A California grocery chain is implementing facial recognition technology in some of its stores to address rising shoplifting incidents, a move that has ignited anger among customers concerned about privacy violations.

The Emeryville-based chain, Grocery Outlet, is deploying software known as SAFR. Shoppers will be alerted that the technology is in use to identify individuals suspected of theft. One store in Pleasant Hill, Contra Costa County, will be among the first to utilize the system.

California has seen a significant increase in shoplifting, with incidents reportedly rising 50% since the start of the pandemic. This trend has led some store managers to support the adoption of such technologies.

However, shopper reactions highlight significant concerns. "I do understand, but invading my privacy with my picture. I don’t agree on that," said Barbara Jackson. "You gotta find a better way." Another shopper, Steve Burdette, added, "It could lead to a lot of problems, I think for companies and businesses and people."

Privacy advocates and legal experts have also raised alarms. Mario Trujillo, an attorney specializing in digital privacy with the Electronic Frontier Foundation, described the technology as a "dragnet that scans everyone." He argued that "even if you’ve done nothing wrong, your face is being scanned," which he believes violates the privacy rights of all customers.

Dr. Ahmed Banafa, an engineering professor at San Jose State, cautioned that the technology could expose the grocery chain to lawsuits related to profiling if adequate safeguards are not in place. He emphasized the importance of human oversight, stating, "The human has to be in the loop. It’s not just the system that says it’s a match. The human will make the final decision." He also noted that AI systems can sometimes exhibit bias against certain racial groups.

SAFR's president, Charisse Jacques, asserted that the company's technology is not connected to law enforcement and does not create public databases of individuals entering stores. She stated that information is stored only for shoplifting suspects and is retained for a limited period. Jacques also affirmed that SAFR has never shared data with the government or Immigration and Customs Enforcement (ICE) and has not been asked to do so.

This development follows broader scrutiny of grocery stores regarding their use of digital technologies. In 2024, Walmart announced the integration of digital shelf labels (DSLs) across all its U.S. stores, sparking fears among some consumers about the potential for dynamic pricing, also known as surge pricing, where prices could fluctuate in real-time based on market conditions such as demand and competitor pricing.