Not gonna lie: We love a perk from a loyalty card. But when you sign up for a loyalty program, remember that you are trading your information for those rewards.
Surveillance pricing.
“Surveillance pricing” happens when a retailer gathers your information and uses it to estimate how much you are willing to pay. For example, if you are stranded somewhere and need to get home, Uber could charge you more if your phone is at 3% than if it’s at 80%.
Your consumer profile. The information profile includes assumptions about your personality, health, interests, and buying habits, based on your past purchases and browsing history. Sometimes the information is sold to third-party data brokers who then use it to send targeted ads.
Privacy concerns. There are privacy concerns tied to the use of loyalty cards. If you buy a pregnancy test, a hair loss remedy, or something to kill the roaches in your apartment, do you need to get bombarded with ads for cribs, wigs, and extermination services?
You don’t have to give up your loyalty cards if you are getting value out of them. Just remember that you don’t owe any retailer your loyalty—or your information.