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 accountB次元官网网址檚 254,000 followers to supermarket sales and deals at the likes of Lululemon or Amazon.

But one of her tried and true savings methods B次元官网网址� apps like Checkout51, Caddle, Drop, Eclipsa, which offer gift cards, points and cash back in exchange for uploading receipts, tracking purchases or completing surveys B次元官网网址� poses a mystery to the savvy shopper.

B次元官网网址淭he purpose of these apps is to collect data mainly, from my understanding, but I donB次元官网网址檛 know for sure,B次元官网网址� said Schaubroeck, who lives in Dominion City, Man. about 100 kilometres south of Winnipeg. B次元官网网址淚 donB次元官网网址檛 know a ton about that side of it.B次元官网网址�

SchaubroeckB次元官网网址檚 right about the apps collecting data, but where does the information go and who is really profiting from it?

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. CustomersB次元官网网址� submitted receipts, linked credit cards and completed surveys help the apps deliver on their clientB次元官网网址檚 demands.

The information the apps deal with can be incredibly value for Canadian brands, said Ransom Hawley, who started a cashback app seven years ago, after working for Ziploc- and Windex-maker SE Johnson.

B次元官网网址淚t was just really difficult for me to get good data and insights that were Canadian and recent,B次元官网网址� he recalled.

B次元官网网址淚magine presenting insights to Walmart and the data being six months ago from the U.S., theyB次元官网网址檇 just get laughed out of the room.B次元官网网址�

A happenstance meeting with Apple co-founder Steve Wozniack convinced him to build Caddle, a St. CatherineB次元官网网址檚, Ont. company doling out cheques for uploaded receipts, surveys and reviews.

Daily surveys net users five cents each. An uploaded receipt from stores like No Frills, Dollarama, Home Depot and Sephora can make them between 10 cents and one dollar.

The receipts help Caddle learn which customers have bought products featured on the app, so it can validate that it prompted a purchase.

Other brands want Caddle to land their products reviews. The receipt identifies when someone bought a target item, so Caddle can offer them money for writing a review.

The final way Caddle makes its money is through surveys, which help clients draw conclusions about the shopping habits and opinions.

While HawleyB次元官网网址檚 heard of B次元官网网址渂ad actorsB次元官网网址� mishandling data, he said Caddle is upfront about its policies from the moment users enroll.

B次元官网网址淭hereB次元官网网址檚 a clear disclaimer there that says B次元官网网址榟ey, this is how weB次元官网网址檙e going to use your dataB次元官网网址� and itB次元官网网址檚 not buried somewhere and in legalese,B次元官网网址� Hawley said.

ItB次元官网网址檚 a B次元官网网址渕isconception,B次元官网网址� he added, that companies like his collect data and pass it along to clients with peopleB次元官网网址檚 names and other identifiable details.

B次元官网网址淲ith the things that we sign with like the Walmarts and Nestles, they donB次元官网网址檛 want personally-identifiable data, because it makes them liable,B次元官网网址� he said.

B次元官网网址淪o the vast majority of the data that we sell is just aggregated and anonymized.B次元官网网址�

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.

However, some people confuse the term with de-identified data B次元官网网址� data that removes names, but often leaves details like an address or a date of birth, which leaves room for reidentification.

Regardless of which apps use, itB次元官网网址檚 incumbent for them to handle data safely and be upfront about how information will be used, which Ahmad said most apps do.

Bob Fay, the managing director of digital economy at the Centre for International Governance Innovation, reviewed several money saving apps, but refused to sign up for any because the information they collect is B次元官网网址渧ery invasive.B次元官网网址�

B次元官网网址淚t is very unclear how that information is being used. The only thing I think that is clear is that they are monetizing that information,B次元官网网址� he said.

B次元官网网址淭he old adage that thereB次元官网网址檚 no such thing as a free lunch, or in the case of these apps, free money is true.B次元官网网址�

He worries people B次元官网网址渄onB次元官网网址檛 fully understand what they are giving away with these apps,B次元官网网址� but a recent survey from Drop, an app offering points in exchange for access to customersB次元官网网址� credit card purchases and survey responses, suggests that isnB次元官网网址檛 a concern for many.

The Toronto-based company found 70 per cent of members it recently surveyed werenB次元官网网址檛 bothered by the sale of their data, 23 per cent were B次元官网网址渟lightly bothered.B次元官网网址� Only the final two per cent were bothered.

B次元官网网址淭heyB次元官网网址檙e not against it, theyB次元官网网址檙e very well aware of the fact that their data is being used, and theyB次元官网网址檙e happy to opt into it because the value theyB次元官网网址檙e receiving on the other side supersedes whatB次元官网网址檚 happening there,B次元官网网址� said Amber Foucault, DropB次元官网网址檚 chief product officer.

DropB次元官网网址檚 userbase is primarily generation Z and millennials and the app, which advertises B次元官网网址渂ank level security,B次元官网网址� promises it doesnB次元官网网址檛 provide user data to third-parties.

B次元官网网址淥nly anonymous aggregate information may be presented to third parties,B次元官网网址� Drop writes on its website.

Its clients are often companies looking for shopping insights or help targeting new customers or B次元官网网址渂attleground customers,B次元官网网址� who consistently shop with their competitors.

B次元官网网址淚f a user hasnB次元官网网址檛 shopped at a beauty brand before we could offer them the opportunity to shop there and give them an incentive to maybe switch from their current beauty brand,B次元官网网址� Foucault said.

B次元官网网址淥r if that shopper is really loyal, we could give the beauty brand the opportunity to reward or incentivize them a little bit more because of that continued shop.B次元官网网址�

Using these methods, it has rewarded over $48 million to more than five million users, including many that flocked to the app in recent months as 20-year inflation materialized.

But Ahmad still has a warning.

B次元官网网址淧eople should know when they give something, they may be getting something, but just because youB次元官网网址檙e getting something doesnB次元官网网址檛 mean you donB次元官网网址檛 have to give,B次元官网网址� he said.

B次元官网网址淲ith anything thatB次元官网网址檚 free, guaranteed thereB次元官网网址檚 some component thatB次元官网网址檚 a quid pro quo for it, so I think people have to go (into it) eyes wide open.B次元官网网址�

Tara Deschamps, The Canadian Press

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