Welcome back to Data Domains, our article series exploring how different industries approach data privacy. In case you’ve missed it, our first article took a closer look at the financial world’s unique data privacy challenges. 

This time, we're examining data privacy challenges in the retail world, an industry built on consumer connection, personalization, and massive amounts of third-party data exchange. 

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Too Many Cooks in the Data Kitchen

Retailers rely heavily on third-party vendors for marketing, payments, shipping, customer support, loyalty programs, and more. Research by Gartner finds that more than half rely on third-party software for their day-to-day retail operation management. But under regulations like GDPR and CPRA, using a vendor doesn’t outsource responsibility. Retailers are held accountable for how those vendors handle personal data, whether it’s accessed, shared, or breached. 

That means that every integration becomes a potential privacy risk. Did the loyalty program provider get proper consent? Is the shipping vendor storing data longer than needed? Are marketing partners enriching profiles in ways that violate user rights? Retailers must answer every single question correctly. 

Social media sharing is another practice that boosts sales but comes with significant risk. For example, research reveals that 25% of retail sites use the TikTok pixel, which already resulted in legal issues, and almost 60% implement the Meta pixel. The average retailer, according to this study, has no less than 24 different data tracking integrations. Once again, when we consider retailers’ responsibility for third-party data practices, this behavior becomes incredibly problematic. 

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Even within the organization, retail data often changes hands multiple times, each time adding a new “data controller” or “data processor” into the mix. The warehouse tracks delivery preferences, the CRM manages purchase history, the returns system handles refunds, and more.
Without coordination and proper audit capabilities, even basic moves like responding to a DSAR can turn into a logistical mess.

Retailers need tools that track where data exists and what it’s used for, streamlining compliance across a complex system. Mine’s platform helps retailers monitor data access, map relationships across vendors and teams, and ensure that everyone follows the rules. Instead of chasing spreadsheets and contracts, retailers can see the full, updated picture in one place and act fast when something doesn’t add up.

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The Cost of Personalization

Personalization helps retailers suggest relevant items and boost sales. From product recommendations to remarketing, today’s shoppers expect brands to know them. But most of that magic relies on behavioral data, profiling, and real-time tracking - actions that data privacy regulation addresses for a reason. Laws require retailers to obtain consent, minimize data collection, and demonstrate their legitimate interest. 

With tools like ours, which visualize the entire data journey, retailers can finally understand what’s being collected and why to form personalization strategies that respect user rights without losing the competitive edge.

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Privacy in Aisle Five

Data privacy isn’t just an online concern, and with in-store shopping accounting for around 70% of sales, you can count on retailers to use technology in their physical locations as well. Today’s stores use tools that track purchasing history, update consumer profiles in real-time, send timely notifications, and more. 

While these tools promise better shopping experiences that drive profit, they also collect personal data, often passively and without direct user consent. Unlike a cookie banner on a website, customers don’t always know they’re being tracked in-store, and that lack of transparency can be a compliance risk that might slip under the radar until regulators notice it first.

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Underage Tracking

Retailers that cater to kids or teens, whether through fashion, gaming, or toys, must tread especially carefully when it comes to data privacy. Regulations like COPPA (in the U.S.) and age-appropriate design codes (such as the UK’s Children’s Code or California’s AADC) require special handling of children’s data, including strict consent rules and limits on behavioral tracking.

That creates both regulatory exposure and reputational risk. Retailers must conduct in-depth data audits based on predetermined rules that are easy to update according to the latest regulations. 

With personalized experiences, aggressive marketing strategies, and outsourced infrastructure, retailers need a smarter way to manage risk. Mine gives them the tools to stay competitive without compromising on trust, making protecting customers’ data as natural as recommending their next favorite product.

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