A shopping center installs beacons to monitor footfall across the large area of the center. These can track mobile phones using anonymous detection of Wi-Fi signals. Shoppers can log onto the Wi-Fi from their smartphone, and get free internet access. The webpage offers an 'opt-out' check-box. If the customer does not check the box (usually they are in a hurry to get onto the internet and move past this quickly), they have accepted being tracked by the center, becoming identifiable on return visits and consenting for the center to sell their data. Over time the center acquires a considerable volume of data and uses analytics to determine which customers visit which stores, footfall of returning customers versus first-timers and time spent in different parts of the center. It starts a paid-for service to retailers in the center who use this data to send targeted advertisements to the shopper's mobile. As the volume of advertisements sent rises, a privacy group finds out about this. It highlights the approach in a leading local newspaper and suggests boycotting the center until the use of data is made more transparent.

Read the following short case scenario and post a response to the following questions:

1) What is the ethical situation?

2) What action would you take as management on the situation? Would it be satisfactory if you were the shopper?

3) What could have been done to prevent the negative backlash?