We all want to save money when we shop, but what if it means allowing our purchases to be tracked? Some will say “No problem -- as long as I’m saving money.” Others will say “It depends. How do I learn more?” When you make privacy your policy, you’ll always want to learn more about how your favorite stores are handling your personal information -- starting with your local supermarket.
Consider the supermarket card that offers savings on selected store items (usually weekly specials). You may be charged a higher price for those selected items if you do not have the card. Thus, if you purchase even one of the selected items, you will save money. If you don’t, you won’t. In either case, the cashier will ask to scan your card so that all of your purchases, whether or not they are subject to a card discount, can be tracked by the store computer system and added to your profile.
What’s the big deal if the store knows what brand of potato chips you like? Maybe they will even send you a coupon. But what if, as reported a few years ago6, the store is using the information to build nutritional profiles of individual customers and is considering partnering with several HMOs to exploit these profiles? You may not be so comfortable with this second scenario. At a minimum, you’ll want to know more, and the learning process begins when you are offered an application for the card either online or in the store.
A. Your Store Profile
When considering signing up for a store discount card, review the application carefully. Check the application form and any related forms like the store’s privacy policy or program terms of use. Does the application tell you that the store will be creating a profile on your identity and your purchasing habits? You may see a statement to the effect that the store records your purchases to help them tailor their marketing offers to your needs. That means you are being profiled and it is up to you what, and how much, information you allow in your profile.
Start with the basics: name, street address, e-mail address and telephone number. If you don’t provide these, you won’t get the card. The store will say it needs this information to communicate with you. However, if you say you don’t want to receive marketing communications from the store (it’s called “opting-out”), they are likely to insist that you still provide this information to get the card. The application may ask you to enhance your profile with information about your age, household size and estimated weekly food spending. What does this have to do with getting an occasional saving on a weekly special? Good question. If you are uncomfortable with providing any of this information, ask the store why it is needed. If you do not agree with the answer, do not provide the information. However, be aware that you may not be able to get the card.
Finally, the application may ask for sensitive personal information such as a driver’s license number or a Social Security number. You should only provide this type of information if the store needs it for a specific purpose like verifying your identity for checking cashing.7 If you don’t want to use the card for check cashing, you should not be required to provide this information. If the store insists on this information, speak to the manager about your concerns.
B. Sharing Your Information With Others
You have a right to be told before you sign the application what information may be shared, with whom and for what purpose. Sharing means that the store will give the information to an outside company, whether or not there is any money exchanged between the parties. It does not necessarily involve selling, renting or leasing of information, but each of those actions is a type of sharing. Stores will typically share your information with companies that act as the store’s agent in marketing to you or fulfilling a particular request. Usually, the store will enter into a contract with its agent to restrict the use of your information and to ensure that the information is securely kept.
The store may also share your information with outside companies through co-promotions. You need to understand what this means in terms of the further exposure of your personal information and whether you will be subjected to further marketing (read: junk mail) in areas unrelated to your store purchases. If the store’s disclosure tells you simply that it does not sell or rent your information, it hasn’t completely answered your question about sharing. If the disclosure tells you the store does not share information with “non-affiliated” companies, you will still want to know what it does share with affiliates, and who those affiliates are. You have a right to opt-out of this sharing except when the information may be pertinent to a legal proceeding or a law enforcement investigation and may be obtained through subpoena.8 You should find this opt-out provision on your application. Opting-out may mean fewer unwanted solicitations and offers from outside companies but it may also mean that you won’t get any coupons or special offers from these companies relating to the products identified in your profile.
Whether in the supermarket or online, when you make privacy your policy you will dig deeper to learn about the collection and uses of your information. You will take the time to evaluate or weigh the potential privacy risks with the potential benefits carefully before you act. For you, it means greater understanding, more control, and smarter choices. For the companies with whom you do business, it means that a higher level of business practice and communication will be required to win and maintain your trust and your business.