Physical Privacy: Skip Loyalty Programs
Imagine a store saying, "Congratulations! You are no longer just a loyal customer. You are now our product to sell too." If companies admitted this, most people would wisely walk away fast. Behind the scenes, that’s exactly what many loyalty programs are doing.
A recent Consumer Reports investigation revealed that Kroger, the largest U.S. grocery chain, allegedly tracks up to 95% of customer purchases through its aggressively marketed loyalty program. It creates detailed profiles, guessing details like your income—often inaccurately—and sells them to over 50 companies. Every swipe of a loyalty card logs what you buy, when, and how often, building a profile that’s sold for profit. This precision marketing is big business, with data sales and related ventures making up over 35% of Kroger’s profits. Kroger claims transparency and denies unfair pricing, but critics, including Consumer Reports, demand stronger privacy laws to stop data misuse and hidden pricing tactics. Read more at https://therecord.media/kroger-using-loyalty-program-to-sell-customer-data.
This isn’t just a grocery store problem. Loyalty programs at retailers, airlines, hotels, and even car rental companies track your habits to push more sales and sell your data. Linking programs—like using airline miles for hotel stays—creates even richer profiles, combining your travel, shopping, and spending patterns. Wherever there’s a loyalty program, expect data collection.
You probably know the deal: if something’s free, you’re the product. It’s harder to see when you’re a paying customer. Loyalty programs feel like a reward for being a loyal shopper, but they’re often a tool to watch your habits and sell your info. And it’s not just grocery stores. Data collection is everywhere:
- Smart devices can spy on you for companies without clear permission.
- Cars might send your driving details to makers or insurance firms.
- Streaming services sell your watch history and hit you with targeted ads.
Being a loyal customer doesn’t shield you anymore. Your data is at risk. So, what can you do about it?
Steps to Guard Your Privacy
- Pay in cash when possible. Credit and debit card transactions share too much data.
- Ditch loyalty programs when you can. A few cents off isn’t worth your personal info.
- Check the fine print. Use Terms of Service; Didn’t Read at https://tosdr.org to see what companies really do with your data.
- Cut back sharing. Tweak settings on devices and services to limit tracking.
- Shop smarter. If a company’s privacy stinks, tell them. Better yet, take your money elsewhere.
Regulations are lagging, so it’s up to us to push back. Make smart choices. Show companies your data isn’t for sale.
Remember, we may not have anything to hide, but everything to protect.
