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ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology

Verano Retail uses in-store beacons that detect shoppers' phones and send personalised offers. Management is concerned about customer reaction. Which action best addresses the ethical and governance issue raised?

Verano should adopt transparent, consent-based data practices, telling customers what is collected and why and letting them opt out. This respects privacy, supports trust and reduces legal and reputational risk, whereas covert collection, hoarding data or assuming public signals need no consent would be unethical or non-compliant.

  1. ACollect data covertly to avoid customers changing their behaviour
  2. BAdopt transparent consent-based data practices, explaining what is collected and why, and allowing customers to opt outCorrect
  3. CStop analysing the data but continue collecting it for possible later use
  4. DRely on the fact that phone signals are publicly broadcast, so no consent is needed

Explanation

Tracking individuals raises privacy and trust concerns and regulatory duties. Transparency, consent and opt-out respect stakeholders and reduce legal and reputational risk. Covert collection is unethical, hoarding unused data adds risk, and the technical visibility of a signal does not remove obligations.

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