Consumer NZ is concerned about the lack of disclosure around AI-powered digital billboards in shopping malls.
The technology is being used at Westfield centres in Auckland and Christchurch.
Consumer chief executive Jon Duffy said the digital billboards, named SmartScreens, analyse people that walk by and serve up customised advertising based on that person's age, gender, and mood.
"We are seriously concerned New Zealanders are unaware they are being filmed and their biometric data analysed, with advertising targeted at them on that basis," Duffy said.
"People should be told when they're being targeted with personalised advertising - especially in public places."
One Consumer staffer visited Westfield Riccarton and saw a disclaimer claiming video surveillance was for safety, the organisation said.
"Yet safety isn't the reason the biometric billboards are filming you," Duffy said.
"To find out what information is being gathered by the in-mall surveillance, you're referred to either the online privacy policy or a customer service desk inside the mall.
"The presumption that a shopper is going to go online and read, let alone understand, a privacy policy before heading to a public space like a mall is ridiculous.
"It's not okay to hide what you're doing in some far-flung corner of the internet and call that disclosure."
He said that companies need to do a better job informing the public, so people can opt-out if they want to.
"Although expecting consumers to simply avoid public spaces like their local mall isn't exactly fair," Duffy added.
'A superior customer experience'
Scentre Group, which owns and operates Westfield malls in Australia and New Zealand, has defended its use of the screens.
A spokesperson said about 125 SmartScreen units were used for advertising at its malls around Aotearoa.
"SmartScreens are also a vital part of our centre emergency management systems, a channel that can be used to communicate safety and security messages to customers when needed," the spokesperson said.
"The technology detects customers anonymously using audience measurement and can determine the number of people passing a screen, as well as approximate other attributes... This data is aggregated and not associated with any individual."
And the technology meets New Zealand's legal requirements, the group said.
The screens don't identify people, or record their image, they added.
"Our continued investment in SmartScreen technology improves our ability to deliver a superior customer experience to the millions of visitors we welcome to our destinations each year," the spokesperson said.
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