Supermarkets and discounters: Consumer advocates warn against discount apps

According to a survey, almost three quarters of smartphone users have apps from supermarkets and discounters on their phones to redeem discount coupons or take part in loyalty programs. However, many consumers overestimate the potential of these applications, warns the North Rhine-Westphalia Consumer Advice Center (Verbraucherzentrale NRW, VZ NRW).

Advantage often less than expected

"The savings advantage is often less than expected," said data protection expert Christine Steffen on Tuesday. Consumers pay for comparatively small benefits "by disclosing extensive personal data". Whether and how much users save when shopping depends on many factors, according to the consumer advice center. It depends, for example, on whether shoppers prefer regional and seasonal products, whether it is predominantly branded products or rather the chains' own brands that end up in their shopping carts.

In general, retailers are also obliged to indicate the lowest price of the last 30 days for the advertised goods, according to an information page from the consumer protection organization. This is intended to prevent prices from first being raised in order to attract bargain hunters with a supposed discount. Consumers should also look at the small print and not be dazzled by alleged price breaks.

Treacherous shopping list and targeted advertising

The price for discounts via such apps is ultimately paid by the customer, as they become virtually transparent, warns the head office. "Our shopping list says a lot about us: For example, are there any allergies or intolerances? Are there pregnant women, babies or small children in the household? Is someone currently dieting?" Customer profiles could be created from all this information and used for advertising purposes. The use of the app itself is also analyzed in detail: "When and how often do I open the app? Which products do I look at for longer? What search terms do I enter? Retailers can also draw a lot of conclusions from this."

"Many people underestimate the power of advertising," warn the consumer advocates, including about psychological tricks such as time-limited offers or supposedly limited quotas. Users should at least adjust their data protection settings, such as preventing access to their location or objecting to personalization. It is also possible to obtain data free of charge, for which VZ NRW offers a sample letter.

The Baden-Württemberg consumer advice center is already taking legal action against Rewe, its subsidiary Penny and Lidl for misleading representations in the apps. According to Rewe, however, the download and usage figures "clearly speak for the attractiveness of advantage programs" for the responsible consumer.

(wpl)