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Sunday, June 23, 2002 Dark side of supermarket 'savings cards' Privacy advocates worry about misuse of personal, purchase data Posted: June 23, 2002 1:00 a.m. Eastern
By
Jon Dougherty
The supermarket chain store
Albertsons is planning
to roll out new "preferred savings cards" for customers, despite concerns
of some shoppers and privacy advocates.
According to a company memo
obtained by WND, the program is slated to begin Wednesday in stores located
in Utah, Wyoming, northern Nevada, Idaho, Montana and North Dakota – areas
that, says one privacy analyst, traditionally dislike programs that require
consumers to surrender personal information to companies that maintain
it in electronic databases.
The program is being offered
"to increase the value for customers and build a long-term customer relationship,"
the memo said.
Consumer privacy advocate Katherine
Albrecht, head of Consumers Against Supermarket Privacy Invasion
and Numbering, or CASPIAN, a group opposed to grocery store electronic
savings cards, says even though the programs are voluntary, they are not
benign.
"There are some long-term,
potentially creepy consequences of allowing [supermarkets] to collect
data on people," she said.
"Some of the more obvious short-term
privacy concerns are that the information is subpoenaed and used against
people in court," she said. "There was even a story recently saying the
FBI was trying to profile the Sept. 11 terrorists on the basis of their
shopper-card records."
Also, she said there was evidence
some of the programs really didn't save consumers money, as well as cases
where consumers that didn't want to surrender private data to supermarkets
were punished by being charged higher prices.
"This idea of actually being
profiled as a result of our shopping records is a scary proposition,"
said Albrecht.
Albertsons could not be reached
for comment, but according to the memo, part of the company's marketing
plan is offering to donate a quarter to the Susan G. Komen Breast Cancer
Foundation – up to $100,000 – "for every customer who signs up" for the
electronic savings card.
In an interview earlier this
year, Carolyn Mahoney Lopez, director of media for the Catalina Marketing Corporation,
a company that collects and analyzes shopper data, said her firm's participation
in such programs is harmless.
Catalina "provides customized
offers and relevant coupons to customers by using actual purchase data.
By providing offers that are based on what shoppers typically purchase,
we are able to provide more value than with traditional mass-delivered
coupons," she said.
"However, it is important to
note that we only track by the UPC number and frequent shopper card number,
not by any personally identifiable information such as name, address or
other demographic information," said Lopez. "Our system only tracks the
numbers and delivers promotions when those numbers are scanned."
"Our retail partners who offer
frequent shopper cards obviously have personally identifiable information,
such as the name and address that the customer voluntarily provided to
participate in the program," she said, but added that they don't sell
or otherwise share the information.
Albrecht says such positions
miss the real point.
"The point is that there are
many, many things that nobody's got any business knowing about anybody
else. That's called privacy – the right to an unfettered, unmonitored
personal life which is not subject to the scrutiny of others," she said.
"How about putting a tracking
device in your car? Who cares if they know where you go?" said Albrecht.
"Heck, why not let them install a camera in your shower?"
Albrecht believes such information
will eventually be sold or given to insurance companies and others who
could then be in a position to make a decision about other aspects of
providing consumer services, perhaps to the detriment of some consumers.
"It's not far in the future
when all this information is going to fall into the hands of, say, insurance
corporations," she said. "Software programs already exist and are in place
to take this shopping information and link it up with particular diseases,
such as high blood pressure, heart disease and diabetes."
The implications are clear,
she said. "Insurance companies will use this information against you when
making decisions about your policy."
Related story:
Supermarket
cards threat to privacy?
Jon E. Dougherty is a staff
reporter and columnist for WorldNetDaily.
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