Consumer products, embedded with sensors and the ability to communicate, challenge traditional methods of managing the risks to privacy and security presented by these innovative offerings.1 Yet the rewards of capitalizing on these networks to create new marketing avenues and business models may give retailers the competitive edge they need to survive.
Technology now exists to enable consumers to purchase the products they see in a movie on their wireless devices in real-time. Facial recognition tools in mannequins can profile the demographics of customers entering a retail store and smart phones can identify customers as they walk by their favorite items and send them real-time advertisements and discount coupons. At the heart of the policy debate, and the regulatory activity surrounding this new technology, is whether a consumer can remain anonymous or opt out as various devices communicate and sometimes store consumer preference and location data. To succeed in this new world, consumer businesses will need to navigate turbulent and uncertain waters in consumer privacy and technology security.
