VIP-identification technology was developed by a U.K. based company.  This firm has previously developed technology that helps security services identify terrorists and criminals.  When customers walk through the door of a retailer, the ID technology analyzes footage of their faces and creates a “face template” by converting measurements into a numerical code that is checked against a database.  The database is comprised of celebrities and valuable customers.  If the customer is a match to a face in the database, the technology sends a message to the staff via iPad or smartphone alerting the salesperson of the customer’s importance.  The message also includes information on the customer’s dress or suit size, favorite purchases, and shopping history.

The software is so advanced it is able to identify customers even if they are wearing sunglasses, hats or scarves.  Recent beta tests have shown the technology continues to work if people change their facial hair, hair color, or have a significant change in weight.  Currently, the technology is being tested in a dozen stores and hotels in the U.S., the U.K. and the Far East.

This new facial identification technology does raise some serious privacy concerns.  Similar technologies, like the facial recognition from Google Glass, have come under severe scrutiny for crossing dangerous privacy boundaries.  Similarly, Nordstrom encountered backlash when it disclosed that customers were tracked through the store using their Wi-Fi signals.   However, some celebrities say they are fine with the privacy invasion if it means a more efficient, personalized experience.

Some retail consultants argue that the facial recognition technology is too gimmicky and not cost-effective.  One consultant suggests that stores can get more information about a customer by just using mobile phone applications; while this technology is less convenient for the sales associate, it does reduce the privacy concerns of the customer.   Stores from Family Dollar to Warby Parker are already using data gathered from customers’ smartphones to analyze store layouts and offer customized coupons.

Discussion Questions:

 1. What is facial recognition technology?

2. Do you think this violates customers’ privacy?