Privacy row hits Path Intelligence in USA
Published: 07 December, 2011
UK people counter moves to counter opposition from US politicians and media
A trial at two US malls of Path Intelligence’s people-counting technology, which relies on tracking mobile phone signals, has been halted after protests about alleged invasions of privacy.
Path Intelligence had reached agreement with landlord Forest City to monitor traffic and Promenade Temecula in Southern California and Short Pump Town Center in Richmond, Virginia, from ‘Black Friday’ – 25 November – through to New Year’s Day.
In accordance with its usual practice it put up posters in the malls explaining that it was monitoring mobile phone connections but the move provoked protests from privacy and consumer rights campaigners. Forest City cancelled the trial in the face of the adverse publicity.
US Senator Charles E. Schumer led the campaign. “A shopper’s personal cell phone should not be used by a third party as a tracking device by retailers who are seeking to determine holiday shopping patterns,” he said. “Personal cell phones are just that – personal. If retailers want to tap into your phone to see what your shopping patterns are, they can ask you for your permission to do so. It shouldn’t be up to the consumer to turn their cell phone off when they walk into the mall to ensure they aren’t being virtually tailed.”
And the senator asked the Federal Trade Commission to explore how this new technology fits into regulatory controls dealing with consumer privacy.
Path Intelligence CEO Sharon Biggar told Shopping Centre that the company was intent on continuing its roll-out in the USA. “We work in partnership with a digital signage firm - Comqi - based out of New York and in the New Year will be opening our second US office in Chicago,” she said.
Biggar said opponents misunderstood the technology and the way it is used. “We will continue to emphasise the lengths that we go to protect privacy and we will also continue to draw the analogy between the information that we provide and online analytics,” she said.
“In both the US and Europe there is a real concern that bricks and mortars stores are struggling to compete with online retailers. One of the reasons online retailers are performing so well and growing so fast, is because they are able to experiment and optimise their site based on direct feedback from shoppers and how shoppers are behaving on that site.
“We are seeking to level the playing field and bring that same depth of understanding on how shoppers are behaving to bricks and mortar stores. No one wants to see their local store go out of business and we will continue to show how our data can assist retailers in these difficult times,” she concluded.
