12/07/2017
Are you considering going cashless? If so, please read below from the Vice-president of the Illinois Retail Merchants Association, as it will affect your business:
Please note that yesterday the Committee on License and Consumer Protection held a hearing on Ald. Burke’s and Ald. Burnett’s proposal to prohibit businesses from accepting cards only. There are a handful of restaurants and just a few retailers that, over the last couple of years, have discontinued accepting cash as payment for goods/services. Customers must either pay with a credit/debit card, store loyalty card or app. The sponsors make the argument that such a practice is discriminatory against the unbanked/underbanked, persons under age 18, the elderly, the undocumented and the homeless, all of whom have trouble getting bank accounts and credit cards. In addition, they claim that going cash-free is really just a ruse for the credit card companies to access more personal information from customers in order to market to them, get them to overspend and accumulate debt. Lastly, they claim that the collection and selling/sharing of this personal information puts customers at risk as companies are not taking necessary steps to adequately protect their customers from data breaches. Representatives from the Woodstock Institute, a local tech company, a consumer advocate organization and a local college professor who is also employed by the Edelson law firm testified in support. Many of you will recall that the Edelson law firm has been very active in suing tech companies for alleged violations of data privacy laws.
IRMA was part of a coalition that testified in opposition. No vote was taken as the sponsors agreed that there needs to be more discussion first. That said, you should be aware that if you are considering going cashless, or if you have already gone cashless, there is support in the Council to bar you from doing so. We will be working to educate Aldermen about data privacy, as I believe that ultimately, this issue is meant to garner support for the city to have its own data privacy law along with its own regulations. If you are interested in accompanying me to meetings regarding data privacy in Chicago, please let me know. We will begin scheduling those meetings for much of January and February, but I think it is important to meet with both Chairman Burke and Ald. Burnett before the end of the year to give them an overview of what the retail industry is doing with data and the great lengths it goes through to protect data.
