This is one of those things where I don’t really agree with the law on.
Shoplifters come back again and again and many try to screw with checkout people with coupon scams or simply know where in the store to go to hide the things they want to steal.
Verkada (a company that supplies cameras and the software to use them) has this kind of functionality built-in. All it does is let you setup alerts for people who are persons of interest. It’s not perfect but anyone paying attention can tell that the person on camera being alerted is the same as the POI or not. It doesn’t eliminate the human interactions needed to actually prevent shoplifting, but it does let you know who to focus on when they come in.
Normal store employees don’t get access to things like camera systems. Security / loss prevention employees are typically the ones with access and who would see a notification and then watch for someone to put things in a purse or pocket and try to walk out of the store.
So all they’re saying is “do not scrutinize this known thief unless you yourself remember them” which is pretty absurd. If someone doesn’t steal there isn’t a problem, and if there is the footage will back up the innocence (or guilt!) I don’t even know how this became a case.