The hidden way using a rewards card can cost you more

[Zorro]

Starbucks tracked my every purchase -- then gave me fewer deals. It’s called surveillance pricing.

Scanning a loyalty card might be costing you money.

Companies say they’re rewarding your devotion with points, discounts and perks. But behind the scenes, many are using these programs to monitor your behavior and build a profile — then charge you what they think you’ll pay.

I discovered evidence of this in my own Starbucks app. Using California’s privacy law, I asked the company to send me the data its rewards program had collected about me.

Then I shared that data with two former Federal Trade Commission officials who spent careers defending consumers. They spotted a startling pattern in the numbers: During months when I bought more coffee, the app offered me fewer promotions. Sure, I was still collecting “stars” I could use for freebies. But the more loyal I was, the fewer actual discounts I got.

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