ACCC calls for Privacy Act changes to protect loyalty scheme customers

Australia is having a debate about the privacy implications of loyalty cards. I don’t have payment information linked to any of my loyalty schemes (mostly airlines and the ubiquitous Tesco ClubCard) but if I did, this is the kind of behaviour I’d expect…:

[…] 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.”


Original Article