FTC, Rite Aid Are Granted 45-Day Stay to Seek Bankruptcy Court OK of Their Settlement
U.S. District Judge Kelley Hodge for Eastern Pennsylvania in Philadelphia granted the FTC and Rite Aid's Sept. 19 joint motion to stay their case for 45 days to give the U.S. Bankruptcy Court time to approve their facial recognition settlement,…
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said Hodge’s signed order Thursday (docket 2:23-cv-05023). The action is stayed until Feb. 2 or until the bankruptcy court approves the settlement, whichever is earlier, said the order. The parties by Feb. 2 will file a motion seeking entry of the settlement, or will otherwise notify the court “of the status of the effort” to seek bankruptcy court approval, it said. The settlement with the FTC bars Rite Aid from using facial recognition technology for surveillance purposes in its stores for five years (see 2312190090). The FTC had alleged that Rite Aid failed to implement reasonable procedures and prevent harm to consumers in its use of facial recognition technology to combat theft in hundreds of its stores.