FOR IMMEDIATE RELEASE

Albertson's Loyalty Card Creates Consumer Backlash

DALLAS (Dec. 17, 2001) -- Albertson's new "Preferred Savings Card" has come under fire from a national privacy group and shoppers in the Dallas/Ft. Worth area where it was recently introduced. CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering) has condemned the card program as expensive, inconvenient, and invasive. The group is calling on Albertson's to discontinue the program.

Albertson's, the nation's second-largest grocery chain, had built up a loyal following among pro-privacy shoppers with its "No Card Needed" promotional strategy. By abandoning that strategy and introducing a card program in the Dallas/Ft. Worth area, Albertson's joins rivals Safeway, parent company of Tom Thumb stores, and Kroger, both of which have had card programs in place for several years.

"It is difficult to see how a card will provide Albertson's with a distinct competitive advantage when its key competitors have the same program," said Katherine Albrecht, CASPIAN founder and director. "In fact, Albertson's is losing the one competitive advantage it had -- the fact that shoppers trusted the chain to respect their privacy and not burden them with the hassle of one more card."

CASPIAN has been inundated with complaints from shoppers in the greater Dallas area since the card was introduced on November 7th. Most express concern over the invasive nature of the cards, which collect detailed demographic and purchase information about shoppers. Even more upsetting to many long-time Albertson's shoppers is the sense of betrayal they feel.

Whitney Kelley, a Dallas-area shopper and CASPIAN volunteer explains, "We left the card stores to come to Albertson's because we believed their no-card promise. I have a house filled with Albertson's products. But now I feel like Albertson's has slapped me in the face."

When a Dallas talk radio show recently aired a segment on Albertson's new card, it expanded from a planned 15 minutes to nearly six hours of air time due to overwhelming listener response.

"It was one of the highest volume of calls we've ever gotten from any topic," said Kimyla Stegall, executive producer of KRLD NewsRadio's Marty Griffin show. "I'd say that 95% of the calls that we received were negative, meaning that they did not want the card. We heard shoppers' voices loud and clear and they definitely have a bad taste for it."

Albertson's cashiers also acknowledge consumer displeasure over the new program. Matt Prewett, a Dallas-area shopper, recently asked a cashier about the in-store response.

"The cashier said a lot of people were refusing to sign up. The corporate office claimed they did a survey showing people want the card, but she said she sure couldn't figure out who they surveyed." Prewett volunteered with CASPIAN after frustration with Albertson's led him to the group's website. "I think Albertson's would be making a big mistake to implement this program nationwide," he said.

Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN) is a national grass-roots consumer group dedicated to fighting supermarket "loyalty" or frequent shopper cards. CASPIAN's efforts are directed at educating consumers, discouraging marketing strategies that invade shoppers' privacy, and encouraging privacy-conscious shopping habits.

For more information, visit CASPIAN's website at http://www.nocards.org.

CASPIAN
Consumers Against Supermarket Privacy Invasion and Numbering
An information clearinghouse and resource for community and national action

© 1999-2005 Katherine Albrecht. All rights reserved.