ID24: Study shows that 70% of the retailers offering loyalty don’t ask the customer to legally opt-in when subscribing to a membership programme in-store. Most famous retail brands in Sweden face challenges with upcoming GDPR.
The two students Oskar Hiort af Ornäs and David Samuelsson at Thorén Business School in Uppsala helped ID24 to conduct this three week retail study. Five months before GDPR goes live we visited the most famous retail companies in Sweden. The results show that 35 out of 50 retail stores we visited didn't ask us to legally opt-in (confirming the terms and conditions) when signing up for loyalty at the till.
- It was sometimes funny to sign up in retail stores that only sell ladies products as a member. With Christmas coming up I mentioned they might send some nice inspiration for Christmas gifts. It was surprising to see how many retailers don’t ask you to confirm the terms and conditions now that GDPR is coming, says David Samuelsson, student at Thorén Business School who did most of the interviews during the three weeks period.
Stricter personal data laws following the European General Data Protection Regulation (GDPR) 2016/680 are to be implemented by the EU countries before May 25, 2018 and they will play a big role for retailers.
Retailers who don’t collect legal opt-ins risk high fines according to GDPR
GDPR requires retailers to collect clear confirmations of their terms and conditions It is not sure how retailers who didn’t collect legal opt-ins until today will be affected. Those retailers who lack opt-ins might have to delete large parts of their databases or have to collect updated opt-ins from existing members. In order to comply with GDPR a proven consent is required. The GDPR regulation stipulates fines up to 3% of the retailers turnover for those that don’t follow GDPR.
- We would recommend that all retailers ask existing and future members to confirm the terms and conditions of a loyalty programme. Even if you have prior consent and confirmation you should still explicitly ask existing members to confirm the terms and conditions the next time they visit the website or the store with customer facing displays, says Niklas Sandell, attorney at the IP law-firm Groth & Co, and co-author of the upcoming second edition of the book ”Riskerna med Reklam, Produkter och Varumärken”.
The second display solution from ID24 looks to help increase the results of marketing campaigns for retailers.
- If customers are able to type in their own email, mobile number and legal opt-in themselves digitally we see a 50-100% increase in more people offering you their data. If an existing member identifies on the iPad they can simply update and confirm the terms and conditions that apply from the retailer, says Jakob Gottlieb, heading business development at ID24.
ID24 is a Swedish based retail IT company offering second display solutions since 2008. We are live in over 20 countries and adapt the solution for each market. Customer can identify, sign up, ask for digital receipts and much more on our second displays. Read more on http://id24.com/retail-aligning-gdpr/