Businesses Discouraged From Using Drivers’ Licences as ID
One thing that all retail establishments have in common is that they face the ongoing problem of combating return fraud.
This especially affects those businesses with extremely lenient return policies and whose inventory always changes or is priced differently from the manufacturer’s suggested retail price (MSRP). When inventory always changes, it is difficult to monitor what a store carries.
Retail stores often ask individuals making returns to show their drivers licence before processing. The drivers licence number and the full name of the customers making the return is then usually entered into a database. Customers who repeatedly make frivolous returns or who are suspected of frauding the store are often then denied the opportunity to make a return.
The privacy commissioners of Canada, Alberta, and British Columbia have recently discouraged the use of driver’s licences as identification. Since a driver’s licence number is unique and provides much personal information, it provides benefits for retail establishments who want to discourage fraudsters, but also opens another opportunity for identity thieves. After all, it’s a mystery what businesses really do with that information, where it is stored, how they secure the information and how and if they dispose of it properly.
How can retail establishments monitor those abusing their return system while at the same time respect the privacy of its customers?
Home Depot, a home improvement and retail store in Canada and the US, recently received pressure to change its practice of collecting driver’s licences by the Privacy Commissioner of Alberta. Since this sets a precedent, it will be interesting to see how this will apply across Canada and how Canadian businesses will respond.
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