The retailers emphasise that details of individual purchases are not visible in their loyalty card systems. They do gather personal information on individuals’ families, education and professions, if it is offered by the customer.
SOK, Kesko and Suomen Lähikaupa—the big three grocery retailers in Finland—say that individual purchases are not recorded, but the system does record the total spent and the location of stores visited. Chains then tailor their offers and discounts to the customer’s interests, family members and preferences.
“If we have information from a customer-owner* that they have children and if an offer comes along that could be especially interesting to families with children, then we can choose to contact those customer-owners,” says Minna Ojala, Concept Owner at S-Group.
EU reform on the way
Customer registers face big changes thanks to an upcoming EU reform of data protection laws. The aim is to standardise data laws across the EU, and will mean customers have to grant permission for their information to be used for targeted advertising.
“Generally people consent when they join, but are they told what kind of profiling is involved?” asks Reijo Aarnio, Finland’s data ombudsman. “Those running systems will now be forced to re-formulate and obtain informed consent.”
The new rules will also madate easier access for customers to the information companies hold. The intention is to agree the rules before next year’s European elections, before a transitional period that will last until at least 2016.
The S-Group recently used loyalty card data to trace customers who had purchased frozen vegetables tainted with the datura weed, by cross-referencing their loyalty card database with cash register records. They sought and received special permission from the Food Safety Authority to do so.
*The S Group is a co-operative, and often refers to co-op members as ‘customer-owners’.