Service Request Sr-Kf-013

Service Request SR-kf-013

Albert Wittig

BSA/310

07/18/2013

T. Thacker

In reference to your upcoming plan to implement a new frequent shopper program, we have reviewed the implementations of your plan and would be happy to assist you in this project. First, however, we feel it to be necessary to go over some details and potential draw backs in your upcoming plan. There are potential legal, ethical, and security issues that could arise from this program if not handled properly.

Legal concerns for this project can vary, depending on how you set it up. It is important for you to understand your obligations and expectations from a legal point of view. When implementing this new reward program, you, as a company, will be responsible for the security of any personal data and financial information gathered on your customers. Should this data be leaked out, you could find yourself faced with fines and unhappy customers. Any credit card information, personal information such as name, date of birth, address and phone numbers should be stored securely so that no information can be leaked out of the company.

It should be known that many customers will not like this new program. In order to track their purchases, they will have to relinquish personal data mentioned above and many people find that to be an ethical violation of their privacy. This could negate any potential gains from the program if your customer base lessens. The gathering of personal information is always a tricky matter and should be handled with care.

There are ethical and social issues that tie into this equation as well, such as information rights and obligations, property rights, accountability, quality of the system in place or to be implemented, and quality of life. Again, you are responsible for any information leaks of personal data, rather from an employee or known technical issues such as data – mining. Privacy issues can be from cookies,...