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Could Government, Law Enforcement Turn Your Store Loyalty Card Data Against You?

Oct. 18, 2012 9:53am Liz Klimas

The Pros and Cons for How Stores Use Loyalty Card Data

Loyalty cards from a variety of sources. (Image: Wikimedia)

Open your wallet and take out your keychain. How many grocery or retail store loyalty cards do you have? It seems nearly every cashier is asking these days for a card as they ring you up. The cards come with consumer incentives, but how else is the information you provide about yourself and your purchase history being used?

How about leading to your arrest? (It’s happened). Or being used in an employment check? (Consumer rights groups think it’s conceivable).

Or even being used by the government to crack down on communities they believe should be making healthier choices? Although this might be considered a bit of an Orwellian viewpoint, it is something Money Crashers.com founder Andrew Schrage said he could see happening, given recent government activities like New York City’s mayor banning sugary drinks above a certain size and Michelle Obama’s new guidelines that limit calories in school lunches.

“I can absolutely see them using this information to target communities with whom they disagree with their purchasing choices,” Schrage said.

The advocacy group Privacy Rights also sees room in the future for non-marking uses of your information from these types of cards, such as government surveillance, employment background checks, law enforcement investigations and insurance company research.

But this could already be happening to an extent already.

What Do These Cards Collect?

First, consider the information inside these databases. The primary information collected when signing up for one of these cards is your name, birthday, address and telephone number. Depending on the card and the services provided, like if you got checks cashed, some could go as far to require social security number, checking account number and/or driver’s license number.

Once you’ve used your card during purchases, it begins making a history of what you’ve bought. Lisa Marie Walls, a vice president and digital strategist for the Philadelphia-based advertising agency Tierney, which is helping a high-end grocery store in New Jersey set up a more advanced loyalty card program, told TheBlaze the store will be collecting information about how the customer paid for purchases as well.

The Pros and Cons for How Stores Use Loyalty Card Data

This image shows a “Bonus Card” for Giant Food Stores. (Image: Giant)

How Your Information Could Be Used Against You

Where things get interesting is just how stores use this information.

Although use of contact information might be welcome when it results in supposed savings, other uses could raise eyebrows. Some stores state they may be required to provide law enforcement with your information. Schrage described a case where the a Safeway store once provided customer information to police in an arson investigation. It led them to the wrong person.

The Pros and Cons for How Stores Use Loyalty Card Data

(Image: Safeway screenshot)

Privacy Rights has this and more examples of how customer information has been obtained by authorities:

[...] in a Washington state case a few years ago, a suspected arsonist was arrested after police tracked down a fire-starter unit with a Safeway label attached. Safeway provided police with his purchase history. The charges were later dropped, but the point is that the store gave access to the customer’s personal information to authorities.

And in another case, the U.S. Drug Enforcement Agency subpoenaed records from the customer database of a supermarket chain in the Southwest looking to see if certain individuals had purchased large quantities of plastic bags commonly used in drug transactions. (Robert O’Harrow, “Bargains at a Price: Shoppers’ Privacy,” Washington Post, Dec. 31, 1998, p. A-1.)

The Electronic Privacy Information Center too has voiced its concerns about profiling occurring through cards like these. It included an example of a California store that tried to use its loyalty card records in a court case involving a customer who slipped and was injured in the store. Von’s Supermarket believed the customer was under the influence of alcohol at the time and wanted to use its purchase data to support this claim. This evidence was ultimately never used in court.

In July of this year, it was also revealed that the British government was discussing with supermarkets how data collected by loyalty cards could be used to “nudge” consumers toward healthier purchasing habits. It is unclear whether supermarkets would comply with the idea.

How Your Information Could Be Used to Help You

It’s, of course, not all bad though. At its most basic level, stores track what you buy in order to learn trends of purchases so they can stock what you buy most. They also use it to target customers with more specific ads, specials and messaging through in-store coupons, mailers and on the Web.

Schrage, who has been featured recently by many as a successful, young entrepreneur for the growth of his website, told TheBlaze grocers often use purchase tracking to inform customers of recalls. He points out the Center for Disease Control and Prevention has used information from loyalty cards to contact customers who purchased contaminated products in recent years as well.

Another benefit to customer cards is if you lose your keys. Stores are often able locate you, if your card is kept on a keychain, thanks to their database with your contact information, Schrage said.

Some coupon cards, like that Walls is working to help a store implement, are going beyond helping customers achieve a lower price and looking more at enhancing the overall experience. She not only said that they’re looking into things like using a smartphone and GPS to alert the customers to specials based on where they are in the store but also to information like a fresh batch of salmon that was recently brought in or an organic granola pairing to go with the organic yogurt you’re near.

“Today, people want something of value beyond coupons,” Walls said. “People want great recommendations. They want inspiration.”

What Can You Do

Although customers might be surprised to learn loyalty cards aren’t just to provide them savings and for a store’s marketing purposes, privacy policies do include more specific information for how data is collected and used. Schrage said most people just don’t read these policies. A similar sentiment is seen on the Web when people sign up for services like social media and later are surprised when their information is used in ways they didn’t expect.

“If a consumer is concerned about how their personal information is being used, then they need to take the time to read the privacy policies,” Schrage said. “A grocer is required to explain their actions in such policies. Having said that, there is a key loophole that many grocers take advantage of: They list in their privacy policy that they don’t share your information with third parties, leading the consumer to think that their information is secure. However, once a grocer partners with another company, they can legally share that information without violating the policy.”

Most stores have their privacy policy printed in a pamphlet, but they’re also often available on corporate websites. Some stores also allow customers to request their personal data not be disclosed.

If you’re not comfortable with how your information could be used, you might avoid signing up for loyalty cards altogether. Schrage said the net savings of these cards is “debatable” anyway.

“There are times when a grocer will pad the price of a certain item and then offer a discount on it to loyalty customers, making the net savings negligible. Some experts claim you can get your groceries for just as cheap solely through the use of coupons in the Sunday paper,” he said.

TheBlaze contacted grocery stores like Giant Food Stores and Kroger, both of which have cards described in this article. Neither returned our calls for information regarding their programs.

In CONTROL, Glenn Beck presents a passionate, fact-based case for guns that reveals why gun control isn’t really about controlling guns at all; it’s about controlling us. Find out more HERE.

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Comments (74)

IDIDBUILDTHIS
Posted on October 18, 2012 at 12:00pm
Use CASH and the word No.

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- bobdiamond
  Posted on October 18, 2012 at 12:38pm
  This is the next logical step after Michelle’s lunch nazis. Read political commentary at: http://smallcraftadvisorychronicles.blogspot.com/
  
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- objectivetruth
  Posted on October 18, 2012 at 12:40pm
  You got that right.I’d also say that maybe in certain cases you don’t want to use your bank card either.Not because of tracking purposes but theft purposes as well as holds.Always check the policy of the station you fill your car at.Many are prompt these days.However they can place a larger hold than the purchase itself until it clears.If they aren’t prompt this could be a matter of days until you get the use of your money.Either pay cash or make sure you have extra in your checking account.
  
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- AnAmericanToo
  Posted on October 18, 2012 at 12:50pm
  I am constantly pestered by the clerks to sign up for their company’s stupid ‘specialty card’. I ask, “Why?” Because I am told: 1) I will get a discount immediately; and 2) they will send me coupons designed JUST for me. Hmmmm…so in other words the store is over charging me in the first place? And, I have NEVER heard of anyone getting a special coupon based upon their purchase.
  
  I tell them I don’t want their card. Some clerks tell me it is for their inventory control. Really? They have bar codes on their products and should be able to tell what product moved into and out of the store without having its movement linked to me.
  
  Typically some idiot behind me in the check out line has a card. So I yell out, ‘anyone with card want my points?” and some goof head will whip out their cards to get my points so they can get lower gas at the pump. I get the discount for my purchases — which apparently were grossly over priced since someone can get points for giving up their privacy.
  
  I long been concerned with the ‘food police’ system showing up at the check out line and the system not allowing me to check out with “peanut butter’ because the medical records are linked to the food purchases and someone in the family is allergic to peanuts. (hypothetical example). Or, no sugar purchases for you because you aren’t allowed based on medical records.
  
  Too bad these helpful stores won’t label clearly label their products as being GMO or not.
  
  Report this comment
- ObamaForward_OverTheCliff
  Posted on October 18, 2012 at 5:12pm
  “Could Government, Law Enforcement Turn Your Store Loyalty Card Data Against You?”
  
  Pay no attention to common sense. Use your information collection card now.
  Remember … no card no discount. No card no discount. No card no discount.
  
  Report this comment
- Brooke Lorren
  Posted on October 18, 2012 at 6:17pm
  Well, if you’re in California, Vote Yes on Proposition 37 and maybe the products will start getting labeled if they have GMOs in them. More than likely, they’ll use the same packaging nationwide.
  
  Report this comment
- dmerwin
  Posted on October 19, 2012 at 11:36am
  OR, buy your vegetables and meat (lean chicken or turkey) and tofu with the store card and make a separate transaction for your ammo and ice cream.
  
  Report this comment
AJAYW
Posted on October 18, 2012 at 11:59am
The goverment is out of control

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poetlaureate
Posted on October 18, 2012 at 11:54am
When Al-Qaeda attacked
And our embassy fell,
Our Commander-in-Chief
Was AWOL.

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- Bonnieblue2A
  Posted on October 18, 2012 at 12:06pm
  Cute rhyme despite its inaccuracy. Obama is rooting for radical Islam. For him the death of an Ambassadoe is a political inconvenience, nothing more.
  
  Report this comment
- Former Patriot
  Posted on October 18, 2012 at 6:21pm
  I have to correct you on the “Our Commander in Chief” comment. obama IS NOT my president, I don’t recognize him as legally holding the position and I also question his citizenship. Nope, I’m not a birther- I just know a bit about laws.
  
  Report this comment
ImChiquita
Posted on October 18, 2012 at 11:39am
I already knew this. That’s why certain items are paid in cash – without my card.

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- Johnny Cocheroo
  Posted on October 18, 2012 at 1:41pm
  Hmmm…. and exactly what items are those?
  
  Yeah, I use cash too.
  
  Report this comment
Mil-Dot
Posted on October 18, 2012 at 11:36am
I am often asked for my phone number when I purchase things at various stores. I NEVER fall for that trick. I knew years ago that it was nothing but govt data mining and spying on the American people.

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2smart
Posted on October 18, 2012 at 11:28am
I have a few loyalty cards but I was able to aquire them without signing up and giving personal information. I saw the potential for trouble when they first appeared and knew that it would come back to bite those who absently told all for a small discount on there purchase. And like Randy in his post above I would reply that “I don’t play cards” when asked if I wanted to sign up. I got some strange and confused looks when I politely declined. Back in 02, Albertson’s implemented there reward card program after having used the lack of a reward program as an advertising incentive to shop at there stores. I wrote the main office and complained about their sell-out and received a form letter from them explaining that everybody else was doing it and there customers wanted it. I think that there customers just wanted low prices, screw the card. Anyway I took my $3700 yearly grocery budget to someone else who was interested in selling groceries and didn’t play card games.

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- Mil-Dot
  Posted on October 18, 2012 at 11:34am
  They are using them to track what you buy. That is what it is all about. The govt goons are ordering the merchants to do it or else. The govt is so paranoid about the citizens and they know we think they have failed us. They will do anything to cling to power.
  
  Report this comment
- yooperjo
  Posted on October 18, 2012 at 11:47am
  If you are indeed “too smart”, you should know the difference between “there” and “their”. “There” is an adverb, and “their” is an adjective. In identifying the store, the correct word would be “their” store, not “there” store. Just saying.
  
  Report this comment
- AnAmericanToo
  Posted on October 18, 2012 at 12:53pm
  Then the letter you received claiming that ‘everyone else’ wants the card was …a lie. I know many people who have an Albertson’s store in their area and they DO NOT use the consumer tracking cards. These people do NOT want the stupid cards.
  
  Report this comment
AxelPhantom
Posted on October 18, 2012 at 11:22am
A few years ago, after 9-11, my husband sent one of the guys from work to do a computer job for the government that required a rather high level of security clearance. After clearing security, a couple of guys motioned him over to them. They said to him “what do you think your friends are working on right now? Give us the name of a friend.” He did, and they pulled up a live shot of his friend typing away on a blog. “Give us another name.” He did once again, and this time they showed him a screen where the person was typing away on a word project off line. The message to this particular guy was “don’t even think about breaking security. We WILL find you.” Make no mistake they have tremendous power already.

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- Dont-hate-on-me-2
  Posted on October 18, 2012 at 11:44am
  LOL but they can’t figure our what happened in Libya.
  
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- CulperGang
  Posted on October 18, 2012 at 11:47am
  Make no mistake God gave man a “FREE” spirit. Soon as the sheeple realize that “dying” is door to another realm, they will not put up with these power hungry, greedy beast. They’ll face them down and take them out WITH THEM. Ever wonder why some of these third world people have this “martyr” complex??? they know that living free is worth shucking off the body and stepping into the doorway.
  NEVER COWER TO TYRANNY…….send the beasts down to hell whence they came.
  
  The CONTITUTIONALIST will restore America and send the GLOBALIST tyrants to hell. United FREE people out number these globalist beast who should be in chains. But, we have too many people in office that ARE COWARDS to step out ENMASS.
  
  Report this comment
Jenny Lind
Posted on October 18, 2012 at 11:20am
I know some of it is irritating, but having worked the other side of the counter, it is not fair to be rude to the poor cashiers. Not their fault, and remember, they are working, not taking tax money, so give them a break. Let the Dems and others be nasty, let’s be kind-and better.

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JohnGalt007
Posted on October 18, 2012 at 11:07am
Another great thing that you can do with this is when you are in a custody battle you can track your spouse’s alcohol purchases, amounts and dates.

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- objectivetruth
  Posted on October 18, 2012 at 12:35pm
  Not unless they use the card.Anyway the only way to track that accurately would be to track her bank card.Once again also useless.Not unless your name is attached to it or she gives permission.Otherwise its a federal felony.Even if she did give you permission it would still be based on the card.If she doesn’t use the card its still useless.
  
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Ilikepeople
Posted on October 18, 2012 at 10:42am
They’ll use scanners against people, even to the extend of reading the human brain so they know whether or not you are praying inside your mind. If you think too much they will fine you. If you can imagine it, then there is people who want to do it.

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- The-Monk
  Posted on October 18, 2012 at 10:52am
  @Ilikepeople
  “If you think too much they will fine you.”
  
  You’ve never been fined have you Timmy?
  
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- objectivetruth
  Posted on October 18, 2012 at 12:48pm
  Yeah I can just see that now.They attempt it on me.They get shot 250 feet from the machine and are left there in absolute horror.I am to assume by your post that it reads everything right?I can see it now.Why didn’t you lock her up?I’m petrified and then gives their superior the session tape.At this point in time the superior agrees before fainting and going into true shock.And they called her hannibal gump.Forrest lecter.
  Screw the thought police.Hate to tell you and everyone else this.It doesn’t provide insight as to how or why a person thinks the way they do.Without that, you and the rest of em, are truly screwed.
  
  Report this comment
Ilikepeople
Posted on October 18, 2012 at 10:40am
Who didn’t see this coming? They’ll use any RF transmitters on the water meters, and electric meters against people too. They’ll use GPS against people, they’ll use I.D cards against people, and anything created will be used against people.

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- objectivetruth
  Posted on October 18, 2012 at 12:54pm
  Yeah they already have used electric meters against people.I do however think it requires more than a passing glance to get the info from the electric company.
  
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Jive Mickey
Posted on October 18, 2012 at 10:39am
#1 Don’t shop at store that require them.
#2 If it can’t be avoided, apply for a card … Felix Montmorency, 2468 Whodoweappreciate Dr., Yourtown, your state. They will have quite a dossier on this guy Felix.
#3 Don’t use a credit card … pay cash … until they make it illegal in the next few years.
Wear Groucho Marx glasses to confuse video surveillance.

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Jive Mickey
Posted on October 18, 2012 at 10:31am
“Could Government, Law Enforcement Turn Your Store Loyalty Card Data Against You?”
You mean that some rocket scientist just figured this out?
That was the whole purpose of getting everyone to use them in the first place.

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RJJinGadsden
Posted on October 18, 2012 at 10:30am
Just hope some lawyers pull a rabbit out of their hats and use the Roe v Wade ruling against this. You know, that “Privacy” issue?

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TRILO
Posted on October 18, 2012 at 10:19am
Sure these have their good points, but as with anything when in the wrong hands a lot can go bad, verr bad. CISPA gives these companies federal authority to hand over information without a warrant and immunity from prosecution if the information given falsely accuses an individual.

Our country is moving towards a total authoritarian state with the state monitoring your every move. With the Dodd-Frank bill they are tracking your credit and debit card transactions. The stores keep track of your food and other purchases you make with these cards that they are obviously turning over without warrants. If you use cash you are now considered a potential terrorist by the feds and state governments. By now I am sure the feds know everyone who has food storage and those who exercise their 2nd amendment right.

What a lovely country we now live in. The events of 9/11 has given our government the ability to turn their surveillance inward on the citizens of this country; and the fools have allowed it. Our founders and history warned us but we did not listen.

“They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.” Ben Franklin.

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mildot rider
Posted on October 18, 2012 at 10:18am
This is what the new spy center in Utah is for…to track all Americans and then ultimately use that information to “nudge” your decision making to the NEW WORLD ORDER! By force if need be!

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- objectivetruth
  Posted on October 18, 2012 at 1:15pm
  What do you think will happen if everyone stopped using store loyaly cards bank cards credit cards or anything else trackable?It stops the nuts in their tracks.You can’t track what no longer exists.They would be out of a job instantly wouldn’t they?You can’t force anyone.There will be no way to find them.It wouldn’t matter even if there were.Many would rather die than be forced into those goons belief system.
  
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justangry
Posted on October 18, 2012 at 10:15am
It’s certainly possible with socialists with R’s and D’s after their names. Them f**kers hate privacy. It’s a burden to them.

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Gary_K
Posted on October 18, 2012 at 10:15am
Caeds, we don’t need no stinking cards.

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- Gary_K
  Posted on October 18, 2012 at 10:46am
  I wish we could edit our typos.
  
  Report this comment
TNT75
Posted on October 18, 2012 at 10:13am
Insurance companies buy this information from stores and use it in the clue report. Example. I have a store card from Albertsons or some other store and I am going to buy health insurance, the insurance company can look at me and see I am overweight and see that I regularly purchase twinkies or cigarettes so they will charge me a higher rate. if they see I am buying fruits and veggies and am skinny as a rail, they will give me a lower rate. Gets very dangerous if you buy alcohol on these cards and go for car insurance. They can see that you buy a 12 pack of beer a day, week, month whatever and try to base an analysis on the probability that you drink and drive and determine your rates. This is just for insurance companies. The government can get much more access than they can and if you don’t believe they are doing it than you are naive.

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randy
Posted on October 18, 2012 at 10:11am
I get so tired of hearing from just about every cashier …..
DO you have a rewards card? NO!
Would you like to sign up for one? NO!

I need to start wearing a t shirt that says “NO I do not want one of your rewards cards!! and if you ask me if I want one, I’ll set my items here and you’ll have to put them back on the shelf.

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- RJJinGadsden
  Posted on October 18, 2012 at 10:33am
  I usually just make one statement, No, and I don’t want one. But, I do like the T shirt idea.
  
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- The-Monk
  Posted on October 18, 2012 at 10:50am
  Hi RJJ,
  
  In Tampa we have these also. I always said no until I just took one to fill out later. I never filled it out and it worked just fine. Here’s the strange part. I noticed the cashiers always have one behind the counter and will use it when the customer was the same race. White, Latino, black…. it didn’t make a difference. Then I noticed the lines started getting segregated just because of the cards the cashiers had behind the counter. Really weird!!
  
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- The-Monk
  Posted on October 18, 2012 at 10:58am
  Hi RJJ,
  
  Here’s another issue I noticed. The day they put the “price and discount” sign on the item to use the card for that items discount the price goes up.
  
  Example; a can of soup that normally sells for $1.85 will have it’s price jacked up to $2.25 and the discount reads “Save $0.30 on this item when you use your card”… and people are so asleep they fall for it. : (
  
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Tigress1
Posted on October 18, 2012 at 10:08am
For a while I bought the newspaper solely for the coupons. The newspaper itself was worthless. Then when everyone else quit buying the paper the businesses quit buying ads and putting in coupons. Now there is absolutely no reason to buy the paper, but coupons in the mail are few and far between. 20 cents off a purchase of 5 items isn’t worth the time to clip it anymore.

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jcldwl
Posted on October 18, 2012 at 10:08am
Stopped using them years ago. Don’t do the surveys they give you either. Just another way of tracking. Use cash and don’t give your phone number when the checker asks. I can’t get off the grid but I can quit letting them know when and what I purchase. At least until they start scanning us.

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- mildot rider
  Posted on October 18, 2012 at 10:20am
  Use cash and just make a phone number when asked.
  
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- RJJinGadsden
  Posted on October 18, 2012 at 10:36am
  MILDOT RIDER, I know that the cashier is just doing what he or she has been told to do, so I don’t really try to be rude. But, I simply tell them No, you cannot have my phone number. A number of stores around here over the past few years have been asking for our Zip Codes. I just give them the last digit and let them figure it out.
  
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momrules
Posted on October 18, 2012 at 10:05am
Everything we do now is being monitored and tracked. Cameras all over, our credit and debit cards, cell phones, the internet……….just how free are we anymore?

In my opinion, not free at all. Big brother is always watching, listening and waiting to use our daily life against ourselves.

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SamIamTwo
Posted on October 18, 2012 at 10:01am
Capitalism fusion…

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Snowleopard {gallery of cat folks}
Posted on October 18, 2012 at 9:59am
Of course the government will abuse it, state, county and Federal. They take anything benign or good and turn it into a system of abuse in a heartbeat for their means of control.

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