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How Retailers Watch You

garzpacho writes, "With $30 billion lost to shoplifting and employee theft last year, retailers are turning to increasingly sophisticated electronic surveillance systems to fight theft. Some systems, like RFID tags, have been well-publicized by privacy advocates. Others are less well known: video surveillance systems are being tied to software that can recognize specific types of activity and identify individuals; and data-mining software is being used to analyze everything from shoppers' habits to irregular register activity." From the article: "Despite this revolution in retail tech, you won't find many stores bragging about their new security tools. No one wants to tip off shoplifters or advertise that they suspect their customers. That's why so much of the technology is hidden in the first place. But another reason stores don't talk much about surveillance is that they know it sparks concerns about privacy. Consumer groups and legislators have opposed the spread of RFID and video surveillance for just that reason."

21 of 257 comments (clear)

  1. You bag it, you buy it. by w33t · · Score: 4, Interesting

    Does anyone remember the commercial where the suspicious looking guy with the trenchcoat walks around a store, stuffing things into his pockets and makes for the door only to have an employee stop him saying, "sir, you dropped something," and handing the item to him?

    I wonder if indeed there will be stores in the future - perhaps entire malls - where to even enter you will need to have a wireless credit device.

    I don't like the retailers watching me, but perhaps I wouldn't feel so strange about the actual merchandise itself watching me.

    1. Re:You bag it, you buy it. by Anonymous Coward · · Score: 2, Interesting

      That's almost how it works at my local library. Put all your books on a RFID reading pad, swipe your card, confirm the list and you're out of there. I wish self checkout in all stores was like that. You could pay with cash if you wanted to remain anonymous.

  2. Cost Reduction Through Partial Implementation by eldavojohn · · Score: 4, Interesting
    Cost is one reason retailers are holding back: Tags run from 7 cents to 20 cents apiece, based on quantity; many are waiting for a 5 cents tag before investing in the technology. "The tags would have to be a lot cheaper... to put them on a bottle of water or pack of gum and add value rather than cost," explains Simon Langford, Wal-Mart's manager of RFID strategy.
    Well, that's an interesting point. But equally interesting would be investigating the possibility of putting tags on, say, maybe one in five or a fraction of your products. The idea being that you don't catch everyone who shoplifts your product but you do catch a fraction of them. Ideally, it only takes one infraction for someone to realize that it just isn't a good way strategy for obtaining items. I know this isn't how it is, many shoplifters continue with the infractions but it's better than nothing and might put the solution in your price range.
    --
    My work here is dung.
  3. Please Assume No Privacy by mrs+clear+plastic · · Score: 2, Interesting

    Lets please assume absolutely no privacy in any retail facility. Not even in the dressing rooms.

    I make most of my own clothes; I have not shopped new clothes for 10 years, however the few times that i have used a dressing room, I put on a pair of new, clean underwear prior to leaving home to go shopping. This way, I have no cause to care if I am watched in the dressing rooms.

    Also please don't assume you can see the cameras. I was given a demo of a high quality video camera that was smaller than amout 1/2 inch square and about 1/4 inch thick.

    Retail facilities are not synominous with privacy.

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    Cleara
  4. In Soviet America by DittoBox · · Score: 1, Interesting

    In Soviet Amerika, you are guilty before you're proven guilty!

    Seriously though: DRM, Activation, data-mining video surveillance, bills of attainder...it's getting worse.

    --
    Good. Cheap. Fast. Pick Two.
  5. Re:Proper enforcement is still key by the_greywolf · · Score: 2, Interesting

    Just this weekend, I walked into a Fred Meyer (with which I have prior experience with the oversensitive detectors going off...) with my backpack full of DVDs and burned media (most of which was over 3 years old) and set the alarm off. I got a passing glance from an employee who was nearby.

    Yeah, I made damn sure she saw me when I left, because I knew it would go off again.

    Figured out it was an old DVD that I bought in another state, at another chain, and never opened... 3 years ago.

    Damn Hastings and the EAS tags they never deactivate! (By policy! You can't walk into or out of any store after going to Hastings without some alarm going off.)

    --
    grey wolf
    LET FORTRAN DIE!
  6. Re:Privacy? In a Store? Which Amendment? by Ubergrendle · · Score: 5, Interesting

    A long time ago when I worked in retail (Computer City), we had store numbers that suggested anywhere from 50-100% of our net-profit each week disappeared due to 'shrinkage' -- that was the innocuous term used for shoplifting. Back then companies weren't so blatant as to openly suggest a large # of our 'customers' were liberating the products, but that was precisely what was happening. Pretty slick stuff to.. it was back when Win95 was release, people would use razor blades to open the box, slide out the cds, and leave the box behind. That's why now shrinkwrapped software comes in that ridiculous overpackaging -- the corragated cardbord box inside a box is to prevent quick theft.

    Stores are private property. Arrests and/or charges are still to be laid by legitimate police officers too, the most they can do is detain you. Your rights are not violated in any way. /I'm speaking as a Canadian, but our laws are roughly equivalent in this regard.

    I don't even mind RFIDs too much, but think they should be designed to be easily removable once you leave the store. This will take a few years to sort out I'm sure, but inventory tracking is a huge potential cost savings.

    --
    John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
  7. Re:Proper enforcement is still key by jcr · · Score: 2, Interesting

    they didn't even check my receipt before pulling it out and removing the tag.

    That's probably quite reasonable. How many shoplifters are brazen enough to go looking for a store employee like that?

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
  8. Safeway Basket Tracker by Bakafish · · Score: 3, Interesting

    The other day when I went to my local Safeway supermarket, I selected a plastic hand-basket and noticed something odd. It had a small black box, about 1" X 1/2" X 1/4" sloppily zip tied to the underside of the basket. I flipped the basket over, and read some company logo along the lines of ShopTracker or some such thing. I was pretty irked, so I tossed it behind the stack of baskets and selected an unencumbered model. They want to know where you visit, and where you linger. No warning on the basket at all...

  9. "Privacy issues" don't bother me by MikeRT · · Score: 5, Interesting

    I just checked my last grocery receipt and I have saved somewhere between $200 and $250 this year so far using that card. That's good money for me to be saving. That's about a month and a half of gas money for my commute to work! I could care less if I lose a little privacy for that kind of savings because I get something that I can see the benefits of.

    But what have I gotten out of **government** privacy invasions.

    Jack.

    Shit.

    Unless you are one of those soccer moms or country club dads who is so terrified of a few sabre-rattling third world nutjobs that you think that anything that gives you a 0.000000000001% great chance of not being hit by a terrorist is worth it.

    (Being a southern, I saw respond with a middle finger and rebel yell)

  10. Re:"Privacy issues" don't bother me by Marxist+Hacker+42 · · Score: 1, Interesting

    Absolutely true- and a point I'm trying to get across to my bosses at Oregon Department of Transportation in their bid to use GPS tech to charge road-mile taxes.

    Privacy issues are transactional cost situations. If you're getting more benefit than danger, then the risk will become acceptable. Savings cards give you a return right at the checkout. I say that if we want everybody to use GPS traking for taxes, then we need to give them an equal added benefit, say, adaptive NDGPS based cruise control. Keep the cars separated out with line of sight bluetooth communications of the GPS information of both vehicles, and you've given added value to the driver. Maybe even partner up between a nice mapping software and bluetooth burst communications from http://www.tripcheck.com/ and you can have up-to-the-minute traffic jam avoidance in the Portland area.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  11. Back in the old days... by MightyYar · · Score: 4, Interesting

    Remember those hand held beepers that home answering machines used to come with? I managed a 5 and dime back in the early 90's. The most advanced pieces of technology that we had were some two-way mirrors. Whenever I suspected someone of shoplifting (but couldn't prove it), I would stand next to the exit with one of those beepers and hit it when the person tried to leave. I had about even odds on the person either immediately professing their guilt, running, or otherwise doing something funny in response to the beeper. It was quite fun, actually.

    And now my social commentary: we were in a really, really wealthy resort town. The people who were stealing (or at least who we caught stealing) were almost always the teenage daughters of the rich guys that came to the town for vacations... what gives? Any psychologists reading? I mean, we also caught some teenage boys and even a nun, but most were teenage girls. Older men and women were better at stealing, and usually it took the form of price-sticker swapping. We didn't catch them as often. Usually they would get caught by handing a mis-priced product to the cashier that had just spent an hour pricing the same item :)

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  12. What are their rights? by aggles · · Score: 2, Interesting

    So what if you walk out of the store, and the alarm goes off, you know you aren't guilty, and just continue walking. What can the store do except ask you to stop and hope you do? Are there any laws against disobeying the order of a private security guard?

    1. Re:What are their rights? by Anonymous Coward · · Score: 1, Interesting
      Are there any laws against disobeying the order of a private security guard?

      Not that I know of, but some relevant florida laws are:

      A law enforcement officer, a merchant, a farmer, or a transit agency's employee or agent, who has probable cause to believe that a retail theft, farm theft, a transit fare evasion, or trespass, or unlawful use or attempted use of any antishoplifting or inventory control device countermeasure, has been committed by a person and, in the case of retail or farm theft, that the property can be recovered by taking the offender into custody may, for the purpose of attempting to effect such recovery or for prosecution, take the offender into custody and detain the offender in a reasonable manner for a reasonable length of time. In the case of a farmer, taking into custody shall be effectuated only on property owned or leased by the farmer. In the event the merchant, merchant's employee, farmer, or a transit agency's employee or agent takes the person into custody, a law enforcement officer shall be called to the scene immediately after the person has been taken into custody.
      The activation of an antishoplifting or inventory control device as a result of a person exiting an establishment or a protected area within an establishment shall constitute reasonable cause for the detention of the person so exiting by the owner or operator of the establishment or by an agent or employee of the owner or operator, provided sufficient notice has been posted to advise the patrons that such a device is being utilized. Each such detention shall be made only in a reasonable manner and only for a reasonable period of time sufficient for any inquiry into the circumstances surrounding the activation of the device.
    2. Re:What are their rights? by Surt · · Score: 4, Interesting

      No consequences to you unless he places you under arrest. And then he and the store are both fucked in court when you bring false arrest charges.

      http://en.wikipedia.org/wiki/Security_guard

      Of particular interest:

      Security personnel are not police officers but are often confused with them due to similar uniforms and behaviors, especially on private property. Security personnel derive their powers not from the state, as public police officers do, but from a contractual arrangement that give them 'Agent of the Owner' powers. This includes a nearly unlimited power to question with the freedom of an absence of probable cause requirements that frequently dog public law enforcement officers. Additionally, as legal precedents have further restrained the traditional police officers' power of "officer discretion" regarding arrests in the field, requiring a police officer to arrest minor lawbreakers, private security personnel still enjoy such powers of discretion largely due to their private citizen status. Since the laws regarding the limitations of powers generally have to do with public law enforcement, private security is relatively free to utilize non-traditional means to protect and serve their clients' interests. This does not come without checks, however, as private security personnel do not enjoy the benefit of civil protection, as public law enforcement officers do, and can be sued directly for false arrests and illegal actions if they commit such acts. ...

      Except in these special cases, a security guard who misrepresents himself as a police officer is committing a crime. However, security personnel by their very nature often work in cooperation with police officials. Police are called in when a situation warrants a higher degree of authority to act upon reported observations of the security personnel that could not be directly acted upon safely by the security personnel.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  13. And motivation is the key to enforcement by Harmonious+Botch · · Score: 4, Interesting

    I own a store ( a lot smaller than Best Buy ). I try to encourage my employees to think like the boss; to have the same goals and the same motivations. To accomplish this, one of their perks is to be able to consign merchandise here. When it sells, they get 80%, the house keeps 20%.

    So they have an incentive to prevent shoplifting, for it could be their stuff going out the door. THe most extreme case was when one of my employees ran after an obvious shoplifter, and tacked him across the street. He had him pinned down on the sidewalk, stolen merchandise spilled in plain view. He yelled for the employee in the place across the street to please call the cops. The other employee refused because he 'didn't want to get involved.' After all, why should he? He was paid by the hour and got the same amount whether he tried or not.

  14. re: Computer City by King_TJ · · Score: 2, Interesting

    I can tell you for a fact that theft at the Computer City stores we used to have here in St. Louis, MO (USA) was mostly by employees. I used to run a popular computer BBS back in those days, and one of their employees offered to barter hardware for download credits with me one time. I visited his apartment, willing to discuss the idea - and found a large walk-in closet stuffed full of brand new CD-ROM drives, RAM, hard drives, and other goodies. He worked at Computer City and admitted that a group of them were collecting up as much stuff as they could from the store, in order to get a "better salary out of the cheap bastards".

    Another time, I was interested in buying an expansion board to do general MIDI with ROM samples on a Soundblaster AWE type csound card. Computer City supposedly had 2 in stock at the store closest to me, but when I got there, they were unable to locate anything except empty boxes. Shortly afterwards, a guy I knew told me that he had "connections" who could get me one of those cards cheap, as long as I didn't mind it was "hot". Funny... one of his buddies worked at Computer City.

    That place seemed to generate a lot of ill will with people ... One store by me was Arab-owned and operated, for example, and many people felt it should have been run by an American instead. Another just had constantly poor customer service. You could walk around for 30 minutes trying to get help and nobody would seem to be around. I think that's really why they experienced such high loss-rates. Employees were all out to screw the stores over, and many who shopped there didn't feel guilty buying property known to be stolen from the place either.

  15. Re:"Privacy issues" don't bother me by Don'tTreadOnMe · · Score: 2, Interesting
    I know this: I shopped at Martins in West by God Virginia (USA), and shopped there regularly before they introduced their "Shopper Card". I didn't get one, at first, thinking, "why do I need this?"

    Then I noticed that my normal shopping bill went up by a few dollars, in the space of a week. I started looking around, and sure enough, items that I regularly bought for $4.99, or whatever, now had "$4.99" in some bold color, and underneath in very small print, said, "$5.99 without shopper card".

    So I got a card, and then had to replace it a year later when it wouldn't read anymore. "Just put your phone number in the number pad..."

    "Ummm, I had a different number then, and don't remember what it was."

    Now I just use my work number, and have discovered that most of my co-workers do, too, so we don't even have to lie on the stupid forms anymore: Someone from work has already signed up at every store in the area.

    And what will they do when I move and someone else gets the phone number, if that is the "unique identifier" that they are using?

  16. RFID "horror" story by aelfwyne · · Score: 3, Interesting

    My worst problem with this is, as others, when the RFID tags are not deactivated. In my case, it was a pair of shoes someone had bought me for a gift. Problem was, the tag wasn't deactivated. Additionally, the tag was BUILT INTO the shoes! Every time I entered and left a store wearing the shoes, it would set off the alarms. I had more than one overzealous doordude try to stop me. Eventually I got to where I would warn them before I even stepped through and hold my hands out so they could see I wasn't carrying anything. One refused to listen and tried to detain me - I told him to get his *@*## hands off me before I had to defend myself against unlawful detainment. He was furious, but I had already explained to him the situation, and he was too stupid to comprehend that a tag might be on something I OWN and not have been deactivated!

    Finally, when the shoes were completely worn out, I cut them up and found the tag. It was deep inside between two layers of cloth - it had to have been put in there at the factory.

    --
    -- If it ain't broke - overclock it more.
    1. Re:RFID "horror" story by Sloppy · · Score: 2, Interesting
      Suppose you buy a shirt at Walmart and take it home and wear it, and at some point go back to Walmart wearing that shirt. How can you prove you paid for it previously? Suppose it's a handbag or wallet. Prove you didn't just steal it from the store.

      Why bother trying to prove this? You don't need to prove anything. Let them worry about proving your guilt. And if somebody sells clothing that contains chips that set off alarms, then setting off alarms isn't proof of theft -- hell, it isn't even circumstancial evidence of theft anymore. It's just noise and makes theft detection harder. This isn't your problem (unless you own Wal-Mart stock) so let someone else have this headache. Don't worry; be happy. :-)

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      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  17. Mostly a Strawman by mdm42 · · Score: 4, Interesting

    For supermarket chains, the serious losses are not from shoplifting. The really serious theft is the entire truckloads of goods that never make it in the backdoor of the store, but that the chain ends-up paying for. These operations are usually operated by insiders, often reaching up to quite senior management levels, as full-time businesses-within-the-business.

    None of this tracking nonsense is going to make the slightest dent in that.

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    New mod option wanted: -1 DrunkenRambling