Lawmakers query company about expanded data collection, changes to privacy policy
 
WASHINGTON, D.C. – Representatives Joe Barton (R-Texas) and Edward J. Markey (D-Mass.), co-Chairmen of the House Bi-Partisan Privacy Caucus, sent a letter today to Groupon asking about the company’s new privacy and data collection policy. It was recently reported in The Washington Post that the “deal-of-the-day” company would be dramatically expanding the categories of personal information it collects and shares with partners and third parties. After a spate of recent data and privacy breaches and increased concern that customer’s personal information could be vulnerable to hackers, Reps. Barton and Markey’s letter queries Groupon CEO and Founder Andrew Mason about the company’s data collection and sharing policies and practices.
 
“Groupon offers consumers great deals on everything from spa treatments and hot air balloon rides to pub grub and concert tickets, but avoiding full price shouldn’t put your privacy at risk,” said Rep. Barton. “Groupon has made it clear that they are expanding their business model by collecting more personal information and even tracking your location. While I do understand that companies participate in these practices to offer better services, I strongly believe that Americans should always be informed of how their personal information is being used and be given control of when their information is shared. We want to make sure that ‘the Groupon Promise’ is kept and that going after a good online deal doesn’t lead to your information being sold to the highest bidder. I look forward to Groupon’s responses.”
 
“Groupon offers discounted prices on personalized deals, but it shouldn’t discount the protection of customer’s personal information,” said Rep. Markey. “Supporting neighborhood businesses is an important way to strengthen local economies. Still, signing up for a discount on a nearby deal shouldn’t mean sacrificing privacy, which is why it’s critical Groupon gets this right. Groupon may be collecting personal information such as phone numbers, emails and location data from mobile devices. This type of sensitive data, especially if it belongs to children and teens, requires special protection. We must ensure that consumer information is safeguarded, with clear, distinct permissions and the ability for customers to ‘opt-in’ before their information is shared with third parties.”
 
In the letter, Reps. Barton and Markey asked Groupon to respond to questions that include:

• Is Groupon willing to allow consumers to “opt-in” to all tracking methods the company may use when conducting business? If not, why not?
• What service providers does Groupon use and has there been any instances of a breach in consumer’s personal information during Groupon’s tenure of business with them?
• What mechanisms does Groupon have in place to identify the age of its consumers?
• Are Groupon merchants, business partners, and service providers required to adhere to your company’s privacy policies?

 
A full copy of the letter can be found HERE .
 
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