The Times Australia
The Times World News

.
The Times Real Estate

.

ACCC says consumers need more choices about what online marketplaces are doing with their data

  • Written by Katharine Kemp, Senior Lecturer, Faculty of Law & Justice, UNSW, UNSW Sydney
ACCC says consumers need more choices about what online marketplaces are doing with their data

Consumers using online retail marketplaces such as eBay and Amazon “have little effective choice in the amount of data they share”, according to the latest report[1] of the Australian Competition & Consumer Commission (ACCC) Digital Platform Services Inquiry.

Consumers may benefit from personalisation and recommendations in these marketplaces based on their data, but many are in the dark about how much personal information these companies collect and share for other purposes.

ACCC chair Gina Cass-Gottlieb[2] said:

We believe consumers should be given more information about, and control over, how online marketplaces collect and use their data.

The report reiterates the ACCC’s earlier calls for amendments to the Australian Consumer Law to address unfair data terms and practices. It also points out that the government is considering proposals for major changes to privacy law[3].

However, none of these proposals is likely to come into effect in the near future. In the meantime, we should also consider whether practices such as obtaining information about users from third-party data brokers are fully compliant with existing privacy law.

Why did the ACCC examine online marketplaces?

The ACCC examined competition and consumer issues associated with “general online retail marketplaces” as part of its five-year Digital Platform Services Inquiry[4].

These marketplaces facilitate transactions between third-party sellers and consumers on a common platform. They do not include retailers that don’t operate marketplaces, such as Kmart, or platforms such as Gumtree that carry classified ads but don’t allow transactions.

The ACCC report focuses on the four largest online marketplaces in Australia: Amazon Australia, Catch, eBay Australia and Kogan. In 2020–21, these four carried sales totalling $8.4 billion.

Online marketplaces such as Amazon, eBay, Catch and Kogan facilitate transactions between third-party buyers and sellers. Shutterstock[5]

According to the report, eBay has the largest sales of these companies. Amazon Australia is the second-largest and the fastest-growing, with an 87% increase in sales over the past two years.

The ACCC examined:

  • the state of competition in the relevant markets
  • issues facing sellers who depend on selling their products through these marketplaces
  • consumer issues including concerns about personal information collection, use and sharing.

Consumers don’t want their data used for other purposes

The ACCC expressed concern that in online marketplaces, “the extent of data collection, use and disclosure … often does not align with consumer preferences”.

The Commission pointed to surveys about Australian consumer attitudes to privacy[6] which indicate:

  • 94% did not feel comfortable with how digital platforms including online marketplaces collect their personal information
  • 92% agreed that companies should only collect information they need for providing their product or service
  • 60% considered it very or somewhat unacceptable for their online behaviour to be monitored for targeted ads and offers.

Read more: How one simple rule change could curb online retailers' snooping on you[7]

However, the four online marketplaces analysed:

  • do not proactively present privacy terms to consumers “throughout the purchasing journey”
  • may allow advertisers or other third parties to place tracking cookies on users’ devices
  • do not clearly identify how consumers can opt out of cookies while still using the marketplace.

Some of the marketplaces also obtain extra data about individuals from third-party data brokers or advertisers.

The harms from increased tracking and profiling[8] of consumers include decreased privacy; manipulation based on detailed profiling of traits and weaknesses; and discrimination or exclusion from opportunities.

Limited choices: you can’t just ‘walk out of a store’

Some might argue that consumers must not actually care that much about privacy if they keep using these companies, but the choice is not so simple.

The ACCC notes the relevant privacy terms are often spread across multiple web pages and offered on a “take it or leave it” basis.

The terms also use “bundled consents”. This means that agreeing to the company using your data to fill your order, for example, may be bundled together with agreeing for the company to use your data for its separate advertising business.

Further, as my research has shown, there is so little competition on privacy[9] between these marketplaces that consumers can’t just find a better offer. The ACCC agrees:

While consumers in Australia can choose between a number of online marketplaces, the common approaches and practices of the major online marketplaces to data collection and use mean that consumers have little effective choice in the amount of data they share.

Consumers also seem unable to require these companies to delete their data. The situation is quite different from conventional retail interactions where a consumer can select “unsubscribe” or walk out of a store.

Does our privacy law currently permit all these practices?

The ACCC has reiterated its earlier calls to amend the Australian Consumer Law to prohibit unfair practices and make unfair contract terms illegal. (At present unfair contract terms are just void, or unenforceable.)

The report also points out that the government is considering proposals for major changes to privacy law, but these changes[10] are uncertain and may take more than a year to come into effect.

Read more: A new proposed privacy code promises tough rules and $10 million penalties for tech giants[11]

In the meantime, we should look more closely at the practices of these marketplaces under current privacy law.

For example, under the federal Privacy Act[12] the four marketplaces

must collect personal information about an individual only from the individual unless … it is unreasonable or impracticable to do so.

However, some online marketplaces[13] say they collect information about individual consumers’ interests and demographics from “data providers[14]” and other third parties[15].

We don’t know the full detail of what’s collected, but demographic information might include our age range, income, or family details.

How is it “unreasonable or impracticable” to obtain information about our demographics and interests directly from us? Consumers could ask online marketplaces this question, and complain to the Office of the Australian Information Commissioner[16] if there is no reasonable answer.

References

  1. ^ latest report (www.accc.gov.au)
  2. ^ ACCC chair Gina Cass-Gottlieb (www.accc.gov.au)
  3. ^ proposals for major changes to privacy law (www.ag.gov.au)
  4. ^ five-year Digital Platform Services Inquiry (www.accc.gov.au)
  5. ^ Shutterstock (www.shutterstock.com)
  6. ^ Australian consumer attitudes to privacy (www.accc.gov.au)
  7. ^ How one simple rule change could curb online retailers' snooping on you (theconversation.com)
  8. ^ harms from increased tracking and profiling (papers.ssrn.com)
  9. ^ so little competition on privacy (papers.ssrn.com)
  10. ^ these changes (theconversation.com)
  11. ^ A new proposed privacy code promises tough rules and $10 million penalties for tech giants (theconversation.com)
  12. ^ federal Privacy Act (www.legislation.gov.au)
  13. ^ some online marketplaces (papers.ssrn.com)
  14. ^ data providers (www.ebay.com.au)
  15. ^ other third parties (www.amazon.com.au)
  16. ^ Office of the Australian Information Commissioner (www.oaic.gov.au)

Read more https://theconversation.com/accc-says-consumers-need-more-choices-about-what-online-marketplaces-are-doing-with-their-data-182134

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping