Collected consumer data at risk of being identifiable: ACCC
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The news: Consumer data collected by companies including Experian, Nielsen and Quantium are increasingly at risk of being identifiable when combined with additional data points, a new report by the consumer regulator has found.
The context: Despite data firms' products and services not trafficking in personally identifiable data — information related to your name, age or address. Companies sell aggregated insights — they may inform a bank that 25% of 25-year-olds own their own car, rather than information on John Smith owning a car.
But the Australian Competition and Consumer Commission (ACCC) is concerned companies can identify and target vulnerable consumers when categorising and grouping individuals into segments such as "frequent gamblers," which the regulator is concerned "may be used to advertise gambling products to people who have a gambling addiction".
Planned changes to Australian privacy law, including the introduction of a ‘fair and reasonable’ test for the collection, use and disclosure of personal information, would help to even up an information imbalance the ACCC sees between how data companies collect consumer information and what individuals understand about that data collection practices.
The ACCC has also said a proposed introduction of a right for an individual to have any of their personal information erased would increase consumer choice in data management.
Draft privacy legislation is due in August.
The study has also raised competition concerns, with the ACCC reiterating its calls for new industry codes for the digital industry.
"Data firms have potential incentives to harm competition by placing contractual obligations in agreements with business customers or data suppliers that limits a competitor’s access to data. This may foreclose rivals, especially in industry sectors where only a small number of data firms offer services," the regulator said.
The report could be a shot in the arm for planned changes to Australia's merger system. The regulator says deals in the industry are extensive and while they allow a company to build a portfolio of products and services, deals can incentivise companies to put in place restrictions that limit others' access to data.
This could cause rivals to foreclose in industries where only a small number of data firms offer services, the report said.
What they said: ACCC deputy chair Catriona Lowe said: "As consumers are increasingly required to provide personal information or other data on themselves to access important services, such as applying for a rental property or receiving an insurance quote, we are very concerned that consumers may be unable to exercise choice or meaningful control over how their data is shared and used".
The source: ACCC
