Retail giant Walmart (WMT) could face privacy concerns after it introduced technology to detect criminals as they drive their car into the store parking lot.
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License Plate Cameras
According to a report in the U.S. Sun, shoppers entering a Walmart parking lot will be screened by an “automatic” anti-theft system on arrival. The Automated License Plate Reader or ALPR cameras have been installed near a store in Nevada as Walmart tries to help out authorities in the crackdown on crime.
The cameras capture license plates and vehicle information, which are then checked against law enforcement databases for links to criminal activity including Amber Alerts, Silver Alerts, stolen vehicles, missing persons cases and wanted suspects.
The authorities said the tech “helps officers quickly identify vehicles connected to crimes, improving response times and public safety.”
Concerns over Privacy
The Churchill County Sheriff’s Office said the systems did not impinge on shoppers’ privacy. It said that they “do not track individuals, access personal driver information, or monitor people beyond what is visible on a public roadway. The technology operates within established legal guidelines and is similar to what an officer can observe from a patrol vehicle.”
Walmart has also issued a privacy notice on ALPR on its website. It said: “Walmart utilizes Automated License Plate Readers (ALPR) to help ensure security, prevent theft and fraud, assist with parking enforcement, and to help maintain the safety of individuals and properties.” Walmart said that information collected through ALPR systems can be disclosed “when we believe doing so will help to protect the safety, property, or rights of individuals or Walmart.”
Potential Reputational Risk
“Walmart’s ALPR system is led by our Vice President, Chief Safety Officer. Only authorized associates are permitted to access ALPR systems, including asset protection and product management teams, as well as associates who manage our facilities. Associates must undergo training to ensure the responsible and ethical use of personal information, including ALPR data,” it said.
It is not clear how many of these ALPR systems are in place. But there will be concerns that the use of technology could hit the company’s hard-won and historic reputation for trust within local communities. It is why ‘Ability to Sell’, which incorporates brand reputation, is something WMT investors need to consider. See our Risk Analysis tool above.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 27 Buy and 2 Hold ratings. Its highest price target is $150. WMT stock’s consensus price target is $139.64, implying a 9.52% upside.
