Kmart has broken privacy laws by using facial recognition cameras on customers, the Privacy Commissioner has found.

The retail giant used the cameras for two years until mid-2022, capturing the facial data of hundreds of thousands of people.

The cameras were placed at entrances and return counters in 28 stores across the country to detect refund fraud.

In a decision released Thursday, Privacy Commissioner Carly Kind said Kmart tried to argue the cameras were legal because of an exemption in the Privacy Act, which applies when organisations reasonably believe that they need to collect personal information to tackle unlawful activity or serious misconduct.

Ms Kind said people’s right to privacy outweighed Kmart’s arguments.

Kmart’s facial recognition technology cameras “indiscriminately

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