Wash. — Consumer advocates are warning “loyal” grocery shoppers that scanning their loyalty cards at the checkout may be trading far more than they realize for discounts and rewards: their personal information is also fueling a lucrative industry worth hundreds of millions of dollars annually.
Kroger alone earned $527 million selling personal shopper information to data brokers in 2024 and could make $825 million from shopper profiles next year, accounting for 35% of the company’s total revenue, according to a Consumer Reports investigation.
“They’re making money off our data, and we have absolutely no control over what they get and how they use it,” said Herb Weisbaum, a consumer editor with Checkbook.org.
The data collection from grocery store apps extends far beyond your purchase history. Some apps also have the technology to track shoppers’ precise locations within stores, note languages spoken and employment information, and may also collect biometric data, such as facial recognition, according to privacy policies reviewed by KIRO 7.
“The game we’re playing here in America now is if you want the savings, you’ve got to be willing to give up your data,” Weisbaum said, adding that shoppers agree to some data surveillance when they “OK” the long privacy policies.
The Consumer Reports investigation also revealed that some shopper profiles collected by corporations contained significant errors, raising concerns about the accuracy of information being sold to third parties. State Rep. Shelley Kloba, D-District 1, has introduced House Bill 1671, the “People’s Privacy Act”, to give consumers rights over what information is collected and sold.
The legislation has been pending for several years.
“There’s a lack of transparency,” Kloba told KIRO 7. “Most people have no awareness that this data is being collected, they don’t have an awareness of what gets done with it, and they certainly don’t have an understanding of how it can be used to harm them.”
The proposed law would give consumers the legal right to see what data has been collected about them, correct errors, and opt out of targeted profiling. It would also limit what types of information corporations could collect and sell through a principle called “data minimization,” requiring companies to collect only information necessary to deliver goods or services.
Nineteen states, including neighboring Oregon, have enacted similar privacy laws, but Washington is not among them.
Ellen Hengesbach, a representative of PIRG, a nonprofit consumer advocacy organization, said the companies often collect far more information than necessary.
“The product should be your groceries, not your personal information,” Hengesbach said. “These practices are all too common and are primarily dangerous for consumers’ personal security,” Kloba said. Data brokers who purchase consumer information can target individuals with persuasive content to influence elections, among other potential harms.
When asked whether the legislation interferes with commerce, Kloba responded: “At what cost?” Major grocery chains, including Safeway, Albertsons, and QFC, offer immediate discounts and digital coupons through their loyalty apps, but users must agree to extensive legal disclaimers before accessing savings.
KIRO 7 reached out to Albertsons, Safeway, and Kroger for comment regarding the privacy concerns and HB 1671. Kroger referred us to the Northwest Grocers Association, and our emails were not returned.