Zerodha founder and CEO Nithin Kamath has raised concerns about how several mobile apps collect and use user data without clearly informing users or asking for proper consent.
In a post on social media platform X, Kamath said most apps have become difficult to use because of spam notifications, unnecessary messages, and design tricks that confuse users. He also said some apps are even “scammy” in nature.
“Without your knowledge, numerous apps on your phone track and harvest extensive data,” Kamath said.
He added that some apps track what users are doing across other apps as well, not just their own. “Your most personal data is being harvested without your consent and sold to companies for shady targeting purposes,” he said.
Apps collect this data mainly to improve how they advertise to users. By knowing what users do online, companies can build detailed profiles that help them show more relevant ads and increase the chances of users clicking on them. This kind of targeted advertising is more profitable than showing random ads to everyone.
For many tech platforms, advertising is their main source of income. Selling user data or offering it to advertisers helps these companies earn more money from each user. Some apps also use this data to design features that keep users hooked, boosting engagement and, in turn, increasing their revenue from ads or in-app purchases.
Kamath’s comments come at a time when India is moving towards stronger data protection rules. ET reported in January, companies such as ecommerce, social media and gaming platforms may soon have to delete user data three years after it is no longer needed. These companies will also need to inform users 48 hours before deleting their data, and allow them to keep it if required.
In a post on social media platform X, Kamath said most apps have become difficult to use because of spam notifications, unnecessary messages, and design tricks that confuse users. He also said some apps are even “scammy” in nature.
“Without your knowledge, numerous apps on your phone track and harvest extensive data,” Kamath said.
He added that some apps track what users are doing across other apps as well, not just their own. “Your most personal data is being harvested without your consent and sold to companies for shady targeting purposes,” he said.
Apps collect this data mainly to improve how they advertise to users. By knowing what users do online, companies can build detailed profiles that help them show more relevant ads and increase the chances of users clicking on them. This kind of targeted advertising is more profitable than showing random ads to everyone.
For many tech platforms, advertising is their main source of income. Selling user data or offering it to advertisers helps these companies earn more money from each user. Some apps also use this data to design features that keep users hooked, boosting engagement and, in turn, increasing their revenue from ads or in-app purchases.
Kamath’s comments come at a time when India is moving towards stronger data protection rules. ET reported in January, companies such as ecommerce, social media and gaming platforms may soon have to delete user data three years after it is no longer needed. These companies will also need to inform users 48 hours before deleting their data, and allow them to keep it if required.
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