In summary, this article talks
about “reward” cards. We save money using these reward cards at the time of
purchase. The different stores that offer these receive money because they can
sell all the data collected when swiping the card. Different companies for
different reasons would buy this information. An example in the article is
about a car dealer maybe wanting this information because if you buy expensive
meats and wine, you might be more inclined to buy a more expensive car. Another
example in that stuck me is that insurance companies will buy this information.
They might buy the information to track what you eat, and if you buy a lot of
fatty foods or beer they might determine you as a high risk client and charge
you a higher premium compared to someone else; or deny you insurance period.
With the beer example, I don’t think one purchase will hurt you, it was
mentioned in the article if you buy it six times a week it could become a
problem.
I’m not exactly sure how I feel
about this? I have mixed feelings either way I go. What do you guys think?
I use rewards cards frequently, but only if it is saving me money. I didn't know the extent to which the information might impact me later on though. The example of insurance companies using the information to possibly deny coverage is a concern. I know that insurance companies are unlikely to use the same information to give me a better rate, if I only buy healthy items.
ReplyDeleteMy father has always told me that the cheese is only free in a mouse trap and that is very truth today. There are countless companies out there that try to give you stuff for free just for trying their product or giving them your email. The worst part is that millions fall in the trap without realizing that their personal information has a price that their opinion has a price and even their time has a price. Don’t sell yourself cheap and read the fine print.
ReplyDeleteWorking for Harris Teeter I am a frequent user of my rewards card. I feel data mining in this situation is a double bladed sword and in reality depends on the situation. It sounds like these companies are only practicing what Google has already been doing for a while, and not many people seem to have a problem with it in that situation. In regards to insurance I do not think that anyone has the right to deny you because of what they think will happen to your health in the future based on simple purchases. You should still be allowed the right of privacy in regards to health.
ReplyDeleteSo you don't think people who buy cigarettes should be charged a higher premium compared to those who do not smoke cigarettes? Just curious?
DeleteHeather Roberson
Interesting topic...This data mining gets into some interesting discussions. Embarrassed as I am, my husband is a smoker. Although, I would not want to pay a higher insurance premium I suppose it could be considered fair. However, if this is the case then I feel others who partake in self destructing behaviors should also be charged. For example, over eaters/fast food junkies, alcoholics, and the list goes on...But honestly I think it would be way too hard to track all of these habits of each individual person. Maybe instead they should require yearly check ups, that way if someone has a health issue it could be caught early on. Or maybe another solution to get around it all is to just pay cash, and do not use reward cards when making these purchases.
ReplyDelete