Saturday, October 19, 2024

Retailers Explore Use of Live Facial Recognition Technology to Combat Shoplifting

Retailers have conveyed to the House of Lords that live facial recognition (LFR) technology is unlikely to significantly aid in the fight against shoplifting, primarily due to safety and ethical concerns. However, they advocate for the use of retrospective facial recognition (RFR) technology in collaboration with law enforcement to identify offenders after incidents occur.

In May 2024, the House of Lords Justice and Home Affairs Committee (JHAC) initiated an inquiry into combatting shoplifting, examining how both police and retailers utilize LFR and RFR technology to address retail crime. During a session on September 3, Paul Garrard, public affairs and board secretariat director for the Co-op Group, explained that while the group does not employ LFR for real-time shoplifting detection, they compile an “evidence pack” that includes CCTV footage and staff body-worn camera recordings to assist police investigations using RFR software.

Garrard noted that while certain police forces may compare this compiled footage against the Police National Database (PND) – which includes millions of custody images, many of which are unlawfully retained by the Home Office – this practice is not yet standard. He stressed that it should be, citing positive results seen in South Wales. When police do utilize the PND for image comparisons, they often discover additional interests related to those individuals.

In October 2023, the UK government initiated Project Pegasus, a partnership involving 14 leading UK retailers, including M&S, Boots, and Co-op. The project focuses on sharing CCTV footage with police so they can analyze it with RFR technology against the PND.

During a prior inquiry session, Chief Constable Amanda Blakeman emphasized the importance of RFR in combatting shoplifting, particularly for identifying unknown individuals who have been through the custody system. She pointed out that if a suspect is already known, there is no need for RFR, as their identity is confirmed. Blakeman indicated that the technology allows for preventive measures and intelligence gathering, which is crucial for identifying prolific offenders who operate across multiple jurisdictions.

Despite recognizing the advantages of RFR, Garrard mentioned that the Co-op has “no plans” to implement LFR in its stores, finding it unclear what useful interventions it would prompt. He expressed concerns regarding the potential risks to store staff who might be compelled to intervene if a shoplifter is flagged by an LFR system. Additionally, he commented that local facial recognition watchlists would likely be ineffective compared to the PND, as many individuals listed may not be related to shoplifting.

Concerns about the use of LFR in retail settings were echoed by Emmeline Taylor, a professor at City University’s School of Policy and Global Affairs, who suggested developing a code of practice for facial recognition applications across sectors, though she was uncertain whether such a code should be legally mandated. She acknowledged the potential for AI-driven biometric surveillance to invade public privacy but also recognized its effectiveness in identifying repeat offenders.

According to the British Retail Consortium, there were approximately 440,000 recorded incidents of shop theft in the past year, but estimates suggest the true number may be nearly 17 million, indicating that only 3% of cases are reported. Taylor attributed much of this theft to social issues such as poverty, homelessness, drug addiction, and mental health struggles, exacerbated by a decade of austerity reducing access to essential services.

Garrard indicated that while the public generally supports taking action against shoplifters, there needs to be a broader dialogue about how intrusive law enforcement should be. He pointed out that stores need to maintain an inviting atmosphere and should not feel like fortified locations, as this detracts from the essence of high street shopping.

As police are increasingly tasked with addressing crime amidst budget cuts, Taylor noted a growing reliance on technology. She highlighted the potential for “business crime reduction partnerships” (BCRPs) to play a significant role in community-based crime prevention efforts. Currently, over 250 BCRPs operate in the UK as subscription-based, business-led groups collaborating with police and local authorities to combat business-related crime.

James Lowson, CEO of the Association of Convenience Stores, mentioned that fewer than 10% of small retailers are using LFR, though they are beginning to collaborate on local watchlists of known offenders. Adam Ratcliffe, operations director at the Safer Business Network CIC, added that such collaborations will enhance cooperation with police in targeting known thieves. However, LFR adoption remains low in the sector, largely due to ongoing concerns regarding the technology’s legality and accuracy. “There’s significant apprehension surrounding live recognition, and many retailers are hesitant to consider it for the time being,” he explained.