Why Even Your Local Grocery Store Wants Your Digital Data

From Facebook and Instagram to Amazon Prime, most U.S. consumers have an online footprint that is growing daily.

Email addresses, phone numbers, shopping habits, birthdays and more are all being rolled into a monetizable data profile the companies and data brokers are using to better understand the needs and wants of consumers. Often this is without the knowledge or informed consent of the consumers.

A study from the University of Pennsylvania found 79% of Americans feel they have little control over what marketers can find out about them. This is what experts are calling "data fatigue," the idea that many consumers know their data is being collected but feel there is little they can do to stop it. The same study found that more than half of respondents did not know the full extent of what companies can do with their data. Now that data acquisition model is moving offline, to the aisles of your local grocery chain.

"Retailers today are doing just about everything they can to get as much information about you as possible, because that's a whole new revenue stream for them," said R.J. Cross, director of Public Interest Research Group's Don't Sell My Data campaign. "Almost every single company that you're shopping at today is in the business of selling your data, and you and your data are their latest product."

In 2021 the data broker market was valued at an estimated $319 billion. That value is expected to pass $545 billion by 2028. In the past retailers would buy data from data brokers to get a better idea of consumer trends. Now, they're cutting out the middleman, collecting consumer data directly through things such as loyalty programs, location tracking, app usage, and even digital receipts.

"My face is part of the data that's being captured, my behavior, and all of that gives off many more pieces of information about me, my age, my gender, my ethnicity," said Refive founder and CEO Mitul Jain. "And all of these pieces of information can then again be combined together with all these other little tidbits that I've been leaving behind from my shopping journey."

Watch the video above to learn how retailers are collecting and using consumer data and why the U.S. government is now stepping in.

Chapters:
0:00 Introduction
1:51 In touch with touchpoints
8:00 Third-party data to first-party data
15:06 What can we do about it?

Producer: Devan Burris
Editor: Evan Lee Miller
Supervising Producer: Jeff Morganteen
Animation: Jason Reginato, Andrea Schmitz, Christina Locopo
Additional Footage: Getty

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Why Even Your Local Grocery Store Wants Your Digital Data

[AwokenEntertainment]

it's crazy to think as prices are going up, there is even more money being made on the backend...

[happycook]

If businesses have collected all this info, why can't they identify shoplifters with tech?

[frankcoffey]

I worked for a junk mail company in the 80s and 90s and I used to wonder how much information about the people on the target list was "enough". That seems like a silly question today. There is no such thing as "enough".

[bumbut]

Same happens when we donate to organization. In no time we will be bumbarded with posts from so many non profit organizations asking for donation with a personal letter, so scary 😮

[techcafe]

A significant Data Monetization Tax ought to be imposed on these data harvesting companies: grocery store empires, social media platforms, media companies, marketers & advertisers and 'data brokers', all of them need to pay up, and contribute their fair share to the public good.

[michaelschikschneit]

The government won't act on behalf of the average citizenry. They pander to the rich, the corporations, and the lobbyists.

[adstix]

To reduce privacy breaches:
• use cash as much as possible
• avoid loyalty programs
• decline email receipts
• don't scan QR codes
• turn off wifi and location when shopping/dining outdoors
• clear browser cookies regularly
• be circumspect about downloading apps
• say your daily prayers of protection against the ubiquitous data thieves!

[lingth]

Reminds me of the movie Minority Report.. in the movie, the moment you step into a mall, a scanner scans ur eyes and identify you as who and address you by name and ask how is ur last purchase and then recommend you a product you may like.. it may be good for some ppl but can be embarrassing if the AI says Hi Mr Jack, How's the Victoria Secret underwear you bought last time.. did you enjoy the purchase?

[vickiroman]

Why does "we collect less data than our peers" not comfort me?

[vincebaker]

If a store can gather lots of info about you as soon as you enter a store and tracts you why can’t this data be used for smach & grab crime to identify and capture the robbers.

[NotACat]

They can keep track of all of this stuff about you, but can't keep people from stealing and have to lock up items. That doesn't add up to me.

[liberty-matrix]

When the service is free, you're the product.

[hitardo]

Another major issue, regarding data protection, is cars.
Modern cars produce, and send back to the OEM or service provider, a great deal of information.

Another issue is that your decision can have influence towards your family members.
Regarding, health information, because it often is genetic, a degree of probability can be drawn between family members.
Can you imagine being rejected on a insurance plan, because your cousin was signaled as a diabetic?

Data is power!
And we need to be aware that companies must not do whatever the want with it, especially because the main company driver is money - because they are obligated to do so, as for their shareholders interest (pun intended).

[ruthlessluder]

When I see an ad, say a pizza ad for Little Ceasars. If I want pizza, I will intentionally go to their competitor like Dominos. Likewise, if there's an ad for Nationwide, I will probably switch to State Farm. Enough people do this and it'll screw up the system.

[joebonaiuto]

I do not understand the data collection at stores and online.
I bought a pair of jeans at the store about a year ago, and got email ads about pants for weeks, why, I bought the pair of jeans I needed.
In a few year's I will look again for a new pair....
I always think about, years ago, I had to replace the control unit for the heating element or something like that in a dehydrator.
I did a quick search, found it on the company website for $43, and Amazon for $36, so I purchased it.
It took me a few minutes to replace, and I was done.
BUT, for the last 8 years, I have gotten emails every week about replacing my unit, buying a new one, maintenance...I have my email filters set to put any email with the word Excalibur directly into the spam
Seems like the whole thing is just a waste of everyone's time.

[MissAynneK]

Hmmm I'm now thinking about all the obviously unnecessary questions that I am forced to answer on these job applications that I've been filling out. It always irritated me that they want soooo much in just to merely *apply* to the job. I have a sneaking suspicion I know what these companies "need" this information for 😑

[brayan]

I’ve had store employees almost turn rude after I refused to use the stores loyalty program. They aggressively push it at Macy’s, it’s made the experience make me not want to to go there. If you use a VPN with the Macy’s app they won’t let you use the app at all.

[dannydaw]

I want congress to require opt in for data collection not opt out. The consumer would have leverage that way.

[jm]

I read this as “why grocery chains want your DNA” 😆

[krjourneyfan]

You can limit your participation in all this surveillance. Don’t accept cookies, for one. Don’t buy or shop for things you don’t need. Don’t use apps. Don’t ever allow them to use your location when you are online. Just say NO to everything and pay cash or use just one card for large purchases. Don’t be a slave to your phone.