If this is your first visit to this page, you may want to catch up by skimming the supermarket news archive at left. (Note: For supermarket industry news that's updated daily go to Yahoo Supermarket News )

CASPIAN founder and ACLU file First Amendment lawsuit against EPC conference venue

ACLU Press release - September 12, 2003
ACLU sues Chicago convention center (Washington Times)

Lawmakers scrutinize RFID; CASPIAN founder testifies at state hearing

On August 18, CASPIAN Founder and Director Katherine Albrecht testified on RFID to California state lawmakers.

Lawmakers to probe RFID technology (CNET news)
California scrutinizes RFID privacy (InternetNews.com)
Privacy probe on RFID tags (Silicon.com)

"Homeland Security" may be used as excuse for RFID

"Facing increasing resistance and concerns about privacy, the United States' largest food companies and retailers will try to win consumer approval for radio identification devices by portraying the technology as an essential tool for keeping the nation's food supply safe from terrorists.

The companies are banding together and through an industry association are lobbying to have the Department of Homeland Security designate radio frequency identification, or RFID, as an antiterrorism technology.In addition, they are asking members of Congress and other influential figures to portray RFID in a favorable light."

Full story: "Claim: RFID will stop terrorists" (Wired)

We need labeling. CASPIAN proposes "RFID Right to Know Act of 2003"
Law would help consumers identify products equipped with tracking chips

CBS Evening News features CASPIAN's John Vanderlippe
Over 6 million viewers learn the truth: Grocery cards are a scam

Target Stores to get "loyalty" card
Chain plans to introduce purchase surveillance cards later this year

Target Corp., the store selling DVD's with hidden RFID devices inside to unsuspecting consumers, will introduce a loyalty program for its smart cards in the next few months. Consumers will insert their cards into kiosks at the entrance to receive discounts and other promotions. Michael V. Howe, president and chief executive officer of Catuity Inc., said, "The program will check the customers’ past behavior and offer them something relevant."

Target is an Auto-ID Center sponsor and one of the privacy bad guys, so the last thing we want is for them to "check" our "past behavior." Hey, Target, instead of playing Big Brother, how about offering us something really relevant, like an RFID-free shopping experience?

Click here for the full story from Kiosk Marketplace

Ohio grocer "segments" shoppers with personalized prices
Shopper card data being put to discriminatory uses, just as we predicted

Dorothy Lane Market, an upscale grocery chain in Ohio, has implemented Customer Specific Pricing (CSP), a practice where different prices are charged to each group of customers. Now the majority of all discounts available in the store only go to the identified top 30% of Dorothy Lane shoppers. 

After starting  their card program, Dorothy Lane eliminated newspaper advertising and switched to an "in-store ad-sheet".  Once they were able to  analyze their program data to determine who their most profitable customers were they started mailing them exclusive offers while at the same time reducing the size of the discounts on their ad-sheet making them only marginally better than the regular prices.

The store even segments the top 30% into three groups, with discounts given according the customers' stature within that elite grouping.

Of course none of this would be possible without the rich databases stores are compiling with their "loyalty" programs.  While this is the most complete example of CSP we have found to date, there is evidence that the practice will soon be widespread.  For example, this quote from an NCR division president explains how wireless shelf tags will soon work:

"A customer would be able to point a key fob at an electronic label and it would flash back a specific price based on that customer's value to the store."

It's important to keep in mind that most supermarket discounts are not given by the store; they are given by the manufacturer.  Not only do the stores profit by denying sale prices to the "bottom tier" of customers, they are profiting off the manufacturers as well by keeping the difference.

For more information on pricing issues see our "pricing overview" page. For more information on Dorothy Lane Markets' CSP practices, see Brian Woolfs new book Loyalty Marketing: The Second Act. 

Personal data sold despite privacy policies
Hooked on Phonics and GNC both guilty of sharing customer data

Consumer questions go unanswered as RFID proponents woo CEO's
CASPIAN says, "They're ducking the consumer issue"

CASPIAN reports that the MIT Auto-ID Center met with world CEOs on July 16 at a closed meeting in a posh Boston Hotel. "They locked the doors to the press and consumers, afraid we'd grill them about the three questions they still haven't answered," says CASPIAN Founder and Director Katherine Albrecht.

CASPIAN has yet to receive answers to the three questions it posed to the Auto-ID Center's Board of Overseers after finding documents detailing plans to sell RFID-tagged products at stores like Wal-Mart and Target:

"We believe that consumers have a right to know when they are interacting with technology that could compromise their privacy and/or health," says Albrecht. "We hope that one outcome of their closed gathering will be to formulate a complete and relevant response to these questions." She adds, "If necessary, consumers can begin to address each organization individually."

Albrecht said an initial response by the Center's Director Kevin Ashton dated July 14 was a “a non-answer” that did not address the questions.

Contrary to the Auto-ID Center's recent statements that all of their activities are public, the agenda for today's meeting at the Fairmont Copley Hotel in Boston was not available to the press or the public. CASPIAN obtained inside information about the Summit, however, including an agenda.

"Particularly noteworthy about this agenda is that less than 4 percent of the meeting is devoted to 'addressing consumer privacy,' " says Albrecht. "And no mention is made of security, despite recent document security issues at the Auto-ID Center's web site.

CONSUMER VICTORY: Wal-Mart "unexpectedly" cancels smart shelf trial
The real story: Wal-Mart was inundated with angry calls and letters

Headline CNET Article: "Wal-Mart Cancels 'Smart' Shelf Trial"
Boston Globe: "Gillette, Wal-Mart drop plan for radio ID chips: Plan had raised concerns over privacy of consumers"
AP Story (running today in dozens of papers)
Slashdotted (again!)
FMI (Food Marketing Institute) Daily News; Morning News Beat

Things are looking really bad for the RFID industry, as one piece of bad news piles onto another.
The latest: Wal-Mart scraps plans to track RFID-laced Gillette products at its Brockton, MA store.

RFID stocks dropped on the news:

The boys from Dow Jones look at Wal-Mart’s decision to back off from ‘smart shelf’ technology and its effect on the industry:

"A pothole just appeared in the road to wireless inventory tracking....[the fact that] the worlds top retailer, Wal-Mart  decided not to go through with an RFID inventory test using Gillette products...could be a big blow for some of the RFID companies and the technology as a whole, [Dow Jones’ analyst Bob] O’Brien said."  (Source: MSN Money, Stocks in the News, 7/9/03)

The law says that companies must spy on you
USA Patriot Act turns your bank, jeweler, telco into private snitches

"Section after section of the USA Patriot Act imposes new obligations on businesses to produce the personal records of their customers, or to spy and snitch on their customers as a condition of operating. Million-dollar fines and criminal liability are punishment for noncompliance."

Click here for the full story from St. Petersburg Times

Physical location of online credit card users to be tracked
Fraud prevention measure will review purchaser's whereabouts

VeriSign is introducing a service for merchants that will compare credit card numbers, the names of cardholders and the Net address of buyers to spot scams. It will tie geographical information from its domain registry database (i.e., where you're likely to be logged in from) with data from its credit card clearinghouse service.

Click here for the full story from CNET

Albertsons imposes cards on Northern California shoppers

Albertsons, the nation’s second-largest grocery corporation, imposed its “Preferred Customer” surveillance card on all 183 of its Northern California stores on September 25th. This region includes the heavily populated San Francisco Bay Area, meaning that millions of shoppers throughout San Francisco, San Jose, and Silicon Valley will now be forced to participate in the chain’s data collection scheme if they wish to “qualify” for affordable food.

Click here to view our response

Click below to view Albertsons' "press release", their response to complaints, and a news article about this program.

After Albertsons started the card program in Idaho, the Idaho Statesman printed numerous letters to the editor about the card. We have compiled them for you here.

CASPIAN study finds standard prices at stores with card programs 28%-71% higher

We took a look at the "everyday" non-sale prices of 10 items at 4 different supermarkets in the Indianapolis area to determine how these prices impacted a consumer's grocery bill. We compared the prices at two card stores to two without card programs and discovered that not only are card stores stated "savings" inflated, every item you place in your cart that is not on sale is costing you dearly.

Everyday high prices: A comparison of standard supermarket prices

Survey Says...!

Two recent studies help to debunk the myth that card stores propagate that consumers "want" these programs. In the first, a survey conducted by British grocery retailer Asda found that 93% of the respondents prefered lower prices to "loyalty" cards, with shoppers also believing that these programs raise prices:
Asda Releases Survey Saying Loyalty Cards Don't Work

The second study was conducted by Weber State University, as reported in the Salt Lake City Tribune. The study divided consumers into three groups based on the frequency they shopped at a certain store, and found that none of the three groups favored the card program, even those that frequently shopped there.
Food Chains Pay a Price for Discount Cards

Two recent online polls, at Worldnet Daily and the Seattle Post Intelligencer (both with thousands of responses), had similar results. Those opposed to cards outnumbered those that liked them by a 3-1 margin, with fully 2/3rds of respondents opposed to the programs. It has become increasingly clear that the vast majority of consumers do not like or want these programs, a fact the stores continue to ignore as they roll them out.

Cards in the comics

The Sunday, July 28th edition of "Dilbert" represents the first time a comic strip has taken a look at this issue. Dilbert didn't seem to be too thrilled with the idea, however CASPIAN supporters were thrilled to see the issue highlighted, and we heard from lots of you!

Dilbert

We've recently come across some other wonderful comics that look at supermarket cards. This first one does a good job of reflecting our opinions about how these programs work. Click on the image to read the entire strip.


Our second comic serves as a good reminder that you don't have to go along with the crowd. Click on the image below to view the entire picture.

Media coverage of card and privacy issues continues to grow

The past few months have brought numerous articles in publications thoughout the country that have focused on both card programs and related privacy matters.

This Village Voice article takes a look at various issues surrounding cards programs and privacy, including the revelation that at least one store handed over shopping data to Federal authorities, even though they had not asked for it.
Buying Trouble: Your grocery list could spark a terrorist probe

A recent story in Wired took a look at retail surviellance, and the increasingly sophisticated methods they are using to compile data on shoppers. From cameras that analyze your behavior to floor sensors that track your every move, shoppers are being watched like never before.
Smile, You're on In-Store Camera

BusinessWeek Online spotlights the growing consumer movement against cards. On June 20 this was the headline article on FMI's Daily Lead newsletter, read by virtually everyone in the grocery and food industry.
How Grocery Stores Are Feeding Fears

This Tacoma WA News Tribune article takes another look at the controversy surounding QFC's roll out of a card program 6 months ago, and includes their own pricing survey.
Card-carrying shoppers

The Billings Montana Outpost took a look at Albertsons new card program in their area, and their informal survey of prices showed Albertsons non-card price to be as much as 50% higher than other area stores.
So what did ya buy?

This article from Deborah Pierce of the Seattle Press explores the relationship between price and privacy, and the direction these programs are headed.
Calling All Shoppers On Grocery Store Loyalty Cards

This Washington Post articles examines the "savings" issues surrounding cards, and how stores profit when manufacturers place an item on sale but non-cardholders pay full price. Shortchanged on Discount Cards?

Vin Suprynowicz's latest editorial in the Las Vegas Review-Journal exposes the sham of card programs.
After all, it's only groceries ... right?

We have also compiled a complete collection of articles that address the start of QFC's card program in Seattle, located on our QFC protest page

CASPIAN volunteers stage "Thank You" demonstration in Seattle

Albertson's imposes "Preferred Savings" Card on six Western states

On June 26th shoppers in Utah, Wyoming, Northern Nevada, Idaho, Montana and North Dakota were forced to give up their personal information in order to receive "sale" prices at Albertson's stores (See Albertson's Announcement). Albertson's decision ignores the negative response the store received from consumers when it "trial marketed" its card in Dallas last year. (See our protest images page for photos of this and other CASPIAN led protests.)

Kroger launches card program in San Francisco

Albrecht Debates West Seattle Thriftway President
CASPIAN founder Katherine Albrecht took to the Seattle airwaves last week to debate Paul Kapioski, president of the West Seattle Thriftway store. The store has come under fire from privacy advocates for introducing a fingerprint payment system on May 1, 2002. Many listeners called in to express alarm that anyone would think of using fingerprints to make purchases. Others called the program "disturbing." (Herb Weisman's ConsumerMan program, KOMO Talk Radio AM 1000, May 1, 2002)

Kroger Wants your Fingerprint!

Attention Texans! You are once again being targeted for a "test" to see how far you will tolerate supermarket privacy-invasion. Kroger, the nation's largest grocery chain, is using stores in Bryan/College Station, Texas to test its new "SecureTouch-n-Pay" fingerprint reader system which "enables customers to shop without needing to carry a purse, wallet or checkbook by incorporating biometric identity verification and electronic financial transaction processing at the POS [Point of Sale]." Those insane enough to participate must sign up by providing a fingerprint, along with personal and financial data, ID information, "loyalty" program information, and electronic payment options.

If this program is not stopped cold, someday all shoppers may be required to provide a fingerprint or DNA sample to simply walk through the door of a grocery store. The days of shopping at the supermarket using a fake or traded card are numbered. Pass this information on, and let Kroger know you don't want this coming to your town. If you are interested in participating in a protest of this technology, please let us know on CASPIAN's feedback page. ("Biometric Access Corporation's SecureTouch-n-Pay Brings Enhanced Transaction Processing to Kroger Stores." Biometric Access Corporation Press Release, April 11, 2002)

CASPIAN's Whitney Kelley goes on the Air in Seattle
CASPIAN spokewoman and protest coordinator Whitney Kelley appeared on talk radio to discuss price manipulation associated with cards. Callers jammed the station's phone lines with their own stories confirming that prices had already begun to rise since the program started less than one week ago. (KOMO Talk Radio AM 1000, May 6, 2002)

Supermarket Mergers And Acquisitions Up In 2001

In a year where merger and acquisition activity decreased across the food sector, the notable exception was supermarkets. In 2001, 27 supermarket chains changed hands, contrasted with 24 chains in 2000. The supermarket industry is becoming so consolidated that many consumers no longer have viable alternatives to the privacy-infringing national chains. Ever wonder why there are so few card-free shopping options in your town? In the past 9 years, 252 supermarket chains (representing thousands of individual stores) have been swallowed up by the big guys. ("Mergers And Acquisition Activity Drops To Lowest Level In Eight Years." The Food Institute Press Release, April 17, 2002)

For annual data see: http://www.foodinstitute.com/mergerchart.htm

CASPIAN Anti-Card Arguments Featured in Southern Press

North Carolina Alabama

North Carolina's Fayetteville Observer newspaper took a critical look at Food Lion and Winn Dixie's invasive card programs in a recent article prominently featuring CASPIAN arguments. The Decatur Post newspaper in Alabama also drew on CASPIAN's expertise to question the wisdom of "disclosing personal info for discounts." "Customer loyalty cards: Price vs. privacy." Fayetteville Observer, NC, April 17, 2002 "Are you beng tracked?" The Decatur Daily, AL, May 6, 2002

CASPIAN Confers with Other Privacy Advocates

CASPIAN founder Katherine Albrecht was an attendee at a three-day National Conference of Privacy Activists in April. Sponsored by the Privacy Journal (www.privacyjournal.net ) the conference brought together more than 60 privacy experts from around the U.S. and Canada. Topics incuded retail privacy, national ID, protecting medical and financial records, and invasive technologies. A plan emerged to form a national congress of privacy advocates to work together on a range of issues. (News coverage of one aspect of the conference: "Privacy advocates alarmed by prospect of national ID." Providence Journal, April 15, 2002)

Retail Customer Files Sought To Aid In Profiling

...Federal aviation authorities and two technology companies called Accenture and HNC Software are planning to test at airports a profiling system designed to analyze each passenger's living arrangements, travel and real-estate history, along with a great deal of demographic, financial and other personal information. Using data-mining and predictive software, the government then plans to assign each passenger a ''threat index'' based on his or her resemblance to a terrorist profile. Passengers with high threat indexes will be flagged as medium or high risks and will be taken aside for special searches and questioning.

Our system ''will check your associates,'' Brett Ogilvie of Accenture told Business Week. ''It will ask if you have made international phone calls to Afghanistan, taken flying lessons or purchased 1,000 pounds of fertilizer.'' The only problem: in order for the system to obtain answers to those questions, the nation's privacy laws will need to be relaxed. Federal laws currently restrict the personally identifiable information that the government can demand from credit-card and phone companies except as part of a specific investigation. ("Silicon Valley's Spy Game." New York Times Magazine, April 14, 2002)

Plans To Build Id-Tracking Into All Consumer Goods

The Auto-ID Center at MIT is studying ways of imbedding computer RFID chips into just about everything, including egg cartons, eyeglasses, books, toys, trucks, and money. Smaller than a grain of sand, the tiny chips send out an identifying signal designed to be picked up and read by devices in the environment. Reader devices can be installed in doorways, shelves, refrigerators, medicine cabinets, airports, and more. Just a few big-name sponsors of the new technology include Wal-Mart, Target, the Food Marketing Institute, Gillette, Procter & Gamble, Coca-Cola, UPS, the Postal Service, and the Department of Defense. ( "Things come alive." USA Today, April 11, 2002)

Junk Mail Databases To Alert Feds To "Suspicious Behavior"

For several years, CASPIAN has been warning that massive amounts of privately collected retail data could fall into the hands of the government and be used against citizens. Here's proof that at least one former U.S. government official is thinking along those lines, too:

Bill Clinton has been outlining how technology can play a key role in defeating the new brand of terrorism. The former US president said that information management systems similar to those used by the big mass mailing companies could provide an early warning about suspicious behaviour. "More than 95% of the people that are in the United States at any given time are in the computers of companies that mail junk mail and you can look for patterns there," he told BBC World's ClickOnline. ("Clinton backs tech war on terror." BBC News, April 8, 2002)

CASPIAN unveils the Hall of Shame

John Vanderlippe (author of the Kroger before and after price survey and tireless volunteer for the anti-card cause) has treated us to a hilarious spoof spotlighting the excesses of the retail marketing industry. John searched the back alleys of the retail surveillance underworld to find companies low enough to qualify for such awards as "The Enron," "The Freud," "The Godfather," and more.

Winn-Dixie Imposes Surveillance Card!

Winn-Dixie, the nation's 8th largest grocery chain, introduced a surveillance card in Florida and southeastern Georgia on March 7th, after years of being one of our favorite card-free stores.

We have already begun to hear from angry shoppers who are disappointed in Winn Dixie for poking its unwelcome corporate nose into their grocery purchase business. CASPIAN is mounting an anti-card campaign against Winn-Dixie in the affected regions of Florida and southeast Georgia. Sign up for our mailing list for updates. ("Winn-Dixie to Reward Loyal Customers."Newstream.com March, 2002)

Winn-Dixie Testing Mug Shot ID System

Winn-Dixie wants more of you in their database! Recording what customers buy isn't enough: Winn-Dixie now wants to make a permanent record what its customers look like -- and record all the other information on their driver's licenses, as well. Winn Dixie customers will no longer be allowed to pay with a check unless they first pre-register their driver's license photos and identifying information into the True ID® identity verification system from Identico Systems. This technology was recently imposed on shoppers at stores owned by Brown & Coles stores in Washington and Oregon, too (see below). (Identico Systems Press Release via Yahoo Supermarket News 3/26/02)

"Smart Card" News

If the news here is not scary enough for you, now you can get creeped out on a regular basis by Smart Card News. This misguidedly optimistic site will inform you of the progress of "Smart Cards," the gateway to a cashless world where chip-encoded ID numbers will be required to buy food (and everything else). It's produced by Faulkner & Gray EC Research, publishers of such gems as Card Marketing, Card Technology and the ever ominous, and now hopefully defunct ID World magazines.