Hardware giant Bunnings has received approval to implement facial recognition technology in its stores to combat crime. This decision follows a reversal by the administrative review tribunal of a 2024 ruling by the Australian privacy commissioner, which had previously found Bunnings in violation of privacy laws by scanning customers’ faces without adequate notification.
The tribunal’s decision acknowledges that while Bunnings failed to properly inform customers about the facial scanning, the use of the technology is justified for the purpose of addressing significant retail crime and ensuring the safety of staff and customers. The technology was deployed in 62 stores across New South Wales and Victoria from January 2019 to November 2021, following a successful trial in 2018.
Background and Implementation
Bunnings’ use of facial recognition technology involved scanning and checking the faces of hundreds of thousands of customers against a database of individuals banned from its stores. Images were deleted if no match was found, aiming to minimize privacy impact. The initiative was part of a broader effort to address theft and violence in its retail locations.
The company appealed the original privacy commissioner’s decision, leading to the tribunal’s ruling. The tribunal found that the technology’s benefits in providing a safer environment outweighed privacy concerns, despite acknowledging deficiencies in customer notification.
Expert Opinions and Store Experiences
During the tribunal hearings, evidence from store managers highlighted the prevalence of violence and abusive behavior in certain locations. Shawn Adam, a manager at Box Hill, described incidents occurring every two to three days, leaving staff visibly shaken. Bunnings’ national security manager, Alexander MacDonald, emphasized the role of facial recognition in identifying repeat offenders and organized retail criminals.
“A high proportion of these investigations resulted in the identification of repeat offenders, organized retail criminals, and persons who pose a serious risk to the safety of staff or customers,” MacDonald stated.
Despite some instances of false positives, these were manually reviewed and corrected by staff. MacDonald acknowledged studies indicating potential biases in facial recognition technology but asserted that Bunnings’ system showed no racial bias.
Regulatory and Legal Considerations
The tribunal also addressed Bunnings’ failure to adequately notify customers about data collection, as existing signage did not meet legal requirements. Bunnings’ managing director, Mike Schneider, expressed satisfaction with the ruling, emphasizing the company’s commitment to safety and willingness to improve customer communication.
“The safety of our team, customers, and suppliers has always been our highest priority,” Schneider said. “Our intent in trialling this technology was to help protect people from violence, abuse, serious criminal conduct, and organized retail crime.”
The Office of the Australian Information Commissioner (OAIC) acknowledged the decision, noting the Privacy Act’s strong protections for individual privacy and the necessity of case-by-case assessments for exemptions. The OAIC is considering an appeal, reflecting ongoing concerns about privacy implications.
Implications and Future Outlook
The tribunal’s ruling sets a precedent for the use of facial recognition in retail environments, balancing crime prevention with privacy rights. As technology becomes increasingly integrated into security measures, businesses must navigate complex legal and ethical landscapes.
Looking forward, Bunnings and other retailers may face increased scrutiny over privacy practices, particularly in light of growing public awareness and regulatory oversight. The case underscores the importance of transparent communication and robust data protection measures to maintain consumer trust.
The decision also highlights broader societal debates about the role of technology in public safety and individual rights, as stakeholders continue to weigh the benefits and risks of emerging innovations.
