Sen Schumer demands suspension of phone-tracking system

After a shopping binge at Macy's, is a mallgoer more likely to refuel at Cinnabon or Cold Stone Creamery -- or both? If the latter, will said customer then head to Brookstone to recover in a massaging chair, or will he make a beeline to the mall's first aid station?

Malls and retailers had hoped to start gleaning information about shoppers' movement by discretely tracking them through their mobile devices -- but their plans are now on hold after a U.S. senator raised privacy concerns about the practice. The value of this technology is evident: Retailers can use that data to better understand shopping patterns, which in theory means they can make improvements based on their finding to enhance the customer experience while boosting sales. Inevitably, though, it raises the question as to whether this type of system represents an invasion of privacy or a potential security risk for mobile device users. Sen Charles Schumer raised the privacy flag after reports emerged last week about malls and retailers rolling out a tracking system from Path Intelligence, based in the United Kingdom. Two malls -- Promenade Temecula in southern California and Short Pump Town Center in Richmond, Va. -- had announced plans to test Path Intelligence's FootPath Technology system through the end of the year, whereas Home Depot and JC Penney were reportedly considering the system as well. According to The Register, the mall owners suspended deployment of FootPath after receiving letters from Schumer over the weekend.