{"id":268700,"date":"2026-02-05T08:57:09","date_gmt":"2026-02-05T08:57:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/268700\/"},"modified":"2026-02-05T08:57:09","modified_gmt":"2026-02-05T08:57:09","slug":"bunnings-wins-fight-to-use-ai-facial-recognition-tech-to-combat-store-crime-opening-door-for-other-retailers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/268700\/","title":{"rendered":"Bunnings wins fight to use AI facial recognition tech to combat store crime, opening door for other retailers"},"content":{"rendered":"<p class=\"paragraph_paragraph__iYReA\">Australian hardware giant Bunnings has won its fight to monitor its customers with artificial intelligence facial recognition technology to combat retail crime and reduce staff abuse.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Australia&#8217;s Privacy Commissioner Carly Kind determined in 2024 that Bunnings breached privacy laws by scanning hundreds of thousands of customers&#8217; faces without their proper consent.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">A review of that decision by the Administrative Review Tribunal of Australia has now found the opposite.<\/p>\n<p><img decoding=\"async\" alt=\"The exterior of a large Bunnings Warehouse store. A couple of cars are parked outside and a person is pushing a trolley.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/bfa7df52a82f3bb4c22d1c423cf29478.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Bunnings has waged a two-year fight against a ruling by the privacy commissioner that it had broken the law in its use of facial recognition technology. (Getty Images: Daniel Pockett)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The retailer did not break the law by scanning customers&#8217; identities, but should improve its privacy policy and notify customers of the use of AI-based facial recognition technology, <a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.austlii.edu.au\/cgi-bin\/viewdoc\/au\/cases\/cth\/ARTA\/2026\/130.html\" data-component=\"Link\" rel=\"nofollow noopener\" target=\"_blank\">the ruling said<\/a>.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;We welcome the decision from the Administrative Review Tribunal regarding Bunnings&#8217; past trial of facial recognition technology,&#8221; Bunnings managing director Mike Schneider said in a statement.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Our intent in trialling this technology was to help protect people from violence, abuse, serious criminal conduct and organised retail crime.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;The tribunal recognised the need for practical, common-sense steps to keep people safe. It also identified areas where we didn&#8217;t get everything right, including around signage, customer information, processes and our privacy policy, and we accept that feedback.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The decision could provide the legal framework for other retailers to follow Bunnings in embracing the use of AI to reduce the risk of crime in their stores.<\/p>\n<p>How Bunnings used AI to record customers&#8217; identities<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Bunnings facial recognition technology was first used in one of its stores during a two-month trial in November, 2018.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Between January, 2019 and November, 2021, the use of the AI tech was expanded to 62 other stores across New South Wales and Victoria.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The technology was designed by the Japanese company Hitachi and supplied to Bunnings via a third party, the tribunal ruling said.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2024-11-19\/oaic-investigation-into-bunnings-facial-recognition\/104613700\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Bunnings in breach of privacy laws, Commissioner finds<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The Privacy Commissioner found Bunnings Warehouse interfered with the privacy of its customers by using facial recognition without consent.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The retailer was solely responsible for operating an &#8220;enrolment database&#8221; that contained biometric markers of customers&#8217; faces scanned in photographs taken by store CCTV cameras.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The image database was stored on a hard drive located on a central server at a Bunnings building in Sydney, and copies of the images were stored in each store&#8217;s local server memory, according to the tribunal ruling.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The facial scans were cross-checked against a list of &#8220;enrolled individuals&#8221; who the retailer claimed had committed or were suspected of committing theft, refund fraud or who had threatened store staff or other members of the public.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The number of people included on that list at times extended into the hundreds, the tribunal ruling said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In 2024, Ms Kind said a two-year investigation into the use of the AI technology <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2024-11-19\/oaic-investigation-into-bunnings-facial-recognition\/104613700\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/104613700\" rel=\"nofollow noopener\" target=\"_blank\">determined customers would likely not have been aware<\/a> their identity was being monitored.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">At the time, Bunnings told investigators that when a match was not made between a person&#8217;s face and an &#8220;enrolled individual&#8221;, the customer&#8217;s data was collected and automatically deleted within an average of 4.17 milliseconds.<\/p>\n<p>Loading&#8230;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Mr Schneider also said in 2024 that about 70 per cent of incidents in Bunnings stores were caused by repeat offenders, which justified the use of the AI technology.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The practice came to the attention of the Office of the Australian Information Commissioner (OAIC) when consumer advocacy group Choice revealed in 2022 that Bunnings, Kmart and The Good Guys were using facial recognition technology.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">All three stores halted the practice in the wake of Choice&#8217;s report.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;We have found that during the relevant period, Bunnings was entitled to use [facial recognition technology] for the limited purpose of combating very significant retail crime and protecting their staff and customers from violence, abuse and intimidation within its stores,&#8221; the tribunal decision said on Wednesday.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Important factors in our decision included, first, the extent of retail crime being faced by Bunnings staff and customers and, second, the technological features of the [facial recognition technology] system, which minimised the intrusion on privacy by permanently deleting collected sensitive information and by limiting its susceptibility to cyber-attack.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;The advanced technology in the [facial recognition technology] system limited the impact on privacy so as not to be disproportionate when considered against the benefits of providing a safer environment for staff and customers in Bunnings stores.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The OAIC said the tribunal&#8217;s ruling showed Bunnings had not done enough to properly manage customers&#8217; personal information, including individuals not listed as an &#8220;enrolled individual&#8221;, or alert them that they were being monitored.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;[The] decision confirms the Privacy Act contains strong protections for individual privacy that are applicable in the context of emerging technologies,&#8221; an OAIC statement said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;We particularly welcome that the decision reaffirmed a range of key interpretive positions taken by the OAIC, including that even momentary collection of personal information by advanced digital tools constitutes a collection under the Privacy Act.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;The Australian community continues to care deeply about their privacy, and is increasingly worried about the challenges in protecting their personal information.&#8221;<\/p>\n<p>&#8216;Common sense has prevailed&#8217;: Retail expert weighs in<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Gary Mortimer, a professor of retail and consumer behaviour at the Queensland University of Technology, said he supported the administrative tribunal&#8217;s ruling.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s incumbent on retailers to not just keep their workers safe, but also other customers safe, and also protect their inventory from loss and theft,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;They should be looking at alternative ways to do that and using high-tech, innovative technology, computer vision [and] AI systems is the way of the future.&#8221;<\/p>\n<p>Loading&#8230;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Professor Mortimer also said he expected other major Australian retailers to follow Bunnings&#8217; lead in implementing facial recognition technology in their stores to increase safety and quickly identify potential criminal risks.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;This type of technology will become commonplace,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It also has broader impacts outside of just retail. I think about government workers in service positions that encounter aggressive behaviour all the time. I think about a tram, train and bus drivers that encounter abuse.&#8221;<\/p>\n<p><img decoding=\"async\" alt=\"A shot from inside a trolley as it moves down an aisle of a Bunnings store. The shelves on either side are full of paint tins.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/5e74eb4cd29c5390b661d9418378fa62.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The tribunal&#8217;s ruling could lead to other major retailers also using facial recognition technology says Gary Mortimer. (Four Corners: Nick Wiggins)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Artificial intelligence also provides retailers with a level of convenience in reducing potential crime, Mr Mortimer said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;A human doesn&#8217;t have to sit there looking, waiting for something to take place,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;The AI system will identify if someone is loitering near a toilet area, the AI system will identify if somebody placed something inside their pocket or concealed a product.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s reasonable that clearer signage needs to be put in place \u2014 and that&#8217;s maybe something that may have been overlooked in [Bunnings&#8217;] initial implementation of this technology.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;After a certain period of time, images will be deleted; images won&#8217;t be reviewed by a human. I just think there needs to be better clarity and communication around the technology.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Australian hardware giant Bunnings has won its fight to monitor its customers with artificial intelligence facial recognition technology&hellip;\n","protected":false},"author":2,"featured_media":268701,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,52297,6147,111,139,69,6903,644,152621,6492,6302,145],"class_list":{"0":"post-268700","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-bunnings","12":"tag-crime","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-privacy","17":"tag-retail","18":"tag-retail-safety","19":"tag-retailers","20":"tag-safety","21":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/268700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=268700"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/268700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/268701"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=268700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=268700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=268700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}