From WaPo (paywall?):
Scanning a loyalty card might be costing you money.
Companies say they’re rewarding your devotion with points, discounts and perks. But behind the scenes, many are using these programs to monitor your behavior and build a profile — then charge you what they think you’ll pay.
I discovered evidence of this in my Starbucks app. Using California’s privacy law, I asked the company to send me the data its rewards program had collected about me.
Then I shared that data with two former Federal Trade Commission officials who spent careers defending consumers. They spotted a startling pattern in the numbers: During months when I bought more coffee, the app offered me fewer promotions. Sure, I was still collecting “stars” I could use for freebies. But the more loyal I was, the fewer discounts I got.
For the record, Starbucks denies it.
Look, call them by their most accurate name: identification cards. They let retailers identify and leverage individual buying habits, maximizing profits on your back.
I’m fortunate, I don’t think I’ve ever had such a card, but for unrelated reasons, not because I’m paranoid. Keeping life simple pays off.
