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Verizon launches reward program with a catch, users have to say yes to being tracked

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Verizon Wireless is launching a nationwide loyalty program for its over 100 million users. But there is a catch. Subscribers must allow the company to track their whereabouts so Verizon can target advertisements based on their interests.

Verizon is the first carrier to offer a rewards program and initially launched it quietly in a number of states. It's now a nationwide program.

Users earn points for every dollar they spend with the company for their wireless service. These points can then be used for a number of options, including upgrading to a new smartphone, but also the points can be put toward hotel rooms, car rentals or other products that Verizon carries.

It is called Smart Rewards and the company says it has already helped in retaining customers.

According to a press statement, the rewards program will be available for all users who currently have a postpaid account, "and customers who sign up for Smart Rewards will find at least 10,000 points waiting for them when they register."

Generating points should be easy, as Verizon given points can be had for paying the monthly bill, making other transactions using Verizon's Trade In program or choosing paperless billing.

"Discounts on Verizon-specific products along with gift cards for Verizon merchandise, and opportunities to win NFL game tickets will also be available as part of the Smart Rewards program. And points can be used for even greater discounts through daily deals, as well as auctions and sweepstakes, with new offers posted to the Smart Rewards catalogue every day," said the company.

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