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Grocers cry foul as NYC weighs ban on face-ID tech that stops thieves

INBV News by INBV News
June 18, 2023
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Grocers cry foul as NYC weighs ban on face-ID tech that stops thieves
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Big Apple grocers who’ve been using facial-recognition technology to battle a citywide shoplifting epidemic are fuming over a City Council proposal that may ban the software — just as shopkeepers say it’s starting to prove effective.

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The proposed bill — which follows town’s feud with Madison Square Garden owner James Dolan, who has used the tech to bar his legal enemies from events at his sports and entertainment venues – would require private businesses and residential buildings to acquire customers’ written consent before their biometric information is captured.

Such a rule would make it practically unattainable for supermarkets to make use of the technology to combat theft — at the same time as Dolan has grabbed headlines for using it at Radio City Music Hall, where he barred one lawyer from attending the Rockettes’ Christmas Spectacular together with her daughter’s Girl Scout Troop.

While Dolan’s controversial clampdown helped galvanize legislators this spring, the bill has gained momentum as some argue that the technology should only be allowed to be used by law enforcement, claiming that it increases the chance of racial profiling. 

James Dolan at a game at MSG.Madison Square Garden’s James Dolan galvanized NYC lawmakers to propose legislators to propose banning private use of the technology.

“Studies have consistently shown that this technology has high error rates for darker skinned people,” City Council member and co-sponsor Shahana Hanif (D-Brooklyn) said in a press release to The Post. “We’re headed down a dystopian path if we’re conceding that a facial recognition scan is a prerequisite to purchasing eggs.”

Hanif, who was raised Muslim, said she has “been aware of the surveillance state for years,” having grown up in Latest York City after the Sept. 11 terrorist attacks.

“The Madison Square Garden incidents pushed this laws into the highlight and helped us to get a hearing on the books,” added Hanif’s spokesperson, Michael Whitesides. “I wouldn’t put this all on MSG and James Dolan.”

NYC Council member Shahana Hanif.City Council member, Shahana Hanif says using biometric technology increases the chance of racial profiling.Getty Images

The bill — which calls for a $5,000 superb per violation, in addition to any legal fees involved — is gaining support with some 15 legislators signed on, up from seven at a May 3 committee hearing. It’s not yet clear whether it’s being fast-tracked or not.

“I hope this doesn’t advance because I feel it penalizes small businesses,” said Councilman Robert Holden (D-Queens), who attended the hearing as a member of the technology committee.

The safety industry maintains that facial recognition technology has improved a lot that concerns about racial profiling are outdated.

Facial recognitionBig Apple shopkeepers say facial recognition tech is starting to prove effective in stopping shoplifters.Getty Images/iStockphoto

“The narrative that the technology is performing less well for certain demographic groups is predicated on old information,” said Jake Parker, director of presidency relations for the Security Industry Association. “Within the early days of facial recognition about 10 years ago, there have been lower-performing technologies but today’s software may be very accurate, high-performing and uses artificial intelligence.”

Earlier this 12 months, a bunch of independent grocers formed a political coalition to demand that legislators and law enforcement clamp down on shoplifters, whose heists have multiplied for the reason that pandemic.

In 2022, NYPD officials said that 327 people accounted for six,660 arrests — or 30% of all shoplifting incidents. Business owners blame Manhattan district Attorney Alvin Bragg for the spike in shoplifting after he said last 12 months that stealing lower than $1,000 value of products is taken into account a misdemeanor and never among the many crimes his office could be prosecuting.

A store is cordoned off with a police car parked outside.Shoplifting has soared in Latest York City over the past couple of years.Michael Dalton

In response, scores of companies, including Fairway and Westside Market, have invested in facial-recognition technology. Between 30% and 40% of all independent groceries are using some version of the software, in line with Jay Peltz, senior vp of presidency relations for the Food Industry Alliance of Latest York.

The stores are constructing databases of thieves who’ve stolen from them at the very least once, identifying them initially on surveillance cameras. Images are then plugged into the facial-recognition software, which becomes more practical over time.

“We still have an issue with first-time shoplifters, but once we see them we tag those people,” said Miguel Garcia, who co-owns a Foodtown, Key Food and Met Supermarket within the Bronx which were using the technology since last 12 months.

A freezer of ice cream padlocked up.Many grocery stores have resorted to locking up popular items.Helayne Seidman

“When the person has the merchandise already, then it’s like, ‘No, I’m not going to present it up,’” said Garcia, who adds that his staff has been threatened verbally and with knives and bats. 

“We’re losing quite a lot of staff because they are actually afraid to work in the shop,” Garcia said. “It’s insane that [the city] need to take this [technology] out of my stores when it’s cutting down on such confrontations.”

Along with text messages alerting the staff to a suspicious person, Garcia’s stores have a lightweight above the doorway of the shop that flashes yellow when the software flags someone. Some potential shoplifters simply turn around and leave the shop before anyone approaches them, Garcia said.

Success stories like Garcia’s convinced Morton Williams’ owner to buy facial recognition software to put in in his 16 stores in town. Over the past 12 months, the chain has spent over $1 million to rent off-duty NYPD officials to face guard on the stores’ exits, co-owner Avi Kaner told City Council members on the May 3 hearing.

A wall of photos in a supermarket.NYC grocers say they need to take a position in security technology to fight theft of their stores.Helayne Seidman

“It’s not sustainable to employ NYPD officers, who receives a commission $50 an hour when theft happens in our stores day by day,” Kaner told The Post. “It’s practically worn out any profit we’ve.”

Last month, a bunch of 5 thieves pillaged the Morton Williams’ store across the road from Columbia University in only two minutes, fanning out into different aisles and stuffing toothpaste, meat and detergent into duffel bags. When an worker tried to stop the shoplifters from running out without paying, one pulled a knife on him.

Critics of facial recognition software say the systems may be 99% accurate for middle-aged white men but get it unsuitable a couple of in thrice for some women of color.

“Grocery stores want us to trust them they should not getting it unsuitable, but I need them to present us the information to back up their claims,” Albert Fox Khan, executive director of the Surveillance Technology Oversight Project told The Post.

Carlos Collado.Carlos Collado, who owns Advantageous Fare grocery stores within the Bronx says that facial recognition technology is saving him at the very least $150 per week per store.Stefano Giovannini

Carlos Collado, a co-owner of two Advantageous Fare grocery stores within the Bronx and Harlem who also manages 4 other stores, has been using the software for the past five months. He estimates it’s saving him $150 every week per store — a number that’s steadily increasing because it builds a database of known shoplifters.

Collado said the system he uses rarely flags the unsuitable person, and that when it happens his staff catches the error before approaching the person.

“The final thing we would like to do is to show away a customer,” Collado said.

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