Facial Recognition in New Zealand Retail: Innovation and Trust
Walk into a New Zealand supermarket today and it’s no longer unusual to see CCTV cameras silently watching over the aisles. Increasingly though, those cameras aren’t just recording, they may also be recognising individuals. Facial recognition technology (FRT) is shifting from futuristic possibility to everyday reality in retail. It promises fewer thefts, a safer environment for staff, and more secure stores. Yet it also raises a central question of our time: how much oversight of daily life is too much?
When Foodstuffs North Island trialled FRT across 25 stores, scanning over 225 million images, the response was mixed. The Privacy Commissioner’s review concluded the trial complied with the Privacy Act 2020, thanks to strict guardrails: clear purpose, transparency, accuracy, and data protection. At the same time, other major retailers signalled their interest in adoption. It’s clear this technology isn’t going away. The real question is how to use it responsibly, in ways that maintain trust.
The Privacy Act, and soon the Biometric Processing Privacy Code, set the baseline. The Code requires biometric information to be collected only for necessary and proportionate reasons. Retailers must explain what they’re doing, secure the data, and ensure it is used fairly.
A compliant system is possible. But compliance alone doesn’t answer the ethical question: should we? A recent survey showed 41% of New Zealanders feel uneasy about FRT in stores, concerned about surveillance creep, bias, and the erosion of everyday anonymity. When a customer walks into a store, they bring more than a shopping list. They bring expectations of dignity, trust, and fairness. Retailers who view facial recognition purely as a loss-prevention tool will miss the bigger picture. Those who see it as part of a broader trust relationship will find customers more willing to accept it, provided they feel respected and informed.
Forward-thinking retailers will go beyond compliance. They’ll conduct robust privacy impact assessments before rolling out FRT, make signage clear and meaningful rather than hidden in fine print, and ensure algorithmic alerts are reviewed by people before any decisions are made. They’ll adopt strict limits on data retention and design with deletion in mind. Most importantly, they’ll have open conversations with customers about why they’re using the technology and how it benefits everyone.
Facial recognition is likely to move from trial to mainstream in New Zealand retail. The winners won’t be those who deploy it fastest, but those who balance innovation with ethics, delivering value while upholding the rights of their customers.