Marketing
Consumer Reports Alleges Kroger Misuses Customer Loyalty Data Again
Consumer Reports Renews Allegations of Kroger Customer Data Misuse
Loyalty Program Raises Privacy Concerns Once Again
Consumer Reports has accused the grocery giant of Kroger customer data misuse for the second time in two weeks. The report alleges that Kroger improperly collects, uses, and even sells loyalty member data. Concerns around inaccurate customer profiles and third-party data sales have reignited public debate.
According to the new report, Kroger gathers sensitive personal information from its loyalty program members. For example, one Oregon resident obtained his Kroger profile under a state privacy law. He discovered incorrect data regarding his income and education level.
The report also suggests that Kroger profits from selling consumer data to advertisers and enrichment platforms. Consumer Reports called this practice misleading and troubling.
Selling Data Adds to Kroger’s Alternative Profits
Alternative profits now account for more than 35% of Kroger’s total net income, according to the report. These earnings include revenue streams outside product sales—like digital advertising based on loyalty data.
The article states that Kroger sells personal data to other companies as part of this strategy. Meanwhile, only 13 states require companies to give customers the right to opt out of data collection.
These findings suggest the potential scale of Kroger customer data misuse and how few protections exist for shoppers nationwide.
Kroger Defends Its Use of Customer Data
Kroger has publicly denied the claims. In an email to Supermarket News, the company described the article as misleading. The grocer said it responsibly uses data to enhance customer experiences and does not purchase demographic data from external providers.
However, the company also confirmed it does not routinely correct inaccuracies in customer profiles. Consumers can file correction requests through Kroger’s privacy policy, but that process remains unclear to many.
Kroger emphasized that its customer segmentation strategies remain confidential. The company declined to disclose how it defines customer loyalty or what criteria it uses for segmentation.
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