Australia's largest pharmacy chain, Chemist Warehouse, has ignited privacy concerns after rolling out AI-powered cameras worn by staff in some Melbourne stores. The trial, which began on Monday, has prompted questions about whether customers' sensitive medical information could be captured.
Staff raise alarms over prescription data exposure
In a post on Reddit, a staff member revealed that employees had been asked to assist with a 'special AI zone' aimed at improving stock management. 'This requires at least four separate retail floor members to wear an AI camera around our necks for a minimum of 12 hours a working day,' they wrote. The employee expressed concern that the device could potentially capture details on patient prescriptions visible while working. 'As someone who occasionally works on the register, I frequently deal with patient prescriptions and repeats in my view, with full names, addresses and medications of the customers/patients in my view,' they wrote. 'Am I violating people's rights by wearing this camera and in turn at risk of being in trouble?'
Chemist Warehouse defends technology as stock management tool
Chemist Warehouse announced its partnership with artificial intelligence company Augmodo in 2024, stating the technology would provide staff with access to 'real-time shelf data'. Managing partner and general manager of IT retail Mark Finocchiaro said at the time that the devices would help staff identify products that were out of stock, incorrectly placed, or required attention. 'They simply wear the lanyards around their neck and no longer need to spend hours auditing — everything is automatically scanned as they walk the floor, making their role even more valuable,' he said. 'Not only are they helping to provide real-time inventory data but now have more time to help customers.'
Pilot program shows early success with 30% reduction in inventory gaps
The companies launched a pilot program in 2024 and reported 'incredible results' within the first month, including a 30 per cent reduction in inventory gaps at participating stores. The partnership aims to expand to 550 locations by 2027.
Public backlash grows over privacy and potential misuse
Online reaction to the trial has been largely critical. 'Will definitely not be shopping there and will tell family too,' one person commented on the online post. Another questioned whether the technology could be used for purposes beyond stock management, asking if the term was 'corporate speak ... that translates to facial recognition for anti-theft. Or is it actually to train AI to replace the jobs of the same staff wearing the cameras?' A third commenter said, 'This is not the same as a shelf camera in a supermarket. It's a pharmacy. Staff can easily have prescriptions, repeats, patient names, addresses, Medicare details, medication names, POS screens and private health conversations in view. If the camera is worn around the neck for hours, it is very hard to believe it will only ever capture stock management data.'
7NEWS.com.au has contacted Chemist Warehouse and Augmodo for comment.
