Walmart shoppers retailers are finding something unexpected on their carts a small, box-shaped device fixed to the frame with no clear explanation. The hardware is sparking conversations about how far in-store tracking might go, and whether the kind of surveillance long associated with online shopping is being reflected in the physical act of shopping.
The devices that have been referred to as ‘compact and unbranded’ have been observed to be placed on the conventional carts without any labeling that defines the functionality of the devices. This sudden rise of the devices has raised some concern among the customers who are left to wonder if the devices have some form of location sensors or location trackers. This comes at a time when the retail industry is incorporating technology into the shopping process.
A part of the concern lies in the innovations that have been developed and demonstrate the level of sophistication that shopping carts could reach. Recently, Walmart applied for patents involving the use of biometric cart handles that could measure heart rate, body temperature, and grip strength. The innovations proposed the development of carts that could recognize when a person was experiencing signs of distress or illness and notify the appropriate personnel in real-time, which, although intended to assist the customers, raised questions about the handling of the data.
These issues are further heightened when considering the current state of the retail industry, where the collection of data is already a fundamental part of business. For instance, loyalty cards have been observed to record buying habits, create profiles of consumers, and even sell this information to third parties. It has recently been discovered that this creates hundreds of millions of dollars for major chains.
Such technology integrated into shopping carts could, theoretically, further extend this information-gathering function into the physical store itself. Monitoring the path taken through the aisles, the amount of time spent within a given part of the store, or even associating the use of the cart with a rewards card would build a rich picture of consumer behavior. The Federal Trade Commission has already explored the use of this level of information to inform price or promotional changes, a practice called surveillance pricing, which could see varying individuals being asked to pay varying sums for the same product, depending on their profiles.
Some of the technology that could potentially make such tracking possible is actually prevalent in managing supply chain. Radio Frequency ID (RFID), for example, has the ability to transmit information to store-based computer systems to instantly locate items. This technology has been applied in retail to track items, speed up checkout lines, and even implement cashless stores. But some critics would say that such technology could potentially be used to track consumers as well, either inadvertently or purposefully.
One problem for consumers who are concerned about their privacy is that these devices are not very transparent. Unlike “smart” shopping carts that consumers can choose to use if they want to, these devices are automatically included on every shopping cart. This means that instead of talking about convenience, it is a matter of consumers having a right to use a shopping cart that is not electronic.
The broader issue has started to receive attention from the regulatory bodies. The FTC has acted against firms that collected and then proceeded to sell location data with precision when the consent was not adequate, indicating how sensitive information is sometimes warehoused for quite a long time and the danger this poses when it comes to location-based services.
Until a clearer picture can be established about the nature of the devices themselves, the carts themselves are likely to be at the center of a debate about the future of technology in the shopping experience. Whether the devices are merely anti-theft devices or the beginning of a system of advanced tracking of shoppers is beside the point. The point is that the technology of shopping is a rapidly changing field.
