The permissions apps request goes beyond simple collection of personal details and, in extreme examples, can let apps monitor text messages and track all browser traffic sent from a device.
Several simple torch apps on the Android market also request your location on download, Kaafar said.
Canberra University's Centre for Internet Security director Nigel Phair said users don't realise the value of the information they hand over.
"That's the problem: people don't value their personally identifying information ... we still haven't got this correlation between real world and online," Phair said.
He said it was pretty obvious that companies like Google carve most of their profits out other people's information by using it for lucrative targeted advertising. Phair urged the ACCC to be more active in policing the market.
"We need carrot and stick. The ACCC do a great job in so many other areas, this is just another consumer area they need to devote resources to," he said.
That's the problem: people don't value their personally identifying information... we still haven't got this correlation between real world and online.
The ACCC said it could get involved if Australian Consumer Law was breached by businesses misleading consumers about the information they collect.
Both Phair and Kaafar said it was unrealistic to expect users to read often opaque privacy policies, which in Pokemon Go's case is nearly 3,000 words long.
Phair said the onus shouldn't fall solely on consumers, and that a simple explanation of app permissions could properly inform users.
Pilgrim said his office had contacted Pokemon Go's developers to ensure they were managing personal data in accordance with the privacy act.
"This is a timely reminder that people need to read the privacy policies of all smartphone apps before signing up," Pilgrim said.