Privacy concerns grow among consumer as retailers shift to electronic receipts
- Replies 29
In an age where convenience often trumps caution, consumers looking to declutter and digitise their lives have mainly welcomed the shift from paper to electronic receipts.
However, this seemingly benign transition has raised red flags among privacy advocates, who are sounding the alarm over the potential misuse of personal information collected by retailers.
The days of leaving a store with a paper receipt are dwindling as more retailers encourage or even insist on sending electronic receipts.
While this modern method is touted as an eco-friendly alternative to the traditional paper slip, it comes with a catch:
Customers must often provide their email address or phone number to receive proof of purchase.
University of NSW law professor and data privacy researcher Katharine Kemp highlighted customers' discomfort when asked for personal information for a simple transaction.
‘In that situation, it's quite confronting to be asked for extra personal information when you're just buying something over the counter,’ she said.
Brian Walker, chief executive of Retail Doctor Group, points out that these databases are a business goldmine.
‘It's a rich environment for growing databases, and this is the asset retailers and all businesses are seeking because those databases ultimately represent future recurring income or a percentage of,’ he pointed out.
The data collected can be used for direct marketing, shared with other retailers, or even sold to data brokers.
However, this means your shopping habits, preferences, and personal details can be pieced together to create a comprehensive profile of you.
This information is valuable to various organisations and is often collected without the consumer's understanding of its implications.
Under Australian Consumer Law, retailers must provide a receipt for purchases over $75 immediately and within seven days for purchases under $75.
Importantly, this law stipulates that you are entitled to proof of transaction without surrendering personal details.
‘Without an email address or phone number, the only way must be via a paper receipt,’ Kemp exclaimed.
One such innovation is 1receipt, an app that allows shoppers to receive digital receipts without sharing personal information.
‘It's basically a unique digital receipt platform. So shoppers don't need to share their email, phone number, or any personal information with the retailers,’ 1receipt founder and chief executive Shahryar Faraji said.
Users simply download the app, have a retailer scan a barcode, and send the receipt directly to their device.
‘We're trying to put the privacy back into the user's hand with a receipt,’ he added.
While currently available at a limited number of retailers, the app's privacy-centric approach is gaining traction, with Coles set to join the platform in the coming month.
In related news, Australia produces 10.6 billion paper receipts yearly, mostly non-recyclable because they contain toxic chemicals.
A study from the University of Technology Sydney revealed the environmental toll of these receipts:
They contribute to 96,227 metric tonnes of carbon emissions, consume 150,462 trees, use 1.56 million litres of water, and require 104.7 million kilowatts annually. You can read more about it here.
Have you encountered any issues, or do you have tips for maintaining privacy? Share your stories in the comments below.
However, this seemingly benign transition has raised red flags among privacy advocates, who are sounding the alarm over the potential misuse of personal information collected by retailers.
The days of leaving a store with a paper receipt are dwindling as more retailers encourage or even insist on sending electronic receipts.
While this modern method is touted as an eco-friendly alternative to the traditional paper slip, it comes with a catch:
Customers must often provide their email address or phone number to receive proof of purchase.
Retailers are asking for more personal information for electronic receipts, raising privacy concerns among consumers and advocates. Credit: Shutterstock
University of NSW law professor and data privacy researcher Katharine Kemp highlighted customers' discomfort when asked for personal information for a simple transaction.
‘In that situation, it's quite confronting to be asked for extra personal information when you're just buying something over the counter,’ she said.
Brian Walker, chief executive of Retail Doctor Group, points out that these databases are a business goldmine.
‘It's a rich environment for growing databases, and this is the asset retailers and all businesses are seeking because those databases ultimately represent future recurring income or a percentage of,’ he pointed out.
The data collected can be used for direct marketing, shared with other retailers, or even sold to data brokers.
However, this means your shopping habits, preferences, and personal details can be pieced together to create a comprehensive profile of you.
This information is valuable to various organisations and is often collected without the consumer's understanding of its implications.
Under Australian Consumer Law, retailers must provide a receipt for purchases over $75 immediately and within seven days for purchases under $75.
Importantly, this law stipulates that you are entitled to proof of transaction without surrendering personal details.
‘Without an email address or phone number, the only way must be via a paper receipt,’ Kemp exclaimed.
One such innovation is 1receipt, an app that allows shoppers to receive digital receipts without sharing personal information.
‘It's basically a unique digital receipt platform. So shoppers don't need to share their email, phone number, or any personal information with the retailers,’ 1receipt founder and chief executive Shahryar Faraji said.
Users simply download the app, have a retailer scan a barcode, and send the receipt directly to their device.
‘We're trying to put the privacy back into the user's hand with a receipt,’ he added.
While currently available at a limited number of retailers, the app's privacy-centric approach is gaining traction, with Coles set to join the platform in the coming month.
In related news, Australia produces 10.6 billion paper receipts yearly, mostly non-recyclable because they contain toxic chemicals.
A study from the University of Technology Sydney revealed the environmental toll of these receipts:
They contribute to 96,227 metric tonnes of carbon emissions, consume 150,462 trees, use 1.56 million litres of water, and require 104.7 million kilowatts annually. You can read more about it here.
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