Auror Subject Recognition (ASR) Trial Notice

The safety of our customers, patients, and team members is our highest priority.

Chemist Warehouse New Zealand is conducting a limited trial of Auror Subject Recognition (ASR) in selected stores to help reduce serious harmful behaviour and repeat offending. Between 2023 and 2025, more than 14,000 incidents of harmful behaviour were recorded across our stores, with incidents increasing significantly over this period. Approximately one in five incidents involved repeat offenders. This trial is designed to assess whether ASR can help address these risks in a safe, lawful, and proportionate way.

This reflects a broader issue across New Zealand's retail sector. Retail NZ's Retail Crime Report 2024 reported that 99% of surveyed retailers experienced some form of retail crime or anti-social behaviour in the year to 30 June 2024, with incidents including shoplifting, threatening behaviour, criminal damage, robbery, and physical violence or assault. For more information, see Retail NZ's retail crime insights: Retail NZ - Retail Crime Insights

• Chemist Warehouse Lower Queen Street - Auckland Central
• Chemist Warehouse Victoria Street - Auckland CBD
• Chemist Warehouse Glen Innes
• Chemist Warehouse St Lukes
• Chemist Warehouse Broadway - Newmarket

The trial starts on 21 August 2026 and will run for a limited period (an initial period of 3 months, which may be extended for an additional 3 months if required), and is subject to ongoing review.

We use ASR only for safety and crime prevention purposes.

Specifically to:

• Identify individuals who have previously engaged in serious harmful behaviour or significant unlawful activity
• Help staff respond more safely and consistently to known risks.
• Reduce repeat incidents involving violence, threats, or serious offending.
• Support lawful and proportionate safety interventions.

ASR is not used for marketing, analytics, profiling, emotion or mood detection, demographic categorisation, general customer tracking, staff performance monitoring, or automated decision-making.

When you enter a participating store:

• Dedicated cameras capture images of all individuals entering the store for security purposes.
• The system converts facial images into a biometric template (a mathematical representation of facial features).
• This template is compared against a limited watchlist of authorised Persons of Interest (POIs).

If no match is identified:

• The biometric template is processed in real time and exists only briefly in system memory during the comparison process (it is not stored).
• This processing occurs within milliseconds to a few seconds.
• The biometric template is automatically deleted within seconds.
• No facial recognition data is retained.

If a possible match is identified:

• An alert is generated for trained staff.
• The system does not confirm identity.
• At least two authorised staff must review the alert before any action is taken.

No decisions are made solely by automated systems.

Only a small number of individuals who meet strict criteria are included as Persons of Interest.

This includes individuals involved in serious harmful behaviour or significant unlawful activity, such as:

• Violence or attempted violence
• Credible threats of harm.
• Weapon-related incidents.
• Theft or attempted theft of more than NZD $1,000 (cumulative value).
• Attempts to obtain restricted medicines unlawfully.

All watchlist inclusions:

• Are based on documented incident records.
• Require manual review and approval by authorised personnel.
• Must be necessary and proportionate for safety purposes.

Inclusion is not automatic, and most incidents do not result in enrolment.

No one under 18 is ever added to the watchlist.

The watchlist is shared across participating trial stores.

This allows stores to identify individuals who may move between locations and pose a safety risk.

This sharing is:

• Limited to participating stores only
• Subject to strict controls and regular review
• Restricted to individuals meeting the defined criteria

A Person of Interest remains on the watchlist for up to 24 months, depending on the incident, and is automatically removed when that period expires.

We are committed to protecting your privacy.

This trial has been designed to ensure the use of facial recognition is lawful, necessary, and proportionate.

The technology is provided by Auror, a New Zealand company, which processes this information on our behalf under strict contractual controls.

At the end of the trial we will assess the results against pre-set criteria and share what we found.

As part of the trial design and governance process, CWH NZ has also considered potential impacts on Māori. This includes monitoring for any disproportionate impacts, providing staff training on relevant cultural considerations, and implementing measures to help ensure individuals are treated fairly, respectfully, and consistently.

The system operates in accordance with:

• Privacy Act 2020, including the Information Privacy Principles
• Biometric Processing Privacy Code 2025
• Guidance from the Office of the Privacy Commissioner

Key safeguards include:

• Access restricted to authorised and trained personnel only
• Mandatory human review of all alerts (no solely automated decisions)
• Full privacy impact assessment undertaken to assess privacy risks
• Regular oversight and review of system use
• Data minimisation and strict retention limits
• Specific policies for vulnerable individuals
• Specific detailed training for all staff involved in the ASR Trial
• Independent testing of the underlying facial recognition technology (Paravision) by the US National Institute of Standards and Technology, which has ranked Paravision among the top performing systems in NIST's published accuracy and bias evaluations.
• Information hosted on Microsoft Azure in Australia, encrypted in transit and at rest. The Azure data centres hold ISO 27001 certification, and Auror maintains its own SOC 2 Type II attestation.
• All authorised personnel are required to handle information confidentially and in accordance with our privacy obligations.
• Ongoing monitoring for fairness, bias, and any disproportionate impacts on Māori

Watchlist data is not shared with other retailers. Information may be shared with the Police only where legally permitted, for example, in response to a warrant or court order.

By entering a participating store:

• Your facial image will be scanned and compared against a limited watchlist
• If you are not on the watchlist, your data is not retained
• If a possible match occurs, it will be reviewed by trained staff before any action is taken
• A match only creates an alert for staff to review. It never automatically refuses service, and never prevents you from getting the medicines or health care you need

If you prefer not to enter a store using facial recognition technology, you can choose to shop online @ chemistwarehouse.co.nz or visit a non-participating store.

You have the right to:

• Request access to your personal information
• Request correction of your information
• Raise concerns or make a complaint
• Ask to be removed from the watchlist

For more information, or to make any of these requests, email [email protected] or see our Privacy Policy. A printed copy of this notice is available on request in any participating store. Chemist Warehouse New Zealand is a group of companies that operate retail pharmacy stores. It includes Pharmacy Investments Group Limited and all companies that are part of the New Zealand Chemist Warehouse Group, including all registered New Zealand companies from Pharmacy Investments 1 Limited to Pharmacy Investments 100 Limited (each a Chemist Warehouse store). Our address is Pharmacy Investment Group, 318 Richmond Road, Grey Lynn, Auckland 1021. Contact Us form.

For more information about this trial, please download the ASR Trial Information document.