Lidl Scraps Pfandbon System - Takes Legal Action with Its Own Mobile Application from August Onwards
In a move towards a more digital future, Lidl, the global supermarket chain, is digitizing its Pfandbon process across all stores in Germany. With the rollout of the Lidl Plus app, customers can now have their Pfandguthaben credited digitally, and the balance will be deducted at checkout using the Lidl Plus card during their next shop.
However, the digitization of personal data has raised concerns about data protection. The Federation of German Consumer Organizations (vzbv) has filed a lawsuit against the Lidl app, alleging that consumers are paying for app discounts with their personal data. Yet, there is currently no available verified information on the data protection allegations against the Lidl app by the vzbv.
Despite these concerns, the Lidl app offers a range of features beyond digital Pfandbons. Launched in February 2018, the app has gained over 100 million users worldwide. It provides payment options, digital receipts, scan technology, and information on discounted prices. Customers can also choose whether to use the digital or analog method for their Pfandbons, with the option to continue using traditional printed receipts after August 4th.
The Lidl app is part of the supermarket's broader digitalization strategy aimed at "fully exploiting the potential of digitalization in retail". Lidl, part of the Schwarz Group, operates over 12,000 stores worldwide and 3,000 in Germany. This digital Pfandbon change marks the first time a major German food retailer has implemented such a change nationwide.
The vzbv alleges that Lidl does not adequately inform users before they agree to the app's terms about the data collection. The Lidl app collects personal data such as name, age, phone number, and purchasing behavior, which can be shared with market research companies. The lawsuit began on July 22 at the Stuttgart Higher Regional Court, with a decision expected on September 23.
As the case unfolds, it remains to be seen how Lidl will address these data protection concerns and whether changes will be made to the app's data collection practices. For now, customers can continue to enjoy the convenience of the Lidl Plus app while considering their personal data privacy.
The Lidl Plus app, beyond digitizing Pfandbons, offers various features such as payment options, digital receipts, scan technology, and information on discounted prices, thereby expanding into the finance and technology sectors of lifestyle. Despite the legal battle surrounding data protection concerns, the app has amassed over 100 million users worldwide, venturing into the realm of entertainment as well. The ongoing lawsuit at the Stuttgart Higher Regional Court involves allegations that Lidl does not adequately inform users about data collection, raising questions about the handling of personal data in business transactions.
