TORONTO — When it comes to saving on groceries or trips to the mall, Nichole Schaubroeck is a pro.
She scours flyers and websites, alerting her @couponcutiecanada Instagram account's 254,000 followers to supermarket sales and deals at the likes of Lululemon or Amazon.
Many of the apps make money from contracts with retailers and brands wanting to trigger purchases, reward loyal customers and learn more about how specific demographics shop. Customers' submitted receipts, linked credit cards and completed surveys help the apps deliver on their client's demands. A happenstance meeting with Apple co-founder Steve Wozniack convinced him to build Caddle, a St. Catharines, Ont., company doling out cheques for uploaded receipts, surveys and reviews.
The final way Caddle makes its money is through surveys, which help clients draw conclusions about the shopping habits and opinions. "With the things that we sign with like the Walmarts and Nestles, they don't want personally-identifiable data, because it makes them liable," he said.Truly anonymized data is stripped of identifiable information through a technical process, so even if it is found, it cannot be tied back to a person, said Imran Ahmad, partner and head of technology at law firm Norton Rose Fulbright Canada.
"It is very unclear how that information is being used. The only thing I think that is clear is that they are monetizing that information," he said. "They're not against it, they're very well aware of the fact that their data is being used, and they're happy to opt into it because the value they're receiving on the other side supersedes what's happening there," said Amber Foucault, Drop's chief product officer.
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