Major retailer The Good Guys has announced it will temporarily stop using facial recognition technology in its stores following backlash about the data collection, which has been called "invasive" and "unnecessary".
The home appliance chain has said it will pause using the technology, "pending any clarification from the Office of the Australian Information Commissioner" about its use.
The move has come two weeks after Australia's leading consumer advocacy group CHOICE raised serious concerns about Kmart, Bunnings and The Good Guys recording customers' faceprints, finding that most Australians were unaware of it.
CHOICE announced on June 15 that it was referring the retailers to the Office of the Australian Information Commissioner (OAIC) to investigate potential breaches of the Privacy Act.
CHOICE consumer data advocate Kate Bower slammed the retailers using the technology as "completely inappropriate and unnecessary".
"Using facial recognition technology in this way is similar to Kmart, Bunnings or The Good Guys collecting your fingerprints or DNA every time you shop," Bower said.
"Businesses using invasive technologies to capture their customers' sensitive biometric information is unethical and is a sure way to erode consumer trust."
The Good Guys has said it was using the technology in two of its Melbourne stores as an upgraded security system trial.
A statement from the company has said it takes "the confidentiality of personal information extremely seriously and remains confident that the trial complied with all applicable laws".
"The technology was solely used to review incidents of theft, and for the purposes of customer and team member safety and wellbeing," the statement reads.
CHOICE has since called the move by The Good Guys "an important first step" and has called on Kmart and Bunnings to follow suit.
"This is an important step in the right direction for The Good Guys, and a decision we know reflects community expectations," CHOICE senior campaigns and policy advisor Amy Pereira has said.
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"Meanwhile, Bunnings and Kmart are lagging behind when it comes to any kind of commitment to stop the unethical and unnecessary use of facial recognition technology in their stores.
"We urge Kmart and Bunnings to reflect on the announcement made yesterday by The Good Guys, and ask them to end their use of facial recognition technology in store."
"Following our investigation, we have had an overwhelming response from the Australian community saying clearly they do not want this kind of technology used in retail stores.
"People who shop at The Good Guys will be pleased to know they're now able to do their shopping without this intrusive technology monitoring them."
