Privacy Reforms Impact Loyalty Programs
Proposed privacy reforms in Australia could impact loyalty programs, allowing opt-outs from data-driven marketing. Woolworths seeks an exemption, while analysts advise Wesfarmers regarding Flybuys.
September 7, 2023
Privacy Reforms Targeting Loyalty Programs
Proposed privacy reforms from the Attorney-General’s Department are set to impact loyalty programs significantly. These reforms will empower customers with the right to opt-out of marketing endeavors that utilize their loyalty program data.
Response from Woolworths Group
Woolworths Group, which operates Australia's largest retail loyalty program, has proposed that loyalty programs should be exempt from these new regulations. Unlike Flybuys which sells packages of data for specific targeting, Woolworths Group maintains that it only provides access to the data.
Flybuys and Privacy Concerns
Flybuys, owned by Wesfarmers, engages in selling curated packages of customer data to facilitate targeted marketing across more than 400 pre-defined customer groups. In light of the Privacy Act review, analyst firm Jarden has advised Wesfarmers to consider internalizing Flybuys' data operations to better align with forthcoming privacy standards.
