Boots the chemist has been accused of employing "Big Brother" marketing tactics following the announcement that it would install 350 interactive video terminals into its UK shops as part of its Advantage customer loyalty scheme.

Its competitors, Waitrose, reacted to the scheme by saying that Boots was simply building up a "sinister database" on the lifestyles of its customers.

Customers will be able to log on to the terminals with their Advantage card. Thanks to the loyalty scheme introduced in 1997, the company already knows what products and brands each consumer buys and the computer will give special discounts and offers based on these known preferences.

According to Boots, the scheme is the biggest of its kind in the world and "it will take relationship marketing in to a new league".

Boots reacted to the Big Brother accusation by suggesting that in the old days store managers used to know what their customers bought and that Boots was replacing old-fashioned customer service with the latest technology.

Boots has 29 stores in Ireland and has as yet no plans to introduce the loyalty scheme here.