Legal, Ethical, and Security Concerns in Kudler's Frequent Shoppers Program

Legal, Ethical, and Security Concerns for the upcoming Frequent Shoppers Program

Kudler Fine Foods is a food chain that sells specialty items. They are located in the San Diego Metro area and have three locations. Kudler Fine Foods specializes in high-end grocery items from both imported and domestic suppliers. They are well known for their fresh baked pastries, specialty dairy selection, a large cheese selection, and other products. Kudler's number one priority is customer service. Kudler Fine Foods is hoping to improve its sales by becoming more efficient in its day to day operations. They want to increase the purchase cycle of their consumers by expanding their business through E-Commerce and develop a Frequent Shopper Program. Kudler's policy has always been to have enough inventories to make certain that they do not run out of stock. Keeping inventories high has become costly to Kudler's. By implementing the frequent shopper program they hope to be able to fix this problem and any other problems while making the shopping experience a better one for their customers. Programs like this can have security, legal, and ethical concerns. This paper will look into these concerns making sure that the frequent shopper program will be worth all the problems that can come with it.

The Frequent Shopper Program

Many large retailers have implemented some type of Frequent Shopper Program. This type of program has become very popular in retail stores because of the boost it gives to sales. Kudler Fine Foods would also like to develop the same program for the E-Commerce. This program will enable Kudler Fine Foods to keep track of the items that are purchased by each customer. This will give Kudler Fine Foods the opportunity to offer each of these customers a way that they can save money but still purchase their favorite products.

Implementing a program like this means that there will be several steps that will have to be followed. Kudler's will need to have a sale system installed that will allow Kudler's to keep track of the customers shopping activity and a data base to store the history of the customers purchases. They will need to provide some type of discount for frequent shopping. The communications between the POS systems will also need to be modified.

Legal Considerations

There are several rules and regulations that have been established by the government for companies that do business on line.

In the E-commerce there are several Legal Considerations which are below:

* An opt-in consent procedure is required for making commercial emails and e-commerce.

* Organizations are required to provide information to the recipient for online service to meet E-Commerce Regulations, before any type of business can be done online.

* Businesses have to make all their strategies for advertising and promotions according to the E-Commerce Regulations guidelines before they release a Frequent Shopper Program to the public.

* For online business transactions Electronic contracts can be signed electronically. However, the business organizations are required to have a physical signature for the approval of an online order.

* Because of the E-Commerce the businesses have to consider the tax laws of the Country they are in. The reason is that tax laws are different in every country.

* All of the online shoppers need to be given a copy of all the conditions and terms.

Ethical Considerations of Frequent Shopper Program

There are many ethical considerations that need to be measured by Kudler Fine Foods Stores that should be included in their frequent shopper program. Some of the ethical considerations are below:

* The customer has to give authorization before any of their personal information can be released.

* Kudler Fine Foods Stores will have an up to date online security program that will