What's Happening?
The Australian rental technology platform 2Apply has been criticized by the Office of the Australian Information Commissioner (OAIC) for using manipulative design techniques, known as 'dark patterns', to collect excessive personal information from prospective
tenants. These techniques included 'confirmshaming', where applicants were pressured to provide more information under the guise that it would expedite their application process. The OAIC's determination marks the first time the concept of 'online choice architecture' has been applied to assess whether personal information was collected fairly under the Australian Privacy Principles. The privacy commissioner highlighted the power imbalance faced by renters, who often feel compelled to share personal data to avoid housing precarity.
Why It's Important?
This ruling is significant as it sets a precedent for how digital platforms should handle personal data collection, particularly in the rental market. The decision underscores the need for transparency and fairness in data practices, especially in sectors where consumers may feel vulnerable. The ruling could prompt other RentTech platforms to reassess their data collection methods to ensure compliance with privacy standards. This development is crucial for protecting consumer rights and could influence similar regulatory actions in other jurisdictions, potentially impacting how digital platforms operate globally.
What's Next?
Following the OAIC's determination, 2Apply's parent company, IRE, has agreed to stop collecting certain types of data, such as applicants' gender, smoking status, and bankruptcy history. However, they have not agreed to cease collecting other data deemed unnecessary by the privacy commissioner. IRE has the option to appeal the determination at the Administrative Review Tribunal within 28 days. This case may lead to increased scrutiny of data practices across the RentTech industry, prompting other companies to audit their data collection processes to avoid similar regulatory actions.
