Loveland's Independent News Source |
City To Begin Tracking You Via Your Mobile Phone |
reprinted from Federal Trade Commission... Privacy Considerations in Retail Tracking April 2015 Last week, the FTC announced a proposed settlement with Nomi Technologies, a retail tracking firm that monitors consumers’ movements through stores, for failing to adhere to their opt-out promises. Nomi's Listen Service tracks consumers by monitoring the location of their devices as they move about. The approach does not identify an individual by name but instead monitors unique wireless identifiers emitted by the smartphones, wearables, and other wireless accessories that consumers carry. The obscure nature of retail tracking technology has been somewhat controversial. On a number of occasions, retailers such as Nordstrom and Philz Coffee and cities, such as the City of London, have discontinued its use once their consumers were made aware of the practice and expressed privacy concerns. For context of consumer concern over this practice, a recent OpinionLab survey of 1,000 consumers indicated that, "8 out of 10 shoppers do not want stores to track their movements via smartphone" and "nearly half (43%) of shoppers are less likely to shop at a favorite retailer if the brand implements a tracking program." The privacy issues are further exacerbated by the fact that most consumers are not aware that their device information may be captured as they walk by a store or visit an airport. In light of the Commission’s proposed settlement with Nomi and the ongoing public debate, I thought it would be worthwhile to describe how different retail tracking technologies work, and in my opinion, the specific privacy trade-offs of each approach. My predecessor, Latanya Sweeney, has also blogged about this topic and the FTC held a seminar last spring, where I presented an overview on how some of this technology works. OVERVIEW Retail tracking generally works by monitoring individual's movements in or near locations of interest. The specific mechanisms can vary but often involve recording signals emanated by the individual or their devices as they move about. read entire article on FTC.GOV website |