News

Malls say 'No' to tracking customers via cell phones

November 28, 2011

Two malls planning to test new technology designed to track shoppers' movements via cell phone signals have nixed those plans after a U.S. senator raised concerns about privacy, according to the Consumerist.

Designed by Path Intelligence, Footpath uses monitoring units distributed throughout the retail environment to sense the movement of customers by triangulation. It then runs the data through analytics, and sends it to retailers through a secure website.

Options include tracking response to mailers and other advertising by providing the equivalent of Web metrics such as unique visitors, page impressions and click-through rates.

The technology, according to Path CEO Sharon Biggar, can help retailers boost revenue.

Two malls in the U.S., Promenade Temecula in Temecula, Calif., and Short Pump Town Center in Richmond, Va., began using the technology on Black Friday and had planned to test it through New Year's. However, both malls suspended the trial after Senator Chuck Schumer (D-NY) said at a press conference that the malls should have given shoppers the choice to opt-in, instead of the choice to opt-out, which they could do by turning their cell phones off.

From the story:

Forest City Commercial Management did not say that the plans to use Footpath were being completely scrapped, but only put on hold while the company "works with the system developer on possible enhancements, and in deference to concerns raised by Senator Schumer."

The technology is already used in Europe and Australia.