Some apps that help consumers save money remain a mystery.

Where does the collected data go? Who actually benefits?

Many of these apps, like Checkout51, Caddy, Drop, and Eclipsa, generate revenue from retailers and brands looking to increase sales, reward customers, and learn more about store demographics. “Subscribers” can submit receipts, click credit card links, or take a survey. This allows applications to meet the needs of their customers.

The information the apps receive is of great value to Canadian manufacturers, says Ransom Hawley, who launched Caddy, a cashback app, seven years ago.

“It’s very difficult for me to get good data and up-to-date Canadian information,” he says. Imagine presenting an overview based on six months of data from the United States to Walmart Canada. You will laugh at me. »

Hawley admits to hearing about “bad actors” abusing data. However, he assures that his company openly applies its policies as soon as a consumer signs up for the app.

“There’s a clear notice that says, ‘This is how we’re going to use your data.’ It’s not written in the fine print and hidden in a multitude of legal clauses. »

People form a misconception about companies that collect data to sell to customers, he adds. They do not submit consumer names or other identifying information.

“Companies like Walmart or Nestlé don’t want identifiable data because it would make them liable. The vast majority of the data we sell is aggregated and anonymised. »

Anonymizing data consists of removing anything that could link it to a specific person through a technical process, explains Amran Ahmad of the law firm Norton Rose Fulbright Canada.

Do not confuse de-identified data with de-identified data. These omit a person’s name but include other details such as address or date of birth.

It is the responsibility of applications to handle data securely and to provide advance notice of how the information will be used. Most of these companies are reliable, says Ahmad.

“Very indiscreet” apps

Bon Fay, executive director of the digital economy at the Center for International Governance Innovation, has explored many applications. He refuses to register because the information received is “very indiscreet”.

“The purposes for which this information is used are not very specific,” he says. The only thing that is clear is that they sell them. The old adage that nothing comes for free, especially money in the case of these apps, is true. »

Mr Fay worries that people “don’t fully understand what they are revealing to these apps”. However, a recent survey by Drop, an app that offers points for access to credit card purchases and survey responses, suggests people don’t really care.

For example, 70% of members who responded to a recent survey said they are not concerned about what happens to the data. Almost every fourth respondent was only “slightly concerned”. Only 2% worried about it.

This does not prevent Mr. Ahmad from issuing a warning.

“People need to know that if they give, they can get something else in return. Getting something doesn’t mean you don’t have to give something away. Anything that is free must be considered. People need to know that. »

To see in the video