Privacy considerations for loyalty programs

Loyalty programs are a popular way for retailers to find out more about their customers, and in return offer personalised and tailored rewards. By necessity, loyalty programs involve the collection of personal data, which enlivens a swathe of additional regulatory requirements. Numerous examples of high-profile data breaches have drawn consumers’ attention to how their data is collected and stored. This article addresses the key privacy issues and requirements that should be considered by businesses that have, or are looking to implement, a loyalty scheme.