Irish Loyalty Schemes: ICCL Questions Consent Amid Price Discrepancies and Data Concerns
The ICCL warns that large price differences for loyalty scheme members in Ireland may compromise consumer consent under GDPR, especially during the cost of living crisis. Supermarkets collect personal and shopping data through these free-to-join programs. Regulatory bodies are monitoring the situation, with the DPC set to publish a compliance report soon.
The Irish Council for Civil Liberties (ICCL) has raised concerns that significant price differences between loyalty scheme members and non-members may undermine genuine consent for joining these programs, especially during the cost of living crisis. For example, a 250ml Nivea children’s sunscreen cost €24 for non-members at a Dublin Tesco, but only €9 for Clubcard holders. Similarly, three jumbo packs of size 4 Pampers nappies were €30 for Supervalu Real Rewards members online, versus €16.50 per pack for non-members, a €19.50 saving.
Loyalty schemes are increasingly popular in Ireland, with a KPMG survey showing 62% of consumers now let them drive shopping choices, up from 57% last year. Most major Irish supermarkets, including Tesco, SuperValu, Dunnes, Lidl, and Centra, offer such programs. Membership is generally free but requires personal data like name, email, address, and phone number, and collects shopping habit information.
ICCL Senior Policy Officer Olga Cronin questions consent under GDPR, citing Article 4 of the EU Data Protection Directive, which requires consent to be freely given, specific, informed, and unambiguous. She argues that if consumers face detriment for not consenting, it compromises genuine consent, particularly for sensitive health-related purchases. The Competition and Consumer Protection Commission (CCPC) states there are no current laws restricting retailers from offering different prices but will monitor the schemes. The Data Protection Commission (DPC) is preparing to publish a report on its compliance assessment in the retail sector.
Tesco maintains transparency regarding customer data use and does not sell data to third parties, allowing Clubcard holders to opt out of targeted marketing. Cronin views loyalty cards as a means for large-scale data collection to track habits, potentially enabling third parties to create detailed profiles if data is shared unlawfully. This data can include spending habits, purchase details, and personal information, allowing for precise conclusions about private lives.