New report shows that 70% of Australians don’t feel in control of their data

Do consumers really know how companies, including data brokers, track, target, and profile them? New research shows that most Australians don’t understand or feel in control of their online data. The research report released by Consumer Policy Research Centre, a not-for-profit consumer think-tank, and UNSW Sydney focuses on consumer understanding of privacy terms, with many consumers expressing anger, frustration, and distrust.

This research arrives amidst crucial legislative considerations in Australia, with long-awaited reforms to privacy laws underway and the consumer watchdog’s March 2024 interim report addressing data brokers.

What data are companies tracking?

The truth of the matter is that consumers are being constantly tracked. This can be online and offline from a variety of sources, including data brokers.

Many businesses in Australia and around the world engage in extensive tracking and profiling, often leading consumers to perceive this as an invasion of their privacy. Companies utilize consumer data in various ways, such as adjusting prices, limiting access to better deals, targeting political messaging, or compiling profiles for potential employers, insurers, or landlords.

How much is data anonymized?

Privacy policies commonly refer to:

• anonymized data
• pseudonymized information
• hashed emails
• audience data
• aggregated information.

These are just some of the terms that companies use to argue that information is “de-identified” or not “personal”. This is to avoid running afoul of the federal Privacy Act in which these terms are defined. By using the terms above, privacy policies are muddying the waters. It creates the impression data can’t be used to single out the consumer, even when they potentially can.

In Australia, “anonymized data” lacks legal definition and may still contain identifiable elements. Data brokers can utilize such information to create comprehensive consumer profiles, which are then shared across businesses.

Data brokers and other companies can then use this “pseudonymized information” to create detailed profiles on consumers. This can then be matched with other information collected by various companies and shared with other businesses.

What did the Consumer Policy Research survey find?

The survey revealed that over 70% of Australians feel they have little to no control over how online businesses share their personal information. Additionally, most consumers lack comprehension of common privacy terms. They find it unacceptable for unrelated businesses to use their email, IP, device information, search history, or location data, unaware that data brokers and partners may already access these details.

How does Australia compare to the rest of the world?

The distrust towards data handling extends beyond Australia. Our Privacy beyond Borders report indicates similar sentiments worldwide. A vast majority of consumers (93%) express concerns about online data security, with an increasing number feeling uneasy about data privacy over the past year. Notably, 84% of respondents from the UK, US, and EU share Australians’ sentiments about insufficient control over personal data.

Where does this leave us?

The pervasive nature of data collection heightens Australians’ vulnerability, presenting them with a challenging dilemma: accept complex terms or forfeit access to services. This imbalance erodes the principle of informed consent, leaving individuals with limited control over their data.

This leaves consumers in a difficult position as they are often presented with a binary choice: either accept the terms and conditions without fully comprehending their implications or abstain from accessing the service altogether. This coercive dynamic undermines the principle of allowing informed consent, leaving individuals with little recourse to assert control over their data.

To address the concerns, policymakers must take center stage in implementing regulatory reforms that promote transparency, oversight, and digital literacy. Simultaneously, companies must prioritize user-friendly privacy policies and adhere to stringent data protection standards. Embedding trust into the customer journey is paramount. By leveraging a robust consent management platform, businesses can honor user preferences, forge enduring relationships, and ensure compliance. Establishing a clear consent process empowers companies to collect customer data responsibly, placing customers firmly in control of their information.

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