New York – Senator Warns Against Malls Tracking Consumers — Via Cellphones

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    New York – New York – Technology that uses shoppers’ personal cellphones to track their movements through a mall or store should not be used without their consent, U.S. Sen. Charles Schumer said Sunday.

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    Schumer said the British company that developed the so-called footpath technology should use an opt-in mechanism to give shoppers the choice whether they want their movements tracked.

    “A shopper’s personal cellphone should not be used by a third party as a tracking device by retailers who are seeking to determine holiday shopping patterns,” said Schumer, D-N.Y. He added, “It shouldn’t be up to the consumer to turn their cellphone off when they walk into the mall to ensure they aren’t being virtually tailed.”

    The technology was developed by Portsmouth, England-based Path Intelligence. It already has been used in shopping centers in Europe and Australia.

    It uses antennas to capture the identification number assigned to each phone and track its movement throughout the stores. The technology can yield data such as how many Victoria’s Secret shoppers also stop at Starbucks.

    Some U.S. malls and retailers have said they would start using the technology this holiday shopping season.

    Two malls said they would use the technology on Friday, but Schumer’s office says the malls halted the program after Schumer raised concerns.

    Path Intelligence has said the technology is not intended to spy on individual shoppers.

    But Schumer said that if the data were hacked it could compromise personal information on shoppers’ phones.

    In a letter to Path Intelligence CEO Sharon Biggar, Schumer urged the company to obtain the explicit consent of shoppers’ through an opt-in policy.

    He also called on Federal Trade Commission Chairman Jon Leibowitz to examine how this new technology fits in with existing consumer privacy regulations.

    Path Intelligence did not return an email seeking comment.


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