Some apps that help consumers save money remain a source of mystery.
Where does the data they collect go? Who actually benefits?
Many of these apps, like Checkout51, Caddle, Drop, and Eclipsa, derive revenue from retailers and brands that want to boost sales, reward customers, and learn more about branch demographics. “Subscribers” can submit receipts, click on credit card links, or complete a survey. This allows applications to meet the demands of their clients.
The information the apps get is of great value to Canadian manufacturers, says Ransom Hawley, who launched Caddle, a cashback app, seven years ago.
“It’s very difficult for me to get good data and up-to-date Canadian information,” he says. Imagine presenting an overview based on six months of data from the United States to Walmart Canada. They will laugh at me. »
Hawley acknowledges hearing about “bad actors” misusing data. However, he assures that his company is upfront about its policies as soon as a consumer signs up for the app.
“There’s a clear notice that says, ‘this is how we’re going to use your data.’ It is not written in fine print and hidden in a multitude of legal clauses. »
People form a misconception about companies that harvest data to sell to customers, he adds. They do not submit consumers’ names or other identifying information.
“Companies like Walmart or Nestlé don’t want identifiable data because it would make them liable. The vast majority of data we sell is aggregated and de-identified. »
De-identifying data consists of removing anything that could link it to a particular individual through a technical process, explains Amran Ahmad, of the law firm Norton Rose Fulbright Canada.
Do not confuse de-identified data with de-identified data. These omit a person’s name, but include other details, such as address or date of birth.
It is the responsibility of applications to handle data securely and to be upfront about how the information will be used. Most of these companies are reliable, says Ahmad.
“Very indiscreet” apps
Bon Fay, managing director of the digital economy at the Center for International Governance Innovation, has studied many applications. He refuses to register, because the information obtained is “very indiscreet”.
“The purposes for which this information is used are not very specific,” he says. The only thing that is clear is that they sell them. The old adage that nothing is free, especially money in the case of these apps, is true. »
Mr Fay worries that people “don’t fully understand what they are giving in to these apps”. However, a recent survey by Drop, an app that offers points in exchange for access to credit card purchases and survey responses, suggests that people don’t really care.
For example, 70% of its members who responded to a recent survey said they were not concerned about what happened to the data. Almost one in four respondents were only “slightly concerned”. Only 2% were worried about it.
This does not prevent Mr. Ahmad from issuing a warning.
“People need to know that when they give something, they can get something else in return. Receiving something doesn’t mean you don’t have to give something away. Everything that is free requires consideration. People need to know that. »