Mar 6, 2015

By Hannah Walker, FMI Director of Government Relations, Food Marketing Institute
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The cell phone has become a virtual lifeline for millions of Americans.  Every day we use it to send emails and texts; utilize apps to find coupons at our favorite store, read the latest celebrity gossip blog and shop for everything from socks to stocks. Every once in a while, we even use this mini-hand-held computer to place an actual phone call. 

The common cell phone is a great micro economy in its own; in a matter of a few years we have grown comfortable both receiving massive amounts of data and value from technology while sharing our information and shopping habits with various trusted entities. Still, embedded in our new world of high-capacity “big data” is an omnipresent debate regarding consumer privacy. 

Just last week, President Obama unveiled his “Consumer Privacy Bill of Rights” and released his draft privacy legislation.  As attention grows on consumer privacy – so will consumer concerns, and possible misunderstanding of what retailers collect and why – unless we proactively approach these questions. The President’s proposals will help start that conversation, but broadly expanding Federal Trade Commission authority over merchants preemptively without adequately defining the problem sets a dangerous precedence and in the end will stifle innovation that would ultimately benefit our customers.

For generations, the local grocer knew his customer; he knew the Smith family ordered a ham every Easter, and with that in mind, he may have offered the Smiths a special on dinner rolls to go with the Ham. That knowledge of the customer has incredible valuable to the grocer and every merchant, it allows a retailer to personalize the shopping experience for the customer that will hopefully lead towards a loyal shopper for life. 

 The Big Data debate is coming our way, and we must be prepared to candidly share what we collect, why and the precautions we take to protect this data.  As an industry, we have a unique perspective and opportunity to identify areas that would pose a real threat to our consumers, not theoretically, and find a solution to solve that specific problem.  This is a situation where a scalpel, not a hammer, is needed to ensure our customers remain confident in shopping with us, and we in turn properly handle the data they entrust us with.

Your FMI Government Relations team is closely following the data privacy debate here in Washington and in the states.  We are always looking for input from our membership, please contact Hannah Walker at hwalker@fmi.org with any thoughts or comments you may have on this emerging issue.