The FTC alleged Rite Aid's facial-recognition system falsely flagged shoppers as shoplifters, particularly in non-white neighbourhoods, and that the company did not test its accuracy. Rite Aid was banned from using the technology for five years and disputed the allegations.
Order-based remedies (deletion, bans) are not typical insured loss; defense costs are.
This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.