Privacy::Protection
Issue 1
November, 2004

This month's question: Why do Supermarkets want to know about me?
News You Can Use: a new shoppers blacklist, the perils of getting insurance
quotes online, spray that beats red light cams, stopping army recruiting
brochures, and more

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Welcome to the inaugural edition of Privacy::Protection, a monthly newsletter
on privacy and consumer protection for the 21st century. Each month, I'll try to
answer questions you send me and summarize the latest news and hottest tips
you can use to make your daily life safer and easier.

Hope you enjoy this first edition!
Amanda

Oh, and if there are any questions you'd like answered in future editions,
send mail [newsletter AT
amandawelsh.com].

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This month's question:
What happens to the information collected by my supermarket loyalty card?

The good news is what doesn't happen to it. Data collected from your
shopping habits is not sold to direct marketers -- most of the time. An
anti-card group has noted a few cases where loyalty data has been sold.
But that's the exception not the rule.

The truth is a bit more devious. Grocery stores operate on pretty slim margins.
They also have to stock a pretty wide range of goods. Deciding to stock the
right items can mean the difference between seeing a profit and Chapter 11.
Although not stated as the purpose of the program and certainly the name
doesn't suggest it, "loyalty" programs are an attempt to track a population of
shoppers to understand how different people buy. Shoppers are grouped
according to their purchase habits and evaluated. Once a store identifies its
most profitable customers, it works to offer goods and services which appeal
to those customers to keep them spending.

Which is why one store is on record as saying it doesn't care if you give them
a fake name for the loyalty card, just that you sign up.

Of course, if you do sign up for a program using your real name, your shopping
profile is stored and can be subpoenaed. Just a few months ago, a firefighter was
arrested for setting fire to his own house when loyalty card data showed that he
had recently purchased fire starters. A few years ago, the DEA wanted to build a
case against suspected drug dealers and perused their shopping club data to see if
they purchased a lot of plastic baggies (to put the drugs in, you see). Safeway, for
one, says up front that any one with a court order is gonna get your data...

If you think this might be a problem for you, here are a few card swapping schemes
you might want to investigate. By the way, if you use Safeway and want to see just
what they know about you, grab your card and check out your shopping history
under 'favorites' in the online shopping section of their website.

NEXT ISSUE: Can spyware sabotage my online holiday shopping?

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News you can use

The ACLU's flash animation on pizza privacy (really).

If you make a lot of clothing returns, you're probably on a new blacklist.

Look out for the privacy policy if you get insurance quotes online. You may be
giving away more than you bargained for.

Federal Do Not Call list has survived the legal challenges from marketing groups.
Learn how to sign up if you already haven't!

California now has a spyware bill. (more on spyware next issue)

Spray that helps you defeat traffic cameras. Heard about it from a spam email
but it seems legit.

For libertarians keeping score, another section of the Patriot Act was declared
unconstitutional. (you have to

Important info for parents of teens. How to control whether or not you get glossy
recruiting brochures from the military.

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Privacy::Protection is a free monthly newsletter providing news and tips on
privacy and information protection issues. Back issues are available at
[http://www.amandawelsh.com/newsletters].

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Copyright (c) 2004 by Amanda Welsh.