Grocery Outlet uses facial recognition technology at some Bay Area stores to combat shoplifting

PLEASANT HILL, Calif. - A small sign posted near the entrance of some Grocery Outlet stores is drawing attention for what it says about the retailer's approach to combating shoplifting.

The notice reads: "Face matching software being used to prevent shoplifting."

Grocery Outlet facial recognition

What we know:

Grocery Outlet, which is headquartered in Emeryville, is reportedly using facial recognition technology from SAFR at some locations in the East Bay and San Francisco. 

KTVU reached out to Grocery Outlet for comment but did not receive a response.

"I didn't notice the sign at all, but I didn't have a problem with it mostly because, first of all, I don't do anything wrong, and secondly because I use it all the time on my phone. I use it to open apps," said Carol of Walnut Creek.

According to SAFR, the system compares faces against a retailer's watchlist of repeat offenders or suspects identified by the business. If there's a match, store employees are alerted.

"The camera captures the individual as they come in. We quickly, within seconds, can determine if it's the same person that's on the retailer store security list. If it's not, it's immediately deleted. Then it goes through actually a couple of additional steps of verification. We then do a second algorithm just to ensure we have a human in the loop," said Charisse Jacques, president of SAFR.

SAFR says customer data is not stored on a server and that the technology is designed with safeguards to improve accuracy and reduce bias. The company also says customers can contact SAFR to opt out after data has been collected.

Shoppers divided over facial recognition

Local perspective:

Not everyone is comfortable with the technology.

"I think it intrudes into your privacy. They can do other things to prevent shoplifting," said Tom Escobar of Martinez. "For people who don't cheat, it makes no difference. I just think it's unnecessary."

Others expressed concern about how the technology could evolve.

"I think it's a slippery slope," said Andrew Thiermann of Concord.

SAFR says transparency is an important part of its approach.

"Because of all of the things that we have in place, we do believe that minimizing what happens with the data, ensuring that we have accuracy, we have low bias, that we are informing people through transparency of what we're actually doing. That all of those things together results in responsible use," Jacques said.

Retailers continue to look for ways to address theft, which industry estimates say costs businesses in the U.S. $48 billion annually.

Ahmed Banafa, a professor of engineering at San Jose State University, said it will take time to determine whether facial recognition is effective at reducing retail crime.

"Within a year from now, if we see a reduction on the number of the shoplifting to the stores where they have this kind of camera… if there is no big hiccup, no big problem from now… and they see the reduction, all these billions of dollars being saved, many places would be start using this kind of system with a high confidence," Banafa said.

SAFR says it does not work with law enforcement and requires all of its retail clients to post signs notifying customers that facial recognition technology is in use.

The company declined to say how many Bay Area retailers are using its technology, citing privacy concerns. 

ConsumerPleasant HillTech