A recent court decision regarding Lidl’s data collection practices has drawn reaction from German consumer protection advocates. Till Steffen, consumer protection policy spokesperson for the Green Party in the German parliament, expressed disappointment regarding the initial rejection of a lawsuit filed by the Verbraucherzentrale Bundesverband (VZBV), a federation of consumer advice centers. However, he noted the court’s decision to permit an appeal, offering a potential avenue for further review.
Steffen highlighted a shift in how businesses gather consumer information, pointing out that while customer loyalty cards were previously the primary method, apps now collect valuable data on purchasing behavior. He acknowledged the attractive pricing often associated with these programs, but cautioned against the underlying business strategy aimed at maximizing profit.
The Green Party politician criticized the expectation that consumers should meticulously review lengthy terms and conditions before utilizing these apps and challenged the portrayal of these apps as “free”. He argued that consumers effectively pay with their data.
Steffen emphasized the necessity of safeguarding consumers from such incentivized offerings, advocating for data usage that is both fair and transparent as the foundation for all digital business models.