Manufactured Consent: New report shines spotlight on dodgy practice of lead generation
Consumer Action Law Centre has published a new report Manufactured Consent: stopping the harm from manipulative lead generation detailing the complicated practice and its devastating consumer harms.
Manipulative lead generation is the capture, use and sale of people’s personal information to sell them a product. ‘Consent’ for personal details to be used is generated in opaque and manipulative ways, if it exists at all. People do not understand what they’ve consented to and in most cases have no idea which companies are holding, buying and using their information.
“Manipulative lead generation is unlike traditional advertising, where the link between an advertisement and the business selling the product is clear,” says Eleanor Doran, Consumer Action’s Assistant Director, Policy and Campaigns.
“People think they are entering their details online for a certain purpose, only to find themselves facing aggressive marketing, or even a doorknock, from an unfamiliar business who has bought this information.”
Lead generation played a significant role in the collapse of First Guardian and Shield Master Funds where 11,000 Australians lost over $1 billion. First Guardian and Shield collectively paid approximately $105 million to lead generators who referred victims to financial advisors who convinced investors to move their retirement savings into the high-risk funds.
“Manipulative lead generation circumvents unsolicited selling laws enabling the high-pressure sales of bad-quality products – from superannuation, solar panels, to education courses, and there are many system levers that can stop it,” says Ms Doran.
The report calls for banning lead generation in high-risk sectors, the expanding of the Unfair Trading Practices prohibition to cover financial products, regulating lead generation advertising on digital platforms and strengthening consent and disclosure requirements.
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Media contact: media@consumeraction.org.au or 0413 299 567
