Blunkett brings loyalty cards into political spotlight

by Daniel Farey-Jones,, Brand Republic 23-Nov-04, 07:30

LONDON – Loyalty cards have been inserted into political debate on personal information after a speech by Home Secretary David Blunkett promoting the government's proposed compulsory ID card scheme.

Blunkett contrasted the government's scheme with loyalty cards such as Nectar, saying that the government would collect much less personal information than commercial schemes. During the speech, he held up a Nectar card as an example of such a scheme, which drew fire from Nectar owner Loyalty Management UK.

In his speech to the Institute for Public Policy Research last week, Blunkett said: "Critics of the national ID cards scheme who suggest that it would threaten our privacy should be reassured that under the proposed scheme only very basic personal detail such as name, address, date and place of birth will be held. Alongside this will be biometric information, which will establish unique personal identity.

"Store loyalty cards keep continuously updated details such as the size of a person's household, whether they're employed or not and the ages of their children, besides what they like to eat, where and how often they shop and even what brand of toothpaste they use.

"If you do hold a store loyalty card -- and the odds are that you do -- you have already consented to all this information being repeatedly shared with other companies without any requirement to ask again for your approval."

Rob Gierkink, CEO of Loyalty Management UK, responded that to draw a parallel between voluntary loyalty schemes that people opt in to, as opposed to a mandatory state-run ID card, was simply ludicrous.

"While holding up a Nectar card, Mr Blunkett made a number of statements about store loyalty cards that do not apply to Nectar because we do not sell our data and we have strict controls in place.

"Since Nectar was formed we have worked closely with the Information Commissioner's office and we have put in place strict controls over and above government guidelines to ensure that the trust our collectors have placed in us is not abused."

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