Supermarket Invasion

by

Robert Booth

This page was submitted as a class assignment, Fall 99

 

In a world where much of the hype over privacy concerns centers on issues like encryption, cell phones and email, there is one area of every day life that has been largely overlooked. Yes, local supermarkets chains are quickly becoming the next hotbed for privacy advocates. The debate concerning supermarket "discount" cards is one between the privacy of shoppers and the ability of a store to provide customers with the goods they desire. These card systems are not new, but with over 37% of the supermarkets using these systems now and another 30% planning to use them in the future, more people will be subject to lost privacy in the future[1].

 

When a person buys groceries at a supermarket with a card system, the checkers are quick to promote the store's card. The customer fills out a short form, including standard information like name and address as well as some purchasing preferences and in return they are given a plastic card with the company logo.

 

One of the major objections to this card system is that the customer is coerced into applying for the card, and thus giving private information to the store. Typically, these cards are marketed at "discount" cards by which using the card affords the customer with lower prices.The problem is that these prices are typically just the normal prices and nonmembers are charged higher prices[2]..

 

The result of the card system is a trade off between privacy and service. Everyday tracking purchases over time can give clues as to one‚s health, drinking habits, income and self-image. Data warehouses have begun to sell and exchange customer information without their knowledge, thus leading to a serious loss of privacy. Corporations claim to not share customer data, but there are currently no laws governing this sharing of data. Coincidently, there have been some noted cases where data was turned over to law enforcement officials[3]..

 

There are many possible advantages to such a system. Custom ads can be sent to customers. Additionally, if a store knows that someone always buys specialty meat on the first Sunday of the month, and then they can be sure to have it on hand. Rewards can also be sent to a store‚s best customers as defined by the card system. This is somewhat similar to frequent flyers miles, but just on a larger scope because everyone buys groceries regularly.

 

The proliferation of such systems has lead some to blindly submit their privacy while others have taken to giving false names and addresses. It remains to be seen whether or not corporations use this information responsibly, but I tend to regard such card systems as a coercive way for corporations to learn a lot about you. In the future, the possible merging of card systems across different types of stores could possibly lead to super efficient marketing, but at a huge cost of privacy. One possibility that I can see in the future is a "Longhorn Card" which is afforded to students of UT. Student would be practically forced to apply for the card or pay higher prices at local merchants. Corporations and law enforcement would then have an extremely informative profile of UT students. For example, if I were to buy a bunch of plastic bags to bundle Halloween candy in, law enforcement might misinterpret that information in surmising that I am a drug dealer. I would have little control over me being a target for police surveillance or even greater loss of privacy, all because I wanted to give the local kiddies some candy.

 

In summary, it is not hard to imagine the possible abuses of ungoverned purchasing information as it spreads across America. Of course many Americans are not concerned with the cards, because they just feel they are getting a good deal from stores, while the stores are actually getting a good deal of information about their customers.

 


Background information