The Australian Competition and Consumer Commission (ACCC) is setting its sights on data broker services. 

The regulator has released an issues paper, calling on consumers, businesses, and all interested parties to submit their insights as part of a five-year inquiry into digital platform services.

With the likes of CoreLogic, Equifax, Experian, and others under the microscope, the ACCC aims to shed light on the secretive practices of data brokers. 

These enigmatic entities amass vast amounts of information on Australian consumers from various sources, ranging from social media platforms and search services to customer loyalty programs and public records.

“There is little transparency and awareness of how data brokers operate in Australia despite the vast amounts of information they collect about Australian consumers and the central role they play in enabling the exchange of information between businesses,” ACCC Chair Gina Cass-Gottlieb said.

The scope of the inquiry covers the creation and supply of data broker products and services, with a keen eye on potential competition and consumer issues arising from their operations. 

Among the offerings provided by data brokers are audience profiling reports, consumer purchasing data, and products geared towards risk and fraud management for insurance or tenancy applications.

Ms Cass-Gottlieb expressed concern about the unawareness among Australian consumers about their data being collected, stored, and traded by these third-party data brokers, with whom they have no direct relationship.

The ACCC is seeking input from data brokers, as well as consumers and businesses who interact with the data broker industry. Particular attention is given to understanding how data products and services can benefit small businesses.

The inquiry's focus is solely on third-party data brokers that collect information from external sources and share or sell that data with other organisations. First-party brokers, who collect and use data within their own business or share it directly with others, are outside the scope.