Consumer organisation sues Lidl for Plus app

A German consumer organisation is suing Lidl, claiming the retailer does not sufficiently inform customers about the use of their data in its Plus app. This test case could have important consequences for other retailers.

Data use

Does the Lidl Plus app violate consumer rights? The Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband) thinks so, saying that Lidl does not sufficiently inform customers about the fact that the data they share in exchange for the discounts and coupons they receive is not only used for personalised advertising, but also for market research. The organisation has therefore decided to sue the discounter, Lebensmittel Zeitung reports.

According to German law, companies must inform consumers about the total price of the goods or services they offer or, if this is not possible, at least explain how the price is calculated. However, the consumer organisation claims that Lidl does not sufficiently comply with this obligation by not specifying the terms and conditions for the use of customer data. According to the consumer union, this is a test case: the ruling could also have consequences for the customer loyalty programs of other retailers as well. The Lidl Plus app now has more than 100 million users.