[alt.privacy] Safeway Stores to Accept Charge Cards

langz@asylum.SF.CA.US (Lang Zerner) (04/05/91)

According to the San Francisco Chronicle, p. C1, April 4, 1991, the
national Safeway supermarket chain will soon begin accepting Visa and
MasterCard for purchases of groceries and other items.  The banks that
serve Safeway will get a special rate on purchases (1 percent) to
encourage them to pass the discount on to Safeway.  Customers will also
have the option to use debit cards such as bank ATM cards (Lucky
supermarkets in California have offered this convenience for some time).

The article goes on for about 12 column-inches, starting on page 1 of
the Business section and continuing on page 4.  Most of the article
explains why the new network will be good for Safeway (it is the
business section :-).  The following sentence appears on the
continuation page: "Suzanne McGrath, a supermarket-industry analyst at
Piper Jaffrey in Portland [Oregon], suggested that banks may be
subsidizing the cost of the new equipment in order to gain information
on customer purchases that they could then sell to consumer goods
companies."

That's it.  There is no further discussion of the privacy infringement
entailed by making personal information about an individual's spending
habits available to third parties.

One way to let Safeway and its customers attain almost all of the
advantages of the new system without endangering customer privacy is for
Safeway to bill only for the total purchase amount, and not maintain
records of the purchase details any longer than necessary to conduct the
business of selling groceries.  If this is impossible for technical
reasons, I would at least request their written assurance that they will
not release the detail information to third parties.

I also plan to write the Chronicle to voice my opinion that they were
remiss in providing no discussion of the privacy issues.  I will request
that the Chronicle report on the privacy issues raised by the Safeway
billing system and other computerized personal information databases
(such as the new CA driving licenses).

To write the Chronicle:

Letters to the Editor
San Francisco Chronicle
901 Mission Street
San Francisco, CA  94103

Refer the Editor to "Safeway Stores to Accept Charge Cards," by Staff
Writer Jamie Beckett, on page C1 of the April 4, 1991 morning edition.

To write Safeway:

Deborah Lambert
Public Relations Manager
Safeway, Incorporated
47400 Kato Road
Fremont, CA  94538

If you are a Safeway customer, be sure to mention that fact in your
letter.  You may also be able to reach Ms. Lambert by telephone at
498-2011, but remember: you can't send a copy of a verbal response to
the press if it is newsworthy.

Please copy and post this message wherever it is appropriate.  Customer
goodwill is worth real money to Safeway; ket them know they'll be losing
some if they make records of your personal buying habits available to
third parties.

Be seeing you...
-- 
langz@asylum.sf.ca.us   "Karma means `getting caught.'  The secret to
not creating karma is getting even without getting caught." --Rodent Kapoor

schweige@aldebaran.cs.nps.navy.mil (Jeffrey M. Schweiger) (04/06/91)

In article <13810@asylum.SF.CA.US> langz@asylum.SF.CA.US (Lang Zerner) writes:
>According to the San Francisco Chronicle, p. C1, April 4, 1991, the
>national Safeway supermarket chain will soon begin accepting Visa and
>MasterCard for purchases of groceries and other items.  The banks that
>serve Safeway will get a special rate on purchases (1 percent) to
>encourage them to pass the discount on to Safeway.  Customers will also
>have the option to use debit cards such as bank ATM cards (Lucky
>supermarkets in California have offered this convenience for some time).
...
>One way to let Safeway and its customers attain almost all of the
>advantages of the new system without endangering customer privacy is for
>Safeway to bill only for the total purchase amount, and not maintain
>records of the purchase details any longer than necessary to conduct the
>business of selling groceries.  If this is impossible for technical
>reasons, I would at least request their written assurance that they will
>not release the detail information to third parties.

This system has been in use at several Safeway's for quite some time.  The
only information recorded on the charge slip is the total purchase amount.  My
charge receipts (I've used the system) are separate from the normal cash
register receipt and do not include extra details.  In this regard they have
no more information than any other credit card charge receipt (and in some
cases, less).  The only marketing information that the banks are getting from
the charge receipts are that the card was used at a Safeway.  It should be
noted that the charge card machine is not linked to the cash register.  The
cashier has to manually key in the amount of sale to the charge card terminal.

I do not see this Safeway endeavor as making any new inroads into privacy
issues.

Jeff Schweiger


-- 
*******************************************************************************
Jeff Schweiger	      Standard Disclaimer   	CompuServe:  74236,1645
Internet (Milnet):				schweige@taurus.cs.nps.navy.mil
*******************************************************************************

petersja@debussy.cs.colostate.edu (james peterson) (04/06/91)

In article <13810@asylum.SF.CA.US> langz@asylum.SF.CA.US (Lang Zerner) writes:
>According to the San Francisco Chronicle, p. C1, April 4, 1991, the
>national Safeway supermarket chain will soon begin accepting Visa and
>MasterCard for purchases of groceries and other items.  
>  [stuff deleted]
>The following sentence appears on the
>continuation page: "Suzanne McGrath, a supermarket-industry analyst at
>Piper Jaffrey in Portland [Oregon], suggested that banks may be
>subsidizing the cost of the new equipment in order to gain information
>on customer purchases that they could then sell to consumer goods
>companies."
>


Interesting.  Safeway is one store I will not shop at since they refused
to issue me a check cashing card without knowing my Social Security number.
This even after arguing four rungs up their corporate ladder.  They
simply refused.  So I simply refuse to shop there.

All part of the same pattern?   If they took a debit card and only
recorded the total, my privacy would have been enhanced over providing
them with my SS#...




-- 
james lee peterson				petersja@CS.ColoState.edu
dept. of computer science                       
colorado state university		"Some ignorance is invincible."
ft. collins, colorado  (voice:303/491-7137; fax:303/491-2293)

cyberoid@milton.u.washington.edu (Robert Jacobson) (04/06/91)

Charge cards aren't associated with lists of purchases?  That seems an
oversight.

Bob Jacobson
-- 

wouk@alumni.colorado.edu (Arthur Wouk) (04/06/91)

In article <13810@asylum.SF.CA.US> langz@asylum.SF.CA.US (Lang Zerner) writes:
>According to the San Francisco Chronicle, p. C1, April 4, 1991, the
>national Safeway supermarket chain will soon begin accepting Visa and
>MasterCard for purchases of groceries and other items.  The banks that
...
>business section :-).  The following sentence appears on the
>continuation page: "Suzanne McGrath, a supermarket-industry analyst at
>Piper Jaffrey in Portland [Oregon], suggested that banks may be
>subsidizing the cost of the new equipment in order to gain information
>on customer purchases that they could then sell to consumer goods
>companies."
>
>That's it.  There is no further discussion of the privacy infringement
>entailed by making personal information about an individual's spending
>habits available to third parties.
>

welcome to the twentieth century. i moved to colorado last year and
found that safeway has an organized data collection system going
called 'preferred customers'. you get a machine readable card which
you have run through the bar code reader for each shopping trip. they
collect information about what you buy, in exchange for which you get
freebies proportional to the amount you spend per month. (i usually
donate the freebies to the homeless here in boulder since we rarely
use the stuff.)

the only improvement over the present inventory control systems which
are widespread on bar-code reading systems is the ability to correlate
purchases over a period of time, thus correlating who buys item a with
who buys item b.  the information cannot be used about me, nor would
it pay safeway to sell the information to anyone else in any way that
would impact me unfavorably. i do not see food habits as forming a body
of knowledge which would inconvenience me if made available to other
food sellers not in competition with safeway. i am more annoyed with
the proliferation of mail-order operations for other goods.

if safeway goes over to vis nationwide, this may be because the
experiment here in colorado is too expensive, and emplying the banks
to produce the same information may be cheaper. also, it is easy to
avoid the whole system by NOT using visa. the world managed to sell
goods before visa, and no one is forced to use visa.
-- 
arthur wouk 
internet: wouk@cs.colorado.edu

rcd@ico.isc.com (Dick Dunn) (04/06/91)

langz@asylum.SF.CA.US (Lang Zerner) writes:
> According to the San Francisco Chronicle, p. C1, April 4, 1991, the
> national Safeway supermarket chain will soon begin accepting Visa and
> MasterCard for purchases of groceries and other items...
...
> ..."Suzanne McGrath, a supermarket-industry analyst at
> Piper Jaffrey in Portland [Oregon], suggested that banks may be
> subsidizing the cost of the new equipment in order to gain information
> on customer purchases...

Safeway stores here (Boulder, CO) have a critter called a "Preferred
Customer Card".  They use it to gather info about your purchases and
profile you, period.  It's not a future thing, nor a maybe thing.

The idea is that you get one of these cards; you show it every time you
shop (they scan a bar code from it); the items you purchase are recorded
in association with your card ID.  At the end of the month, you get a bunch
of coupons good for discounts or freebies of things you buy regularly.  If
that doesn't make it clear enough that they're gathering profiles on
people, you can read it on the application for the card--there's a state-
ment which says that by applying for the card, you give them permission to
sell the information they gather about you!

I do shop at Safeway.  But I don't have an "Observed Customer Card":-)
And I pay cash.
-- 
Dick Dunn     rcd@ico.isc.com -or- ico!rcd       Boulder, CO   (303)449-2870
   ...Lately it occurs to me what a long, strange trip it's been.

spm2d@uvacs.cs.Virginia.EDU (Steven P. Miale) (04/07/91)

In article <14015@ccncsu.ColoState.EDU> petersja@debussy.cs.colostate.edu (james peterson) writes:
>In article <13810@asylum.SF.CA.US> langz@asylum.SF.CA.US (Lang Zerner) writes:
>
>Interesting.  Safeway is one store I will not shop at since they refused
>to issue me a check cashing card without knowing my Social Security number.
>This even after arguing four rungs up their corporate ladder.  They
>simply refused.  So I simply refuse to shop there.

Do what I do. I go to the bank next door and withdraw money, and then shop
at safeway. They don't know who I am.
I never use checks at a grocery store. Of course, it is practical for me,
because I rarely spend over $20.
I personally think the ability to use ATM cards at a grocery store is
great, and should be done IF privacy can be protected. It is extremely
simple for a computer to keep track of what is bought and to pass that on
to a company which collects marketing data.
The solution to the dilemna of our public society is to get the government
off the back of the people and get it monitoring the corporations instead.
I also believe we should be able to get our credit reports for free instead
of having to pay $X a month for them, but that is another topic.
 
>
>All part of the same pattern?   If they took a debit card and only
>recorded the total, my privacy would have been enhanced over providing
>them with my SS#...
>
The University of Virginia uses the SS# as the student ID. I don't like it.
I am going to contact some people to get my ID# changed.

And speaking of requiring SS#, I worked at a grocery store called Farm
Fresh last summer, and they required the SS# on EVERY check. I was a cashier,
and had to do it.

>
>-- 
>james lee peterson				petersja@CS.ColoState.edu
>dept. of computer science                       
>colorado state university		"Some ignorance is invincible."
>ft. collins, colorado  (voice:303/491-7137; fax:303/491-2293)

Steven Miale
University of Virginia
 

gl8f@astsun.astro.Virginia.EDU (Greg Lindahl) (04/07/91)

In article <1991Apr6.191817.23675@murdoch.acc.Virginia.EDU> spm2d@uvacs.cs.Virginia.EDU (Steven P. Miale) writes:

>The University of Virginia uses the SS# as the student ID. I don't like it.
>I am going to contact some people to get my ID# changed.

You can't, really. If you complain they will give you an ID card with
a different ID number on it, but your SSN will still be distributed to
the library, the hospital, et cetera. If you are only an employee they
will refuse to even give you another number.

They refuse to consider your SSN private information. I wish I knew 
a law I could quote at them, or that DP auditors would grade down
institutions that fail to protect private information.

Can anyone give legal references? Please?

jgd@Dixie.Com (John G. DeArmond) (04/07/91)

wouk@alumni.colorado.edu (Arthur Wouk) writes:

>the only improvement over the present inventory control systems which
>are widespread on bar-code reading systems is the ability to correlate
>purchases over a period of time, thus correlating who buys item a with
>who buys item b.  the information cannot be used about me, nor would
>it pay safeway to sell the information to anyone else in any way that
>would impact me unfavorably. i do not see food habits as forming a body
>of knowledge which would inconvenience me if made available to other
>food sellers not in competition with safeway. i am more annoyed with
>the proliferation of mail-order operations for other goods.

This is not true.  Please read my article titled "POS data collection" in
this group for more details.  The data collected about your buying
habits may end up being the most profitable item the food stores
sell.  Indeed, industry insiders estimate that life style database
sale profits may soon exceed the profit made on the food products themselves!
The stores are being paid 3 times.  Once in the form of updated POS systems
provided by the data aggregators, twice by getting fees to collect the
data and three times by being paid for the actual data collected.

>if safeway goes over to visa nationwide, this may be because the
>experiment here in colorado is too expensive, and emplying the banks
>to produce the same information may be cheaper. also, it is easy to
>avoid the whole system by NOT using visa. the world managed to sell
>goods before visa, and no one is forced to use visa.

Safeway would go over to Visa because Visa wants in on this gravy train
and will pay the grocers royally to gain access to the life style
data.  From the grocers' point of view, they win twice because they
not only get to advertise that the plastic society has come to the
grocery store, they also get the highest payment for the collected data.


Like I noted in my previous article, it is vital that anyone at all 
concerned with personal privacy and/or the ability to lead a non-normal
(as defined by insurance companies and the government) lives should
completely boycott any store that employs any kind of life style data
collection/ customer tracking system.  The trinkets you receive now
in return for your patronage will later make the sale of Manhattan Island
look like a good deal for the Indians.

John

-- 
John De Armond, WD4OQC        | "Purveyors of speed to the Trade"  (tm)
Rapid Deployment System, Inc. |  Home of the Nidgets (tm)
Marietta, Ga                  | 
jgd@dixie.com                 |"Politically InCorrect.. And damn proud of it  

sean@dranet.dra.com (04/08/91)

In article <2050@aldebaran.cs.nps.navy.mil>, schweige@aldebaran.cs.nps.navy.mil (Jeffrey M. Schweiger) writes:
> This system has been in use at several Safeway's for quite some time.  The
> only information recorded on the charge slip is the total purchase amount.

Also recorded is the date/time and location (which box this is).

Depending on the transaction rates, any decently synched timestamp will
provide enough information for post-processing and matching.  This information
was originally gathered to track fraud, but it can be used for other matching
purposes just as easily.

-- 
Sean Donelan, Data Research Associates, Inc, St. Louis, MO 63132-1806
Domain: sean@dranet.dra.com, Voice: (Work) +1 314-432-1100

petersja@debussy.cs.colostate.edu (james peterson) (04/08/91)

In article <1991Apr6.000027.462@colorado.edu> wouk@alumni.colorado.edu (Arthur Wouk) writes:

>i do not see food habits as forming a body
>of knowledge which would inconvenience me if made available to other
>food sellers not in competition with safeway.

That is, until your insurance company raises your health insurance and
life insurance rates (or revokes your coverage) for "risky and
self-destructive eating habits" because you eat too much bacon and cheese....



>
>arthur wouk 
>internet: wouk@cs.colorado.edu



-- 
james lee peterson				petersja@CS.ColoState.edu
dept. of computer science                       
colorado state university		"Some ignorance is invincible."
ft. collins, colorado  (voice:303/491-7137; fax:303/491-2293)

scott@bbxsda.UUCP (Scott Amspoker) (04/09/91)

In article <14073@ccncsu.ColoState.EDU> petersja@debussy.cs.colostate.edu (james peterson) writes:
>>i do not see food habits as forming a body
>>of knowledge which would inconvenience me if made available to other
>>food sellers not in competition with safeway.
>
>That is, until your insurance company raises your health insurance and
>life insurance rates (or revokes your coverage) for "risky and
>self-destructive eating habits" because you eat too much bacon and cheese....

Yes.  How do you explain to the insurance company:

     The cigarettes a visiting relative asked you to pick up while you
     were at the store?

     The beer you bought for your barbeque guests (even though you
     never touch the stuff)?

     The condoms? (possible promicuity)

     Extra gasoline? (hey, you said you only commute 10 miles a day)

     "Hang Gliders Quarterly" magazine?  (dangerous lifestyle)

-- 
Scott Amspoker                       | Touch the peripheral convex of every
Basis International, Albuquerque, NM | kind, then various kinds of blaming
(505) 345-5232                       | sound can be sent forth.
unmvax.cs.unm.edu!bbx!bbxsda!scott   |    - Instructions for a little box that
                                     |      blurts out obscenities.