Rockefeller questions credit card companies on plans to use consumer data

{mosads}According to the Journal, the plans could eventually allow advertisers to target a weight-loss ad to a person who has swiped their card at a fast-food restaurant, for example.  

MasterCard reportedly circulated a document to advertising companies earlier this year about linking Internet users with their purchasing behavior. Because MasterCard does not collect people’s names or addresses when processing their transactions, the company would have to resort to other methods to identify customers.

The company document refers to MasterCard’s “extensive experience” linking “anonymized purchased attributes to consumer names and addresses” with the help of third-party companies.

“As a general matter, I am already concerned that privacy protections afforded to American consumers in the commercial marketplace are inadequate,” Rockefeller wrote. “”Allegations that MasterCard is contemplating a combination of information databases — heretofore unconnected — that could allow the company or non-affiliated third parties to build and maintain consumer profiles of unprecedented proportions raise new concerns.”

A MasterCard spokesman said privacy and data protection are “paramount” to the company. 

“Simply put, MasterCard does not receive cardholder names and contact information with card transactions,” the spokesman said. “Nor does MasterCard link our anonymous information to individuals. MasterCard is confident that we are in a strong position to address Senator Rockefeller’s concerns.”

A Visa patent application published in April describes using information from DNA databases, social networks, credit bureaus, search engines and other sources to create consumer profiles for ad targeting, according to the report.

Rockefeller wrote in his letter to Visa that the allegations are “a cause for alarm.”

Visa did not immediately respond to a request to comment.

Rockefeller asked the companies to describe what information they collect about consumers and what their plans are for the future. He requested they respond by Nov. 30.