Does Buying Groceries Online Put SNAP Participants at Risk? How to Protect Health, Privacy, and Equity AUTHORS: Jeff Chester, MSW Katharina Kopp, Phd Kathryn C
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Does buying groceries online put SNAP participants at risk? How to Protect Health, Privacy, and Equity AUTHORS: Jeff Chester, MSW Katharina Kopp, PhD Kathryn C. Montgomery, PhD JULY 2020 Does buying groceries online put SNAP participants at risk? How to Protect Health, Privacy, and Equity | 2 In April 2019, the United States Department are children.2 The economic impact of the continuing pandemic has already forced millions of Agriculture (USDA) Food and Nutrition of people into financial jeopardy, making the Service (FNS) announced the roll-out of a new program even more essential in the coming two-year online purchasing pilot, as part of its months and years, and intensifying longstanding policy battles over its future. Supplemental Nutrition Assistance Program (SNAP). The pilot, which was authorized in Because of widespread stay-at-home orders in response to the pandemic, many consumers the 2014 Farm Bill, is designed to enable SNAP have been turning to the internet in huge participants to take advantage of technological numbers for their basic food and other household needs, and to shield themselves from changes in shopping and e-commerce, allowing exposure.6 Even before the current health crisis, them to pay for their groceries online with shopping and paying for products exclusively their electronic benefit transfer (EBT) cards through the internet—known as e-commerce— were already becoming routine activities for a (the contemporary version of what used to be growing number of individuals and families. known as “food stamps”). SNAP at a Glance Though the USDA does not allow EBT cards to cover the costs of home delivery, some large For decades, SNAP has been the retailers are offering this service for free; others nation’s “first line of defense against enable consumers to buy online and pick up at hunger,” serving low-income families curbside without having to enter the store. The who need food assistance.3 In fiscal online pilot initially started in New York state, year 2018, over 81.4 percent of SNAP but quickly evolved to include several dozen households had gross incomes at or states and the District of Columbia. Expansion below the poverty line. Forty-one percent of the pilot has accelerated in the midst of the of SNAP benefits went to households Covid-19 pandemic, and it is now available, at with children, 21 percent to households last count, in 37 states. There is rising pressure at with disabled persons, and 26 percent to the state and national levels to extend the online households with senior citizens. Whites ordering program to all SNAP participants, and make up 35.7 percent of SNAP participants, to subsidize the cost of home delivery.1 while 25.1 percent are African American, 16.7 percent Hispanic, 3 percent Asian, For decades, the Supplemental Nutrition and 1.5 percent Native American (with 17.4 Assistance Program has been the nation’s “first percent of respondent’s race unknown).4 line of defense against hunger,” serving families Research shows that SNAP reduces poverty with low incomes who need food assistance. and food insecurity, and that over the long Prior to the start of the current health crisis, term, these impacts lead to improved health SNAP helped to feed approximately 40 million and economic outcomes, especially for Americans each month, 44 percent of whom those who receive SNAP as children.5 Does buying groceries online put SNAP participants at risk? How to Protect Health, Privacy, and Equity | 3 Today, people can buy nearly anything they People who need government food assistance want through their home computer or their should be given access to the same kinds of mobile phone and have it delivered directly to online services that others in our country are them, even the same day. 7 using to feed their families without having to increase their risks of becoming ill. The SNAP Online purchasing via the EBT card could be a online purchasing program could be a vital tool very positive development for SNAP participants. for achieving that goal. However, as this report In its initial announcement of plans for the new will show, it could also expose participants program, the USDA touted the public health to increased data collection and surveillance, benefits, explaining that it “could improve a flood of intrusive and manipulative online access to healthy food for those living in food marketing techniques, and pervasive promotion deserts—areas with sparse options to buy healthy of unhealthy foods. While all U.S. consumers groceries—or for those who are unable to who use online ordering services face many of physically shop on their own due to a disability these risks, SNAP participants are likely to be or transportation barrier,” and proclaiming that disproportionately harmed by them. with the new system, “Healthful Foods Could Be Just a Click Away.”8 Limited availability of fresh In the following pages, we present the results food is a serious problem that primarily affects of our research on the eight retail companies low-income communities and communities chosen to participate in the SNAP online of color in inner-cities, rural areas, and some purchasing pilot as of May 2019.17 Our study older suburbs.9 And this lack of access is one reveals that the companies in the initial pilot of the factors that has led to the alarming rates program are deploying a broad spectrum of data- of overweight and obesity among many of driven targeting and e-commerce practices that these populations.10 (See Sidebar: The Obesity are at the center of today’s digital marketplace. Epidemic Threatens Communities of Color and The entire e-commerce system has evolved Low-Income Groups.) in a largely unregulated environment, where The Obesity Epidemic Threatens Communities of Color and Low-Income Groups The USDA’s online purchasing program is being launched 20.6 percent among 12- to 19-year-olds; for Hispanic and at a time when obesity rates in the U.S. continue to rise African-American youth, the rates are 25.8 percent and unabated. According to the Centers for Disease Control 22.0 percent respectively.13 One of the biggest contributors and Prevention (CDC), nearly 40 percent of adults are to this health crisis is the overconsumption of processed obese. Rates are even higher among low-income groups and foods, which have high levels of sugars, calories, and communities of color. These populations are at much greater fat, and which tend to be cheaper and heavily advertised. risk for serious illness, including Type 2 diabetes, high blood Research has repeatedly shown that marketing of these pressure, and heart disease, which are directly related to unhealthy products directly influences young peoples’ obesity.11 The CDC suggests a number of underlying factors food and beverage preferences, purchase requests, and that may explain these health disparities, including higher consumption.14 Even when controlling for weight, some rates of unemployment, lower high school graduation rates, studies have shown that people who consume processed greater levels of food insecurity, fewer opportunities for foods are at greater risk of developing Type 2 diabetes.15 physical activity, and targeted marketing of unhealthy foods.12 A recent report published in the New England Journal of There has also been a dramatic and disturbing rise in Medicine projected that by 2030, nearly half all adults in obesity among children and youth over the past several the U.S. will be obese, with substantially greater levels of decades. The prevalence of obesity is 13.9 percent among obesity and severe obesity among low-income populations 2- to 5-year-olds, 18.4 percent among 6- to 11-year-olds, and and communities of color.16 Does buying groceries online put SNAP participants at risk? How to Protect Health, Privacy, and Equity | 4 no federal or state policies provide adequate set of robust regulatory safeguards, industry protections for consumers. Neither the USDA, commitments, and ongoing accountability nor the companies in the pilot program, offer mechanisms to accompany the full sufficient protections to SNAP participants. implementation of the SNAP program across We explain how these practices may affect the the country. Finally, because shopping online is health of SNAP families. And we discuss the likely to become the “new normal” for everyone implications of our findings in the context of in the coming years, we argue for strong, the growing body of research on the impact of comprehensive government policies to ensure Big Data on discrimination, equity, and social privacy, security, fairness and equity for all U.S. justice. We offer our recommendations for a consumers in the Big Data era. SHOPPING FOR FOOD IN THE ONLINE RETAIL SURVEILLANCE SYSTEM The SNAP online purchasing pilot is being using the latest advances in data analytics, launched at a time of dramatic technological behavioral science, and communication changes in the grocery and retail industries. technologies, and combining them with new The phenomenal success of Amazon as a leader methods of persuasion to influence consumers’ in online shopping has triggered a growing purchasing decisions. They are also forging migration of major retailers into the e-commerce powerful partnerships among social media business. Walmart reported a 43 percent growth and other online platforms, publishers, food in its online retail operations in the 4th quarter manufacturers, retail companies, and others. of 2019, with grocery shopping at the heart of The leading food and beverage brands— this trend.18 Retailers and grocery brands are also including Mondelez, Pepsi, Coca-Cola and investing heavily in digitizing store operations, Unilever—have all established their own in- the supply chain, merchandising, and the back house Big Data operations.21 office. They are expanding their data operations, developing new data-driven applications, and The longstanding enterprise of multicultural turning to online and mobile marketing to marketing has also swiftly moved into the Big boost sales.