The business practices and products of data brokers are set to be examined by the Australian Competition and Consumer Commission (ACCC) as part of an ongoing digital platform services inquiry.
Its eighth issues paper [pdf], released on Monday, the commission said it is considering issues linked to data collection, storage, supply, processing and analysis services supplied by data brokers in Australia.
The ACCC will accept comments on the data brokerage sector until early August, with its interim report due at the end of March 2024.
The ACCC is seeking to understand what potential consumer and small business harms and benefits are associated with data brokers' collection, processing and analysis of information, as well as options for reform.
The regulator said data brokers collect and combine information to create data products and services which they onsell or share with third-parties, often with little transparency.
The ACCC noted a range of potential issues stem from the practice, including how the data is used for personalising direct marketing, misuse of information resulting in discrimination, utilisation of incorrect data, misuse of personal information by malicious actors and misleading terms and conditions.
The ACCC will examine products and services supplied by brokers including CoreLogic, Equifax, Experian, Illion, LiveRamp, Nielsen, PropTrack, Oracle and Quantium.
“There is little transparency and awareness of how data brokers operate in Australia despite the vast amounts of information they collect about Australian consumers and the central role they play in enabling the exchange of information between businesses," ACCC chair Gina Cass-Gottlieb said in a statement.
“Some Australian consumers may not be aware that their information is being collected, stored and sold by third-party data brokers with whom they have no direct relationship.
"This report will explore how third-party data brokers collect and use information to create products and services and if there may be competition and consumer issues arising from this."
Cass-Gottlieb added the ACCC is keen to hear from data brokers themselves, as well as from consumers and businesses that interact with the data broker industry.
