Feeds

Credit card companies plan to sell your purchase data to advertisers

Evil plot may end up buried in the T&Cs ...

3 Big data security analytics techniques

Visa Inc and Mastercard Inc are working on a system for delivering online behavioural adverts to consumers based on what they buy in shops, according to media reports.

The US-based credit card networks have developed "preliminary" plans to place shoppers into groups based on their in-store purchasing history and sell the information to marketing firms that would deliver online behavioural ads, according to report by the Wall Street Journal and another by CNET.

Publishers and advertising networks currently use cookies to track user behaviour on websites in order to target adverts to individuals based on that behaviour.

Mastercard's proposed system involves anonymously grouping consumers into "segments" based on what they have bought and selling the information on to advertisers, according to the CNET report.

Visa's plans involve dividing consumers into groups based on a number of segments, including purchasing history and location, before selling that data on, the CNET report said.

Visa and Mastercard did not respond to requests for a comment.

Iain Connor, advertising expert at Pinsent Masons, the law firm behind Out-Law.com, said that if the scheme was ever introduced in the UK credit card network, it would have had to obtain consumers’ explicit and informed consent in order to sell purchasing history data to marketers.

“Under EU and UK data protection laws, organisations must process personal data, such as consumers’ names and credit card details, fairly and lawfully and collect it for specified, explicit and legitimate purposes,” Connor said.

“If credit card companies want to share UK customers’ purchasing history details with advertisers they will have to explain that they will collect that data from them and explain how it will be used. This could be done via the company’s terms and conditions but the companies would have to obtain customers’ informed and explicit consent in order to sell that information on to third party advertisers," Connor said.

"Whether Visa and Mastercard’s existing data protection notice and terms and conditions would constitute ‘informed’ consent to that happening or whether new terms and conditions would need to be drawn in order to achieve that level of consent remains to be seen,” he said.

Copyright © 2011, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.