Key Points
- RentTech platforms have been given a Shonky Award for ‘data gouging’ and taking advantage of renters.
- The Shonky Awards are compiled by consumer watchdog Choice and highlight Australia’s worst products and services.
- Woolworths and Coles both picked up awards.
As Australia’s housing crisis continues, rental platforms – also known as RentTech – have been highlighted in the 2023 Shonky Awards for ‘data gouging’ desperate home seekers.
The Awards, which are run by consumer advocacy group Choice, name and shame the worst goods and services in Australia.
According to Choice, third-party platforms such as Ignite, 2Apply and Snug regularly require users to hand over excessive amounts of personal data including bank statements, references from five jobs and photos of children.
Samantha Floreani, program lead at charity Digital Rights Watch, said: “The sheer volume and type of personal information that renters are being compelled to provide creates unreasonable privacy and digital security risks.
“It’s often very unclear who gets access to this information, and how long it will be kept for.”
In April, a Choice report found 41 per cent of renters in Australia had been pressured by their agent or landlord to use a RentTech platform, and 60 per cent of these were uncomfortable with the amount and type of information collected.
Choice senior campaigns and policy adviser Rafi Alam said industry regulation is needed to ensure tenants are protected from unfair and exploitative practices.
“We’re hoping to see strong action by our governments on RentTech, because RentTech businesses will continue to exploit the housing crisis for their own gain until robust guardrails are set up,” Alam said.
In a statement, Snug told SBS News renters are able to receive notifications about property managers accessing their data and are able to delete their profile data at any time.
“Snug takes data security and privacy very seriously and automatically deletes sensitive information and documents at 60 days to protect customer data,” the statement said.
The statement said Snug welcomes ongoing privacy reforms.
‘Cashing in during crisis’
Supermarket giants Coles and Woolworths were also handed a Shonky for recording record profits and raising prices during the cost-of-living crisis.
In August, Woolworths reported a $1.62 billion full-year profit after tax, while Coles reported its cash profit rose to $1.1 billion.
Personal alarms – devices designed to detect falls or emergencies – were also awarded a Shonky.
Choice has tested more than 40 personal alarm devices and described them as “unreliable at best”.
Online retailer Kogan was also awarded a Shonky for signing shoppers up to a $99 shipping subscription.
Microsoft Gaming picked up an award for their X-box mini-fridge, which Choice said failed to adequately chill drinks, describing the device as “e-waste straight out of the box”.
