Lawmakers Weigh Restrictions on Retail Track of Shoppers Via Wi-Fi

By Patrick Farrell

ANNAPOLIS (Feb. 22, 2014)—House Bill 924, proposed to the House Economics Committee on Friday by Delegate Sam Arora (Democrat, District 19, Montgomery Co.), would prohibit Maryland retailers from using consumer cellphone Wi-Fi signals to track their shopping habits, unless merchants post notices at store entrances.

Using a customer’s Wi-Fi signal, retailers are able to track individual shopping habits -- from venue to venue—and then use this data to provide businesses with detailed audience reports.

“You would be surprised how much information stores know about you as soon as you walk in the door,” said Marceline White, Executive Director of the Maryland Consumer Rights Coalition. (Corrected 24-FEB-2014)

“You'd be surprised how much information a store knows about you the moment you walk through the door,” said  Delegate Arora.

Two companies—Turnstyle Solutions and RetailNext—are currently paving the way for this new form of customer analytics, White said.

These tracking technologies allow retailers to identify repeat customers and observe consumers walk through stores, according to a legislative analysis of the proposal .

While the proposed bill would do nothing to end these practices, it would require stores to display notices at every entrance to alert customers that their shopping habits are being tracked.

“We certainly know [retailers] have loyalty cards…but that’s something you opt into,” White said.

With posted notices, customers would essentially be able to opt-out by turning off their cellphone Wi-Fi.

Patrick Bonoho, President of the Maryland Retail Association, argued against the bill, warning of the possibility of “unintended consequences” to posting notices.

Bonoho cited high-levels of retail theft in Baltimore, though lawmakers questions and comments indicated they were skeptical as to how posting notices would introduce a threat to security in retail establishments.

The proposal highlights what seems to be a growing trend in Annapolis: as technology rapidly advances, lawmakers must take notice -- and keep up. The legislature is weighing other privacy matters this year, including how long law enforcement agencies can retain license plate tracking records.

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