Advertisers need to act now in response to the ACCC’s Digital Platforms Inquiry

If the ACCC’s recommendations are implemented, big changes could be facing the advertising industry, warn Stephen von Muenster, Stephanie Scott and Rebecca Blumber. Accordingly, advertisers need to get ahead of the increased scrutiny and regulation.

We all know that data is being collected and used by digital platforms (most notably Google and Facebook) in advertising, media and communications. Among other scandals, the 2018 Facebook Cambridge Analytica data privacy breach highlighted how such use of data has a large-scale impact on individuals’ privacy. Up until recently, when that tick box appeared on screen, most people would blindly agree to their personal data being virtually shipped off around the world to be used in ways they were unlikely aware of. Cambridge Analytica has shone a light on the use of this data, and consumers are no longer sitting back quietly and allowing this to occur.

Closer to home, the Australian Competition and Consumer Commission (ACCC) is already flexing its muscles in respect of misleading and deceptive conduct under consumer law. The ACCC has commenced proceedings in the Federal Court against medical appointment booking app Health Engine, alleging that the platform has been collecting and disclosing users’ personal data to insurance brokers without consent. The app’s developers face millions of dollars in fines if they are found guilty of these alleged breaches.

The ACCC’s Digital Platforms Inquiry

While platforms such as Facebook and Google can be largely positive in the effects they have on business success, their collection of users’ personal data is controversial to say the least.

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