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Banks Find Way To Sell Consumers' Shopping Data
nonprofiteer writes "Banks plan to compete with Groupon and LivingSocial by targeting coupons and deals at credit card holders based on their shopping habits. They found a way to do it without violating financial privacy laws: 'They're "selling" shopping habits the same way Facebook "sells" personal data about its users: in-network. It's a clever privacy work-around. Just as Facebook allows advertisers to specifically target certain kinds of users based on their profile information (without actually providing that profile information to the advertisers), banks plan to allow advertisers to send deals and coupons to their customers based on what they've bought before. That way, no user data actually leaves the network — instead, deals just enter the network. Each time a customer cashes in on one of those deals, the bank gets a commission.'"
But the bank didn't sell you the list of names. The only way to get a list of names is if someone from the community you are targeting actually clicks-through on your ad and places an order. I'm sure there are other existing ad networks that would allow you to do the same.
You missed the point, but still have the right argument.
When you pay the bank, you don't get back a list of names at all. The bank would be sending out junk mail, SMS, or email based on your chosen demographics. It would be a 3rd party offer.
Most websites, companies, etc. allow you to specify that you don't want to receive it, but they also specify that affiliates and subsidiaries get access to to the data. The banks don't get that loophole in this case.
In your example, what you are really pointing out is that whatever percentage of customers click on the links, or even view the email with downloaded pictures, are revealing themselves and losing their privacy. In order for the bank to receive a commission it needs to admit that particular customer was indeed part of the chosen demographics.
It violates customer's privacy in spirit, in actuality the customer is mislead at best, and worst responsible for losing their own privacy through their own actions.
In other words, the customers are being tricked into confirming purchasing habits outside of the bank.
Very dirty and hopefully there will be an opt-out option for this voluntarily, or by law.
did this to me at the ATM today. I COULD NOT complete my ATM transaction without agreeing or denying a 2% cash back on my card if i went to a certain local italian chain (i refuse to give them more advertising). I went in and asked for a feedback form. No point in yelling at a teller for something that she has no control over. I will also be sending a formal typed and mailed letter of complaint to Chase headquarters.
Good-bye