Age verification for online booze sales too expensive, say Aussie retailers

As Australia continues its transition toward digital ID, the country’s liquor lobby is raising concerns about how much it will cost to implement digital ID age verification for alcohol purchases, and whether small online businesses will be able to compete.

The Mandarin reports that, with draft legislation circulating among industry players, Retail Drinks Australia (RDA) is warning that there are not enough digital identity providers to meet demand, and that the cost of integrating digital ID verification for online sales could be prohibitive for smaller businesses and merchants.

New South Wales recently introduced new online age verification requirements for same-day online liquor sales, including the use of a provider accredited under the Trusted Digital Identity Framework (TDIF). The NSW law paves the way for similar laws nationwide. RDA has given its support to the legislation, but in comments submitted to the government, it says “we emphasize the practical needs of online liquor retailers reliant on digital identity solutions to verify the identity of their customers purchasing alcohol products.”

“To date, the digital identity sector has been constrained by delays in providers receiving TDIF accreditation, with only a handful of providers becoming formally accredited,” RDA says. “Consequently, this has meant that there are limited options for online liquor retailers seeking to adopt digital identity services thereby adding to the costs and inconveniences involved in this process.” The organization quotes members who claim that using TDIF-accredited providers can cost as much as $2.00 per transaction – or, around 20 percent of a standard $10 delivery fee for booze ordered online.

Data privacy also a concern with digital ID

Even with trusted providers, says RDA, digital ID comes with the risk of unlawful sharing of biometric data by unscrupulous actors. It cites information such as purchasing history or whether a customer has previously opted to self-exclude from online alcohol deliveries as “highly sensitive information which should not be used by identity providers in an unauthorized way.”

As cautions against abuse, the organization supports ensuring that the Australian Competition and Consumer Commission (ACCC) has adequate funding, and the inclusion of a clause in the legislation which prohibits accredited vendors from “using or disclosing personal information in their possession or control for marketing activities not related to their digital ID services.”

The push to implement digital ID systems for age verification in online alcohol sales has picked up momentum worldwide, as technology, investment and infrastructure converge to enable widespread deployment. The UK is currently engaged in a consultation on adopting digital identity-based age verification for remote booze sales, and countries in Europe have experimented with age estimation and digital ID systems for alcohol retailers.

Article Topics

age verification  |  Australia  |  biometrics  |  data privacy  |  digital ID  |  legislation  |  retail biometrics