May 21, 2026
Home improvement giants Home Depot and Lowe’s are expanding the use of their AI-powered, automated license plate readers to help combat shoplifting and organized retail theft. Known as ALPR, the technology captures images of vehicles and their license plates as they arrive at their stores.
Produced by Flock Safety, the ALPR is the same system used by ICE to target immigrants. Home Depot and Lowe’s have both denied claims that they are sharing information with Immigration and Customs Enforcement (ICE) or Customs and Border Protection.
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“We’ve invested quite a bit of technology at different parts of the business in front of the customer and behind the scenes to help us to manage this, and we take a unique and differentiated way,” Lowe’s CEO Marvin Ellison said at a Goldman Sachs conference.
How technology works and why retailers want it
In June 2023, Home Depot CEO Ted Decker told CNBC’s Squawk Box that retail theft was a big problem for retailers. Companies reported a 93% increase in the number of incidents per year when compared to 2019, according to a National Retail Federation study.
To cut down on their shrink (the amount of merchandise lost from the manufacturer to the customer), Home Depot and Lowe’s use cameras mounted on poles that use solar panels. They scan vehicles and people as they come and go.
One case in Southern California had 14 people arrested for 600 suspected thefts from 71 stores, amassing over $10 million worth of goods. David Ahl allegedly ran a storefront called ARYA Wholesale in Tarzana in which stolen goods from Home Depot and Lowe’s were resold. He faced 48 felony charges including conspiracy, organized retail theft, grand theft, receiving stolen property and money laundering last August. He pled not guilty.
“They basically had been able to pull off over 600 different thefts from Home Depots in the surrounding counties,” Los Angeles County District Attorney Nathan Hochman said. “They must have thought life was grand. They’ve been making millions of dollars, didn’t look like anyone was going to stop them.”
Theft from large stores has become more problematic and harder to control. However, there is no immediacy when ALPR systems detects suspected shoplifters. The cameras record the vehicles and people. If a crime is reported, the store can confirm which vehicles were on the property at the time and relay that information to authorities.
“Retail crime is a complex and sophisticated challenge, with trends that continue to metamorphose,” University of Florida Research Scientist and Loss Prevention Research Council Executive Director Dr. Read Hayes said. “The retail industry is working in lockstep with the research community and solutions providers to develop, test and improve the next generation of asset protection tools and strategies in the ongoing battle against ORC.”
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Why privacy advocates say shoppers should pay attention
Advocate groups like the American Civil Liberties Union (ACLU) argue that license plate readers can create detailed records of where people go, how often they visit certain stores and their social network.
They pointed to an article by 404 Media that local police were carrying out searches on the Flock cloud on behalf of ICE.
“Flock sells their cloud-connected cameras to police departments and private customers across the nation, pulls the license plate readings they collect into their own servers, and allows police to do nationwide searches of the resulting database, giving even the smallest-town police chief access to an enormously powerful driver-surveillance tool,” Jay Stanley, ACLU senior policy analyst, wrote.
For customers, the growing use of AI-powered license plate readers means a routine trip to the hardware store could also involve having their movements and vehicle information recorded and stored.
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Brian Baker is an Associate Editor with Moneywise. He has been a media professional for over 20 years.
