Companies put on notice over loyalty programs
The consumer regulator has put businesses on notice over loyalty programs that have misled consumers about the ease of redeeming points and how their data is sold.
According to the Australian Competition and Consumer Commission almost 9 out of 10 people are members of a customer loyalty program.
They found that loyalty schemes can access detailed data to build up a consumers’ profile and sell that information to third parties.
ACCC chairman Rod Sims tells John Stanley people have the right to know what their data is being used for.
“They’re collecting data from you, and quite detailed data, now some people don’t mind, some people mind a lot.
“But the bigger issue is what are they doing with the data, who are they forwarding it to, who are they providing it too?
“I just think consumers aren’t aware of this and I think they should be.”
Click PLAY to hear the full interview