In this paper we will discuss the potential legal, ethical, and information security related to the Frequent Shopper Program Kudler Foods has developed. Kudler Foods was founded by Kathy Kudler on June 18, 1998. A couple of years later she opened up two more stores in 2000 and 2003 all located in San Diego, California metropolitan area. There are three locations La Jolla, Del Mar, and Encinitas that specialize in the finest of selected foodstuffs, wines, fresh produce, cheese, condiments, bakery, and fresh meat and seafood. To increase revenue Kudler's decided to develop a Frequent Shopper Program to track purchase behaviors of their consumers, while rewarding the consumers with high end gifts, airline first class, upgrades, and specialty foods instead of discounts. The consumer will be able to achieve the points by redeeming them when they have an allotted number of points by purchasing products from Kudlers. Legal- First we will discuss the legal concerns associated with the Frequent Shopper Program. The big legal concern with the program is the potential of identity theft. When installing a Frequent Shopper Program there is a risk of consumer's information being leaked, such as phone number's email addresses, social security numbers, and other vital information. There is also a risk of losing consumer's information; therefore a consumer may think they are being awarded points, but in reality their not. This can make a consumer mad and he/she may write bad reviews on the business causing it to lose other potential consumers; which would result in money loss. Ethical- Now let's discuss the ethical concerns for the Frequent Shopper Program. There should be a privacy policy implemented to ensure customers data is not being shared without the consumer's permission. Also Kudler's should fully disclose what information is collected and how it will be used. By doing this the consumer informed consent can be secured. Information Security- Information security concerns with the Frequent Shopper Program would be someone obtaining the consumer information and leaking it to non-affiliated companies or entities. To protect against this threat there should only be a certain amount of people who can access your vital information. There should also be a login and password security implemented on the system to protect against just anyone gaining access to the information. The information system has to be highly protected if not protected this will destroy the organizational structure significantly. Consumers will feel unprotected and they will inform other potential consumers about their experienced dealing with the Frequent Shopper Program, which will damage the reputation of Kudler Fine Foods as a whole. Kudler Foods will suffer significantly loss in revenue and therefore may result in closings of store.
By following these suggestions this can ensure that Kudler Fine Foods Frequent Shopper Program will thrive. Consumers will feel protected and will let other potential consumers know about their great experience with this company. This will result in an increase of revenue and may increase business by 20%.