Stores must require consent before tracking customers
November 25, 2013
A recent investigation has revealed that a number of stores, including Nordstrom, have been tracking customers’ Wifi signals to keep track of their customers and their shopping habits. Some people believe that this is a natural progression in the growth of technology and that the act and process of tracking customers’ store use should be used in every store. But without customer consent, tracking them through their Wifi signals is immoral and a direct invasion of privacy.
The accused, Nordstrom, at one point had 17 Nordstrom stores testing the program from Sept. 2012 through May 2013. The program, which was made by the company Euclid, was used for tracking the in-store movements of its customers through the Wifi signals from their smartphones through sensors that were installed in the stores.
Danielle Nelson (’15) was shocked to find that her favorite stores were tracking her without her personal consent. “I shop at Nordstrom Rack all the time and it kind of freaks me out to think that they are following my store usage through my phone. I’m definitely going to leave my phone in my car the next time I go shopping,” said Nelson.
The Euclid website states, “no personally identifiable information is collected or used. Real-world identity cannot be determined by Euclid.” Some customers believe this wholeheartedly, while others take it with a grain of salt, still wary of the information being obtained by the retailers without their personal consent.
The information found by tracking customers’ Wifi signals is no different than the information being obtained by surveys and online shopping, and it has proven to be beneficial to the stores that use it. The stores are able to learn where most customers shop in the store, which promotions were successful, how many people left without buying anything, etc. Although the information is useful to the company, it was obtained without customer consent.
Although the uses for the information that was found were purely for the well-being of the customers and to create a better shopping experience, the way in which the information was being gathered caused quite a commotion in the shopping world. Whether the retailers believe this process to be an invasion of privacy or not is relevant. If the customers feel that their privacy is being violated, then the retailers must either listen and change or risk losing customers and sales.