of AI to reduce the risk of crime in their stores.

Retailers spruik tech for 'modern safety challenges'

The Australian Retail Council (ARC) represents small, medium and large retail businesses across Australia.

Chief executive Chris Rodwell said retail workers were facing "unacceptable levels of violence, threats, intimidation and abuse in stores".

"Used responsibly and in the right context, technology can play an important role in tackling modern safety challenges," Mr Rodwell said.

"Facial recognition can help retailers identify known high-harm repeat offenders when they enter a store, allowing staff to take appropriate action before another violent or threatening incident occurs.

The Privacy Commissioner has published updated guidance on the technology. (Supplied: Woolworths Group)

"The industry is committed to getting this right for workers, customers and the community.

"That's why retailers are taking the time to test its use and ensure its rollout is aligned with the privacy commissioner's guidelines and community expectations."

In July, the privacy commissioner published updated guidance allowing facial recognition to be used in public spaces, including retail stores.

How common is supermarket crime?

A survey from the Shop, Distributive and Allied Employees’ Association (SDA), the union for retail, fast food and warehouse workers, found about a third of workers did not feel safe in their workplace.

The SDA's most recent data, which was published at the end of last year, was based on a survey of nearly 3,000 workers.

It found that, over the period of 12 months:

Both Coles and Woolworths said they would continue to investigate initiatives to ensure worker and customer safety.

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