SYDNEY, Nov 19 (Reuters) - Wesfarmers ( WFAFF )-owned

Bunnings, the country's biggest home improvement chain, breached

the privacy of thousands of customers by using facial

recognition technology without gaining consent, an Australian

watchdog has found.

Bunnings compared the faces of customers against individuals

it had stored in a database who had been identified as having a

history of past crime or violent behaviour, according to the

Office of the Australian Information Commissioner (OAIC). The

system automatically deleted images if no match was found.

The technology may have been an efficient and cost-effective

option for Bunnings to tackle unlawful activities but that does

not mean its use can be justified, Privacy Commissioner Carly

Kind said in a statement.

Bunnings failed to take reasonable steps to notify

individuals that their personal information was being collected

and did not include required information in its privacy policy,

she added. The company has been ordered to destroy all personal

information and stop practices that could impact the privacy of

customers.

Bunnings said it was deeply disappointed with the decision

and that it would approach the Administrative Review Tribunal to

seek a review.

"We believe that customer privacy was not at risk. The

electronic data was never used for marketing purposes or to

track customer behaviour," Bunnings Managing Director Mike

Schneider said in a statement.

The facial recognition system captured details of customers

who visited 63 stores in the states of Victoria and New South

Wales between November 2018 and November 2021, the watchdog

said.

Facial images and other biometric information are considered

sensitive under Australia's privacy law, and the OAIC decision

could influence how businesses might deploy facial recognition

technology in the future.

In 2022, Consumer group CHOICE complained to the government

agency that three retail chains, including Bunnings, were using

"unreasonably intrusive" facial recognition technology.