A proposed settlement action filed on December 19, 2023, by the Federal Trade Commission (FTC) against Rite Aid Corp. highlights some of the key issues presented when companies use artificial intelligence (AI) for facial recognition surveillance, and provides a blueprint for how companies can minimize their risk of deploying such systems. The settlement was filed as a complaint and proposed stipulated order by the FTC in the U.S. District Court for the Eastern District of Pennsylvania, and must be approved by that court as well as the court overseeing Rite Aid’s bankruptcy.