Visa and MasterCard are reportedly working on a system for delivering online behavioural ads to consumers, based on what they buy in shops.
The US-based credit card networks have developed plans to place shoppers into groups based on their in-store purchasing history and sell the information to marketing firms that would deliver online behavioural ads.
Publishers and advertising networks currently use cookies to track user behaviour on websites in order to target adverts to individuals based on that behaviour.
MasterCard’s proposed system involves anonymously grouping consumers into segments based on what they have bought and selling the information on to advertisers.
Visa’s plans involve dividing consumers into groups based on a number of segments, including purchasing history and location, before selling that data on.
There could be a major sticking point over customer consent, however, although it is hard to imagine either company would have not considered this– especially as behavioural advertising is such a highly contentious issue in itself
According to legal experts, permission could be gained through the terms and conditions of card-holders. Iain Connor, advertising expert at Pinsent Masons said: “Whether Visa and MasterCard’s existing data protection notice and terms and conditions would constitute ‘informed’ consent or whether new terms and conditions would need to be drawn in order to achieve that level of consent remains to be seen.”
