Kudler's Frequent Shopper Program: Case Study

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Possible Legal, Ethical, and Information Security Concerns Related to Developing Kudler’s Frequent Shopper Program Legal Concerns It is a company’s legal responsibility to take steps to correctly secure or dispose of consumer and employee data. Financial, children’s personal data, and credit report derived data may raise additional concerns with compliance. If any of Kudler’s customers and or employees become victims of identity theft, Kudler may have legal responsibilities to them. The FTC (Federal Trade Commission) does regulate and oversee business privacy laws and policies that have an impact on customers. While it is not required by law, a company’s online and offline privacy policies are pledges to their customers about how data will be collected, used, shared, and protected and the FTC prohibits deceptive practices. U.S. Small Business Administration…show more content…
Any deceptive practice in business no matter what it is carries a maximum $2500.00 fine and no more than six months in the county jail. US Legal INC. (2010) California Deceptive Trade Practice Laws. Retrieved 03/05/2013 from http://businesslaw.uslegal.com/deceptive-trade-practices-laws/california-deceptive-trade-practices-laws/. Since Kudler is based in California, they are also subject to the Club Card Disclosure Act of 1999. It prohibits club card issuers from 1) requesting a driver’s license or social security numbers and 2) Kudler could not sell or share personal customer information. Only Membership card stores (like Sam’s Club) are exempt. Privacy Rights Clearing House. (N.D.) 5. Customer Loyalty Programs. Fact Sheet 15: What Personal Information Should I Give Merchants? Retrieved 03/05/2013 from

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