ACCC: 74 percent “uncomfortable” with personal data collection

The Australian Competition and Consumer Commission (ACCC) has highlighted 74 percent of Australians are “uncomfortable” with the concept personal information is shared or sold with other companies.

As a result of “long and complex privacy policies that use ambiguous language or ‘take-it-or-leave-it’ terms” it is “difficult for consumers to understand, intentionally consent to and control what happens to their data,” the ACCC stated.

The ACCC released its eighth Digital Platform Services Inquiry report on Tuesday, which emphasised that consumers are mostly unaware of how much of their data is collected, used and shared with data firms and other businesses. 

In its latest report [pdf], the competition regulator pointed to the Consumer Policy Research Centre (CPRC) working paper findings, Not a fair trade: Consumer views on how businesses use their data [pdf].

The findings follow similar results from the Office of the Australian Information Commissioner (OAIC) back in August 2023, which revealed 58 percent of consumers stated they do not understand how their data is used.

ACCC deputy chair Catriona Lowe said, “Many consumers may be unaware of the scope of data that is collected and then shared or on-sold to other data firms or unidentified third parties. 

“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.”

Companies collect data from a wide range of online and offline sources and then use this to create and sell data services to business customers. 

This can cover personalised marketing and advertising, risk management plus property data and analytics services.

The ACCC said it's also concerned about the rising risk of ‘re-identified’ data being mixed with further data points. 

This could lead to demographics labelled as ‘frequent gamblers’ used to advertise gambling products to people who have a gambling addiction, the competition watchdog said. 

“Data is a critical commodity in today’s economy as it helps businesses create innovative products and tailor new services for consumers. Its importance will only increase with the rise of artificial intelligence,” Lowe said.

“This report shines a light on a relatively unknown part of the data ecosystem and examines the data products and services supplied by data firms.

"In many cases, the data firms do not have a direct relationship with the consumers whose data may be used,” Lowe added. 

Read up about the state of modern IT via our Cloud Covered report here.