law enforcement
E-receipts breaking data protection laws
Consumer watchdog Which? has claimed that several major retailers are breaching data protection laws after an investigation found many were including unwanted marketing information on e-receipts sent to shoppers.
The consumer association sent mystery shoppers to 11 retailers, with each retail group visited a minimum of three times and in each case the mystery shoppers requested an e-receipt, but told the retailer they did not want to receive any additional marketing.
Regulations state that retailers must not send direct marketing to new customers by email unless the person receiving the email has consented to receive it. If a retailer asks for an email address at the point of sale and plans to send marketing information, they must give shoppers the option to opt out.
E-receipts issued by 4 of the retailers visited contained promotional marketing, indicating that they may be breaking data protection rules.
One shop sent a marketing email with the e-receipt attached, while others included prompts to sign up for the store’s newsletter or invitations to complete a survey in return for money off a future purchase.
In one of the stores visited, the Which? mystery shopper was correctly told by a store worker that the retailer was not allowed to send marketing information if a customer opted out, but then subsequently received an e-receipt which contained marketing messaging.
The investigation also identified some good practice. In the three stores of one retail chain that was visited, there were signs displayed at the tills which included information on how customer details would be used and a prompt to find out more on the website.
Although most shops in the investigation complied with the law, the e-receipts received by the mystery shoppers which did contain unwanted marketing messages raise concerns that some retailers or their employees do not fully understand their obligations.
Which? launched its investigation after conducting a survey of more than 2,000 people, which found 70 per cent were concerned about how retailers might use their data.
The research also revealed that 59 per cent were concerned that if they received an e-receipt their email address might be shared with third parties, while 42 per cent were concerned that e-receipts made it easier for companies to target them with personalised marketing.
Alex Neill, Which? managing director of home products and services, said: “More and more shops are offering e-receipts, which can be convenient for shoppers, but our investigation suggests not all shops are aware of the law.
Retailers must do everything possible to ensure shoppers can have confidence that they won’t be bombarded with unwanted marketing emails and that their personal details are safe.”
