Retailers Insist on Mobile Numbers Despite Data Protection Laws, Sparking Consumer Outcry

Have you ever entered a mall or supermarket only to be approached by a salesperson at the entrance or exit, thrusting a pen and a small form into your hands, demanding your contact details for a lucky draw? In today's digital era, where data is often hailed as the new gold, consumers across Hyderabad and Vijayawada are increasingly pressured by retail outlets to surrender their phone numbers for purchases ranging from jewelry to emergency medicines at pharmacies or even chocolates at supermarkets. This occurs despite clear regulations that prohibit the unnecessary collection of personal data under the Digital Personal Data Protection Act (DPDP Act).

Widespread Practice Across Retail Sectors

Courts have repeatedly imposed fines on shopkeepers for insisting on customers' mobile numbers, yet enforcement remains alarmingly weak. As a result, the practice continues largely unchecked, raising serious questions about compliance with data protection laws and the safeguarding of consumer privacy. Many consumers interviewed expressed deep concerns about their mobile numbers falling into the wrong hands or being exploited for marketing and other activities without their explicit consent. While some are aware they can refuse to share their numbers, others provide them in exchange for rewards and benefits, highlighting a divided consumer response.

Paperless Transactions at Movie Theaters

This intrusive practice is not confined to retail stores alone. Moviegoers who purchase tickets at box offices in malls or local cinema halls report being asked to provide their mobile numbers so that tickets can be sent digitally. Consumers rarely receive information on how long their numbers will be stored in a company's database or whether the data might be used for other purposes, such as marketing or sharing with third parties.

"It's always a hassle. Many people give their numbers without even thinking for a second. When I ask the person at the counter why they need my number when I am physically present to collect the ticket, they never have a clear answer. They just say it is mandatory to complete the purchase," says N Naresh, a frequent moviegoer.

He adds that while standalone theaters sometimes allow customers to proceed without sharing their number if they insist, large multiplex chains rarely offer the same flexibility. Consumers argue that even if theaters aim to go paperless, they could provide alternatives like email IDs instead of insisting on phone numbers, which often leads to a surge in spam calls.

Privacy Risks and Consumer Vigilance

"I am worried when someone asks for my number casually for small purchases, as it is linked to several accounts and could expose sensitive information. Theaters and shops should stop this practice unless there is a reasonable justification for collecting people's numbers," says K Sridevi, an IT professional.

She points out that when customers recite their numbers aloud at billing counters, there is an additional risk of misuse by anyone within earshot, further compromising privacy.

Preference for Standalone Shops Over Branded Outlets

K Ramanaiah, an insurance executive in Vijayawada, prefers buying gold and silver ornaments from standalone jewelry shops in the One Town market rather than branded chains. "I avoid visiting branded jewelry showrooms and choose standalone shops as they do not mandate customers to share personal information. At branded outlets, it becomes a herculean task to make a purchase as one has to provide personal data such as Aadhaar details and mobile number. Without these, they do not proceed with the transaction. I don't face this issue at smaller jewelry shops in the market area," he explains.

Ramanaiah notes that, to his knowledge, Indian government norms do not require businesses to collect personal data for routine purchases, but enforcement appears inadequate. "There must be a mechanism to penalise businesses that deny service to customers who are unwilling to share personal information. These days, almost all businesses across sectors insist on collecting mobile numbers," he emphasizes.

Pharmacy Chains and Mandatory Data Collection

From life-saving medicines to simple over-the-counter items like paracetamol or pain-relief balm, consumers report being routinely asked to provide their phone numbers to generate bills. Shopkeepers often cite company policy, claiming that billing systems cannot produce invoices without a registered mobile number. This is especially prevalent at pharmacy retail chains.

"I went to buy a pain relief balm at a well-known medical store, and they refused to sell it unless I gave my phone number. I don't understand why they need my number when I am not asking for any prohibited drug or making a high-value purchase," questions B Sandeep Reddy, a construction professional.

Some customers admit they do not argue when asked for their number, fearing shops may later refuse returns if no mobile number is linked to the purchase. "For some reason, I might have to return a medicine or product. I do not want to take a chance, so I give my number as it makes returns hassle-free. However, I do not understand how a shop can refuse returns just because we did not share a mobile number while making a purchase," said Sujatha L, another consumer.

Others share their numbers to accumulate reward points that can later be redeemed at the pharmacy, illustrating the varied motivations behind compliance.

Divided Opinions Among Supermarket and Retail Shoppers

Even when purchasing groceries, apparel, or electronic goods from corporate retail outlets, customers say they are routinely asked to provide their mobile numbers at billing counters. Many shoppers feel the practice is increasingly treated as compulsory, despite their reluctance to share personal information. In Vijayawada, several jewelry outlets and supermarkets have reportedly been insisting on mobile numbers during billing.

However, not all customers view the practice negatively. Jwytha Veerabhadra, a 23-year-old shopper, willingly shares her mobile number at supermarkets and apparel stores. "Every time I visit a supermarket or an apparel outlet, I readily give my mobile number when asked at the billing counter. I share it because I want updates about ongoing offers, product availability on WhatsApp, and to redeem reward points credited to my number during shopping," she explains.

On concerns about potential misuse of personal data, she has limited apprehension. "The number might be shared with subsidiary companies, especially since many brands operate across multiple sectors. But I don't think businesses will share personal data with unknown individuals or entities," she says. However, she adds that her stance would change if any misuse of her data results in financial loss.

Incentives and Legal Implications

Consumers report that even small eateries, footwear shops, and clothing stores are increasingly making phone numbers mandatory, often without realizing the practice could be illegal. Reward points, discounts, or the lure of winning a vacation are commonly used as incentives to coax customers into sharing their numbers.

"It's ironic that in most cases there is no proper way to track or redeem these reward points. We rarely use them. The real benefit is for the vendor, who gains access to our numbers," says D Sai Kiran, a tech professional.

Under the DPDP Act, a consumer cannot be denied service for refusing to provide a mobile number unless the information is essential to delivering the service, such as for mobile recharges or top-ups.

Unfair Trade Practices and Legal Recourse

Advocates handling consumer cases assert that no establishment can demand a mobile number or refuse to issue a bill or provide a service if a customer declines to share it. "Phone numbers fall under personal data. A consumer is not obligated to disclose it, and no business can refuse to sell a product or service merely because a customer declines to provide their number. If a consumer demands, an establishment has to issue a proper bill or invoice irrespective of the size of the purchase. Any such violation amounts to an unfair trade practice, and the consumer can approach a court seeking compensation or other appropriate directions," says V Gouri Shankar, advocate and honorary chairman of the Confederation of All Telangana Consumer Organisations (CATCO).

Advocates also caution consumers to remain vigilant, as personal data can be sold to third parties, misused for marketing purposes, or even deployed to train AI models. After collecting payments, if any establishment refuses to give a bill for any reason, including refusing to provide a phone number, a consumer can approach authorities with proof of payment and lodge a complaint. A penalty of up to Rs 50,000 can be imposed for not issuing a bill, according to an official from commercial taxes.

How to Lodge a Complaint

If an establishment refuses to provide a bill after payment:

Check if the establishment is registered under GST.
Keep proof of payment.
Lodge a complaint online on the GST portal or grievance portal.
Contact the National Consumer Helpline (1915), if needed.
Approach authorities if the issue is not resolved.

If an establishment refuses to sell or provide service for refusing to give a phone number:

Write a complaint with details, evidence, and relief sought.
Identify the right forum: District Commission (claim ≤ Rs 50 lakh) or State Commission (claim between Rs 50 lakh and Rs 2 crore).
File online via the e-Jagriti consumer complaint portal.
Pay the court fee based on your claim amount.

What Does the New DPDP Act Say?

Under the DPDP Act:

A consumer cannot be denied service for refusing to provide a mobile number unless the information is essential to delivering the service, such as for mobile recharges or top-ups.
Retailers must offer alternatives like email receipts or physical copies.
Clear disclosures on the purpose of collecting numbers and assurances that data will not be reused or sold are required.
Once the purpose is met or consent is withdrawn, the data must be deleted.
Organisations are obliged to implement safeguards to prevent unauthorised collection, use, or leakage of consumer numbers.