Canberra businesses with lower-than-expected check-in numbers on the Check In CBR app will be contacted by the ACT government as part of compliance monitoring.
About 200 businesses have already been contacted about low check-in levels.
But concerns have been raised by some businesses that the application is being used for more than contact tracing purposes and the opposition has demanded an explanation.
The ACT government said check-in data was monitored to make sure reasonable steps were being taken to ensure people were checking in through the application.
In a letter seen by The Canberra Times, a business was contacted after the ACT government deemed its check-ins were lower than expected.
"Our records show that check-in rates for your businesses via the Check In CBR app are tracking lower than expected," the letter said.
"This data is based on your known occupancy capacity determined under the current public health direction.
"We are writing to remind you as a restricted business in the ACT, you must take all reasonable steps to ensure people - including your staff - record their attendance using the app."
The ACT government's Check In CBR app is set to become mandatory across more venues from July 15, with retail settings, rideshare services and public transport to be included.
The ACT government has consistently said personal data on the application would be used for contact tracing purposes only.
A government spokesman maintained this was still the case. He said the business data was being analysed to determine check-in statistics and this was completely separate to personal check-in data.
"The ACT government has been very clear with the community that check-in data collected through the app is only used for contact tracing purposes," the spokesman said.
"In this current environment it's really important that businesses are taking reasonable steps to ensure patrons are checking in via the app.
"The ACT government will continue to actively monitor the use of Check In CBR and to ensure businesses are adhering to the public health directions."
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However, ACT Opposition Leader Elizabeth Lee said the letter sent to businesses suggested the data was being used for more than just contact tracing.
"Canberrans have the right to trust that data collected through the Check In CBR app is being used appropriately," she said.
"Check In CBR plays a vital role in contact tracing, however, the ACT government must be up front with Canberrans about who and how they are using the data.
"It appears from correspondence between the ACT government and local businesses that this data is being used for more than just contact tracing.
"If this is the case, that is obviously a serious concern and Canberrans have every right to expect an explanation from the government."
Canberra Business Chamber chief executive Graham Catt said it was important the government took an education approach to compliance, not a punitive one.
"If that letter is part of that ongoing process of education, communication and persisting, then that's OK," Mr Catt said.
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