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WASHINGTON — It's not just the government that might be keeping tabs on you. Many retailers are tracking you, too – or at least your merchandise returns. The companies say it's all in the name of security and fighting fraud. They want to be able to identify chronic returners or gangs of thieves trying to make off with high-end products that are returned later for store credit. [...]
Many buyers aren't aware that some returns, with and without receipts, are being monitored at stores that outsource that information to a third-party company, which creates a "return profile" that catalogs and analyzes the customer's returns at the store. [...]
"There should be no secret databases. That's a basic rule of privacy practices," says Ed Mierzwinski, consumer program director at the U.S. Public Interest Research Group. "Consumers should know that information is being collected about them." [...]
"Most people think when they hand over a driver's license that it's just to confirm identity and not to be kept to be used for future transactions," says the Federal Trade Commission's Bob Schoshinski, assistant director at the agency's division of privacy and identity protection. "It shouldn't be that a third party is keeping a profile on someone without them being informed what's going to happen when they hand over their driver's license or some other information to a retailer."
In some cases, the disclosure by retailers is conspicuous. In others, not so much.
This is an excerpt. Full story here.
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