Are Your Mannequins Spying on You?

Bianna Golodryga explores new facial recognition software hidden in mannequins to profile shoppers.
2:58 | 12/11/12

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Transcript for Are Your Mannequins Spying on You?
We're going to have more fun now. Talking about mannequins, watching us right now. There's a real reason wh showing you this. It turns out store mannequins, where you're shopping this holiday season. And they're looking at us right now, bianna. Is trying to track what you buy and who is buying it. I'm frightened. It's a bit creepy. But technology at work. Mannequins aren't just there to show off merchandise anymore. This the really creepy now. They can help retailers gather important marketing information. So, I hit the stores to find out just how these mannequins work and whether customers are buying into this new technology. With the holidays just days away, americans are spending countless hours in stores. Perusing, running, even fighting for that gift. Would you believe that the solution could be right before your eyes. Actually hers. Meet the latest high-tech weapon in the retail wars, featured at the recent association for retail showcase. She uses visual technology to gather information on its customers. She's something lifted right out of "minority report." Welcome back to the gap. How did the tank top work out for you? The camera inside the eye. And the camera is tied to face recognition software. Reporter: This is how the mannequin works. Let's say a customer walks through the door. And sees a dress that he or she likes. As the customer is observing the dress, the mannequin is on observing the customer. The mannequin is made by one of the world's leading mannequin manufacturers. Their lips are sealed when it comes to which of their giantses are using them. And while they wouldn't let us take a peek inside, they gave us a tip. You can see the cameras. There's holes in the pupils. Reporter: These dummies don't come cheap. They cost $5,000. But alnex is hoping that stores will be willing to pay big bucks to get an edge. Buying into the idea that the more they learn about their shoppers, the more they'll sell. That's the way technology is going to advance. Before you go home, your refrigerator will be able to tell you you're out of milk. You can stop on the way instead of finding out later. Reporter: At h&m, reaction was mixed. They're invading privacy. I think it's smart, actually. Go back to the drawing board because the camera in the mannequin thing is creeping me out. Reporter: She's not alone. The mannequins use facial recognition software that's similar to used by police and law enforcement. The company that makes these mannequins say they do not profile customers. They don't collect any of the information. They don't store it. It's just to have for the retailers. A little unnerving, nonetheless. Good to know it's out there. Now, to the device that we

This transcript has been automatically generated and may not be 100% accurate.

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