The supermarket giants are playing a game with their customers over loyalty cards, according to an expert, as the flags transparency concerns. or signup to continue reading Complex rewards systems, increased data collection, and pressure to sign up for a were some of the issues raised in the Australian Competition and Consumer Commission's latest report. Economics researcher at the Australian National University Ralf Steinhauser said customers would be better off if loyalty programs were less complicated and more transparent so people don't spend time "re-engineering their brains".
"The retailers are playing this game with us," Dr Steinhauser said. "The more we figure out [about the programs], the more complicated they seem to make it, in order for us to not optimally respond to their price." It follows the ACCC's recent announcement it was to court for allegedly misleading customers in the "Down, Down" and "Prices Dropped" discount promotions.
The national consumer watchdog's interim inquiry report found that Coles' and Woolworths' loyalty programs had the potential to "adversely impact consumer decision making". The watchdog said the use of complex reward structures and personalised offers was potentially disadvantaging customers, and putting pressure on people to sign up for a loyalty card against their preferences in order to obtain the lowest prices. The ACCC for hundred of products, marketing special deals for goods that had not had their base prices reduced.
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