Australia: ACCC calls for Privacy Act changes to protect loyalty scheme customers

Australia: ACCC calls for Privacy Act changes to protect loyalty scheme customers

The Australian Competition and Consumer Commission (ACCC) has recommended for loyalty schemes run by the likes of Telstra and the big four banks to improve data practices in its final report into customer loyalty schemes.


In calling for broader changes to be made to consumer and privacy laws, the ACCC's final report [PDF] has put forward five main recommendations to address its concerns around how existing loyalty schemes do not present terms, conditions, and privacy policies in a way consumers can easily understand; and are collecting, using, and disclosing consumer data in ways that does not align with consumer preferences, including providing limited insight and control over the sharing of their data with unknown third parties.


Another major concern outlined in the report was around how loyalty schemes are automatically linking members' payment cards to their loyalty scheme profiles to track purchasing behaviours even if members do not actively scan their loyalty cards.


"Many consumers are increasingly concerned about receiving targeted advertising, in some cases from companies that they have never dealt with before," ACCC chair Rod Sims said.


"There is also an emerging risk of real consumer harm if individual consumers were to be charged inflated prices based on profiling derived from their data. For example, if a person's frequent flyer data or online search history indicates they can only travel on certain dates, or otherwise based on their income, geographic location or other information collected through the loyalty scheme they may be charged extra."




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