QuestionQ202

The U.S. Privacy Environment

Chanel Hair Studio is a busy, high-end hair salon. To maximize operational efficiency and reduce appointment wait times, Chanel decides to implement artificial-intelligence software that will use client profiles and histories to predict which clients are likely to arrive late for appointments. Information used to build each client profile includes appointment history, distance from the salon, and any references to tardiness drawn from the client’s social-media accounts. If a client is predicted to be late, the appointment will be cancelled within 5 minutes.

Based on these details, what is the biggest potential privacy concern associated with Chanel’s use of this new software?

  • A Scanning a client’s social media accounts to use in a client profile without notice to the client.
  • B Calculating client profile address distance from the salon to determine location from salon to help predict if the client will be late.
  • C Using client profile information for any purpose other than setting up an appointment.
  • D Assessing client tardiness history with the salon for predictive purposes.
Explanation

Collecting and using social-media information to create a behavioral profile without notice is a significant transparency and privacy concern, particularly because this collection is not apparent from the ordinary appointment relationship. Privacy guidance emphasizes clear notice for personal-information collection and use that consumers would not reasonably expect.

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