Consumer_Action_Taskforce

Chase Bank: Difference between revisions

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| Official Website = https://chase.com/
| Official Website = https://chase.com/
| Logo = CHASE.png
| Logo = CHASE.png
}}
}}'''[[wikipedia:Chase_Bank|Chase Bank]]''' is one of the leading financial services providers in the United States, as indicated by the following quote. <blockquote>Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone.<ref name=":0">{{Cite web |date=3 Apr 2024 |title=Chase Launches Chase Media Solutions, a New Digital Media Business, Connecting 80 Million U.S. Consumers with the Brands They Love |url=https://media.chase.com/news/chase-launches-chase-media-solutions |url-status=live |archive-url=https://web.archive.org/web/20250129165337/https://media.chase.com/news/chase-launches-chase-media-solutions |archive-date=29 Jan 2025 |website=Chase Bank}} </ref></blockquote>


=Chase Bank uses financial history for targeted advertisements=
== Consumer impact summary ==
{{Placeholder box|Overview of concerns that arise from the company's conduct regarding (if applicable):
* User Freedom
* User Privacy
* Business Model
* Market Control}}


==Background==
== Incidents ==
<blockquote>"Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone."<ref>https://media.chase.com/news/chase-launches-chase-media-solutions</ref></blockquote>As a leading financial services provider, [[wikipedia:Chase_Bank|'''Chase Bank''']] has a responsibility to protect its customers' trust and privacy. However, the bank has compromised that trust by allowing advertisers access to customers' private spending data for targeted advertisements.


==Chase Media Solutions incident==
=== Chase Media Solutions incident ===
Following the acquisition of ''Figg'', a card-linked marketing platform<ref>https://web.archive.org/web/20241203061445/https://www.gofigg.com/</ref> in 2022, Chase launched "Chase Media Solutions" on April 3rd, 2024. This platform was marketed as a new digital media business that would provide brands with direct access to Chase's 80 million customers. The service was sold to investors as a new frontier of advertising, based on claims that partner companies would have the ability to use Chase's first-party transaction data to target deals and advertisements to customers based on their purchase history.<ref>https://media.chase.com/news/chase-launches-chase-media-solutions</ref>
Following the acquisition of ''Figg'', a card-linked marketing platform<ref>{{Cite web |title=figg is now Chase Media Solutions |url=https://www.gofigg.com/ |url-status=live |archive-url=https://web.archive.org/web/20241203061445/https://www.gofigg.com/ |archive-date=2024-12-03}}</ref> in 2022, Chase launched "Chase Media Solutions" on April 3, 2024. This platform was marketed as a new digital media business that would provide brands with direct access to Chase's 80 million customers. The service was sold to investors as a new frontier of advertising, based on claims that partner companies would have the ability to use Chase's first-party transaction data to target deals and advertisements to customers based on their purchase history.<ref name=":0" />


===Implementation===
==== Implementation ====
The program operates through several key mechanisms:
The program operates through several key mechanisms:


*Chase uses its "owned transaction data" to allow brands to target customers based on their spending patterns.
*Chase utilizes its 'owned transaction data' to enable brands to target customers based on their spending patterns.<ref name=":0" />
*Advertisers can specifically target new, lapsed, or loyal customers.
*Advertisers can specifically target new, lapsed, or loyal customers.
*Targeted offers appear directly in customers' Chase mobile app and website.
*Targeted offers appear directly in customers' Chase mobile app and on the Chase website.
*The bank charges merchants a fee when customers use deals from the platform.
*The bank charges merchants a fee when customers redeem deals through the platform.
*Chase claims to keep customer data within their "highly secure environment" while still allowing precise targeting.
*Chase claims to keep customer data within their 'highly secure environment' while still allowing precise targeting.


===Pilot program results===
==== Pilot program results ====
To test the service, Chase worked with several major brands:
To test the service, Chase collaborated with several major brands:
*Air Canada
*Air Canada<ref>{{Cite web |date=3 Apr 2024 |title=Air Canada partnership: Air Canada’s ticket sales take flight |url=https://www.chase.com/mediasolutions/resources/aircanada |website=Chase Media Solutions}}</ref>
*Solo Stove
*Solo Stove<ref>{{Cite web |date=3 Apr 2024 |title=Solo Stove partnership: Solo Stove fires up sales with Chase customers |url=https://www.chase.com/mediasolutions/resources/solostove |website=Chase Media Solutions}}</ref>
*Blue Bottle
*Blue Bottle<ref>{{Cite web |date=7 Jun 2024 |title=Blue Bottle partnership: Serving up higher AOV at Blue Bottle Coffee |url=https://www.chase.com/mediasolutions/resources/bluebottlecoffee |website=Chase Media Solutions}}</ref>
*Whataburger
*Whataburger<ref>{{Cite web |date=17 Jun 2024 |title=Whataburger partnership: What a month at Whataburger |url=https://www.chase.com/mediasolutions/resources/whataburger |website=Chase Media Solutions}}</ref>


During the initial pilot, Air Canada reported a lot of success, with their campaign exceeding expectations through two offer structures that drove considerable revenue & awareness among Chase cardmembers.<ref>https://www.pcmag.com/news/chase-bank-to-let-advertisers-target-customers-based-on-spending-habits</ref>
During the initial pilot, Air Canada reported significant success, with their campaign exceeding expectations through two offer structures that drove considerable revenue and awareness among Chase cardmembers.<ref>{{Cite web |last=Kan |first=Michael |date=4 Apr 2024 |title=Chase Bank to Let Advertisers Target Customers Based on Spending Habits |url=https://www.pcmag.com/news/chase-bank-to-let-advertisers-target-customers-based-on-spending-habits |url-status=live |archive-url=https://web.archive.org/web/20250129165726/https://www.pcmag.com/news/chase-bank-to-let-advertisers-target-customers-based-on-spending-habits |archive-date=29 Jan 2025 |website=PC Magazine}}</ref>


===Chase's defense===
==== Chase's defense ====
Chase has attempted to justify the program through several claims:
Chase has attempted to justify the program through several claims:
*The bank maintains that customer data remains within their secure environment.
*Customer data remains within a secure environment.
*They state they do not share personally identifiable information with brands.
*Personally identifiable information is not shared with brands.
*The company frames the program as a benefit to customers through cashback offers and personalized deals.
*The program is framed as a benefit to customers, offering cashback rewards and personalized deals.<ref name=":0" />
*Chase emphasizes their status as a "highly regulated company" as a defense for their data practices.
*Data practices are defended by emphasizing compliance as a "highly regulated company".


===Reception===
==== Reception ====
This decision has come with significant consumer backlash, with multiple concerns raised:
This decision has sparked significant consumer backlash, with multiple concerns raised:
*Customers complain there is no way to opt out of their data being used for these purposes.
*Customers report there is no way to opt out of having their data used for these purposes.<ref name=":1" />
*Privacy advocates express concern about the bank monetizing personal financial data.
*Privacy advocates have raised concerns about the bank monetizing personal financial data.
*Critics argue this represents a violation of consumer privacy and shows the bank's lack of transparency.
*Critics argue that this represents a violation of consumer privacy and highlights the bank's lack of transparency.
*Social media responses indicate customer discomfort with the program.
*Social media responses reflect widespread customer discomfort with the program.
*Users question whether their banking data should be used for advertising purposes.<ref>https://www.the-sun.com/money/10998718/chase-bank-media-solutions-brand-advertising-purchase-data/</ref>
*Users are questioning whether their banking data should be leveraged for advertising purposes.<ref name=":1">{{Cite web |title=CHASED AWAY ‘Can we opt out?’ beg Chase customers as bank makes major change targeting 80 million Americans with new ads |url=https://www.the-sun.com/money/10998718/chase-bank-media-solutions-brand-advertising-purchase-data/ |url-status=live |archive-url=https://web.archive.org/web/20250129165927/https://www.the-sun.com/money/10998718/chase-bank-media-solutions-brand-advertising-purchase-data/ |archive-date=29 Jan 2025 |website=The U.S. Sun}}</ref>


==Broader implications==
==== Broader implications ====
This incident represents several concerning trends in modern consumer exploitation:
This incident highlights several concerning trends in modern consumer exploitation:
 
'''Data Privacy Issues:'''


===Data privacy issues===
*Large corporations mask their data collection agreements in lengthy privacy policies.
*Large corporations mask their data collection agreements in lengthy privacy policies.
*Financial institutions leverage their unique access to sensitive customer data.
*Financial institutions leverage their unique access to sensitive customer data.
*Companies provide no way or no easy way to opt out of data collection.
*Companies provide no way—or no easy way—to opt out of data collection.
*Personal financial information is being monetized without clear consumer consent.
*Personal financial information is being monetized without clear consumer consent.


===Consumer rights concerns===
'''Consumer Rights Concerns:'''
 
*Customers lose control over how their transaction data is used.
*Customers lose control over how their transaction data is used.
*The program was implemented without clear opt-out mechanisms.
*The program was implemented without clear opt-out mechanisms.
*Existing customers are affected by significant changes to data usage policies without meaningful communication commensurate with the severity of the policy change & invasion of privacy.
*Existing customers are affected by significant changes to data usage policies without meaningful communication commensurate with the severity of the policy change and invasion of privacy.
*The practice represents a shift in how financial institutions monetize customer information.
*The practice represents a shift in how financial institutions monetize customer information.


===Industry implications===
'''Industry Implications:'''
*Sets a precedent for other financial institutions to monetize customer data - if one of the world's largest banks can do it, it incentivizes others.
 
*Blurs the line between banking services & advertising platforms.
*Sets a precedent for other financial institutions to monetize customer data: if one of the world's largest banks can do it, it incentivizes others.
*Blurs the line between banking services and advertising platforms.
*Raises questions about the proper use of financial transaction data.
*Raises questions about the proper use of financial transaction data.
*Demonstrates how "legal" practices can still violate consumer privacy expectations.
*Demonstrates how "legal" practices can still violate consumer privacy expectations.
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==References==
==References==
<references />
<references />
 
[[Category:Chase Bank]]
[[Category:Data Collection]]
[[Category:Data collection]]
[[Category:Banks]]
[[Category:Articles based on videos]]
[[Category:Articles based on videos]]
Retrieved from "https://consumerrights.wiki/wiki/Chase_Bank"