Secret Consumer Scores and Segmentations: Separating Consumer 'Haves' from 'Have-Nots'

65 Pages Posted: 13 Jun 2015

See all articles by Amy J. Schmitz

Amy J. Schmitz

Ohio State University (OSU) - Michael E. Moritz College of Law; Cyberjustice Lab

Date Written: 2014


“Big Data” is big business. Data brokers profit by tracking consumers’ information and behavior both on- and offline and using this collected data to assign consumers evaluative scores and classify consumers into segments. Companies then use these consumer scores and segmentations for marketing and to determine what deals, offers, and remedies they provide to different individuals. These valuations and classifications are based on not only consumers’ financial histories and relevant interests, but also their race, gender, ZIP Code, social status, education, familial ties, and a wide range of additional data. Nonetheless, consumers are largely unaware of these scores and segmentations, and generally have no way to challenge their veracity because they usually fall outside the purview of the Fair Credit Reporting Act (FCRA). Moreover, companies’ use of these data devices may foster discrimination and augment preexisting power imbalances among consumers by funneling the best deals and remedies to the wealthiest and most sophisticated consumers. Use of these scores and segmentations increases the growing gap between powerful “haves” and vulnerable “have-nots.” This Article sheds light on these data devices and aims to spark adoption of data privacy regulations that protect all consumers regardless of their educational, economic, ethnic, or social status.

Keywords: contracts, consumer protection, e-contracts, consumer contracts, Big Data, data privacy, data protection, FCRA, debt, Fair Credit Reporting Act, discrimination, consumer rights, consumer law, privacy, marketing

JEL Classification: K12, K40, K41, K00, K29, K20, K30, K10, K39, M31, D11, O31, D40

Suggested Citation

Schmitz, Amy J., Secret Consumer Scores and Segmentations: Separating Consumer 'Haves' from 'Have-Nots' (2014). Michigan State Law Review, p. 1411, 2014, U of Colorado Law Legal Studies Research Paper No. 15-6, Available at SSRN:

Amy J. Schmitz (Contact Author)

Ohio State University (OSU) - Michael E. Moritz College of Law ( email )

55 West 12th Avenue
Columbus, OH 43210
United States

Cyberjustice Lab ( email )


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