ABSTRACT
Loyalty schemes have become an established commercial feature in the grocery sectors of New Zealand and Australia. Ownership and operation of the schemes has recently undergone change but the essential features are likely to remain. However, there has been little scrutiny until recently of the implications for consumers of the use of personal information derived from the schemes as well as to who benefits from them. This article examines the data privacy practices of the major schemes, comparing them with similar arrangements existing in Australia, drawing on their website terms and privacy policies as well as critical scrutiny of them by the consumer and competition regulators in both countries. The article reveals an extensive data gathering and sharing ecosystem facilitated by the loyalty schemes involving many parties, including the grocery retailers but not limited to them. Significant legal and ethical issues are documented, including lack of clarity, manipulation of consumer behaviour and privacy risks from collection and profiling of individuals. Solutions through best practice are advanced through suggesting a code of practice aimed at the sector.
Sze, Tiffany and Gunasekara, Gehan, A Privacy Trojan Horse? Consumer Loyalty Programmes in the Grocery Sector and Data Privacy (March 31, 2025).
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