Berlin commissioner for data protection imposes fine on real estate company

6. November 2019

On October 30th, 2019, the Berlin Commissioner for Data Protection and Freedom of Information issued a fine of around 14.5 million euros against the real estate company Deutsche Wohnen SE for violations of the General Data Protection Regulation (GDPR).

During on-site inspections in June 2017 and March 2019, the supervisory authority determined that the company used an archive system for the storage of personal data of tenants that did not provide for the possibility of removing data that was no longer required. Personal data of tenants were stored without checking whether storage was permissible or even necessary. In individual cases, private data of the tenants concerned could therefore be viewed, even though some of them were years old and no longer served the purpose of their original survey. This involved data on the personal and financial circumstances of tenants, such as salary statements, self-disclosure forms, extracts from employment and training contracts, tax, social security and health insurance data and bank statements.

After the commissioner had made the urgent recommendation to change the archive system in the first test date of 2017, the company was unable to demonstrate either a cleansing of its database nor legal reasons for the continued storage in March 2019, more than one and a half years after the first test date and nine months after the GDPR came into force. Although the enterprise had made preparations for the removal of the found grievances, nevertheless these measures did not lead to a legal state with the storage of personal data. Therefore the imposition of a fine was compelling because of a violation of article 25 Abs. 1 GDPR as well as article 5 GDPR for the period between May 2018 and March 2019.

The starting point for the calculation of fines is, among other things, the previous year’s worldwide sales of the affected companies. According to its annual report for 2018, the annual turnover of Deutsche Wohnen SE exceeded one billion euros. For this reason, the legally prescribed framework for the assessment of fines for the established data protection violation amounted to approximately 28 million euros.

For the concrete determination of the amount of the fine, the commissioner used the legal criteria, taking into account all burdening and relieving aspects. The fact that Deutsche Wohnen SE had deliberately set up the archive structure in question and that the data concerned had been processed in an inadmissible manner over a long period of time had a particularly negative effect. However, the fact that the company had taken initial measures to remedy the illegal situation and had cooperated well with the supervisory authority in formal terms was taken into account as a mitigating factor. Also with regard to the fact that the company was not able to prove any abusive access to the data stored, a fine in the middle range of the prescribed fine framework was appropriate.

In addition to sanctioning this violation, the commissioner imposed further fines of between 6,000 and 17,000 euros on the company for the inadmissible storage of personal data of tenants in 15 specific individual cases.

The decision on the fine has not yet become final. Deutsche Wohnen SE can lodge an appeal against this decision.

 The Netherlands passed new law on the use of passenger data

31. October 2019

In June 2019 the Netherlands adopted a new law concerning the processing and sharing of passenger data by airlines. Since the 18 June 2019, airlines are now required to share passenger data with a newly established passenger information unit  (‘Pi-NL’) for all flights that depart from the Netherlands or arrive in the Netherlands. The passenger data to be passed on include, for example nationality, full name, date of birth, number and type of travel documents used.

The new established specialised unit will be independent with its own statustory task and authorisations and will collect,process and analyse passenger data and share it with the competent authorities such as the police, Public Prosecution and with comparable units in other Member States oft he EU and with Europol, if necessary. It falls under the responsibility of the Minister of Justice and Security. The purpose of such data processing is to prevent, detect, investigate and prosecute terrorist offences and serious criminal offences.

This law implements the European PNR (Passenger Name Record) directive in Dutch law. The aim of the PNR directive is to ensure internal security within the European Union and to protect the life and safety of persons. It will also promote more effective cooperation between EU Member States.

In drafting this law, the Dutch gorvernment weighed the importance of combating terrorism against the privacy interests of passengers.  Therefore the newly introduced law also contains a number of data protection safeguards and guarantees, such as a limitation on the retention period, a processing prohibition on special categories of personal data and strict conditions for the exchange of such data with other states and the requirement that the Pi-NL appoint a data protection officer.

Data Incident at H&M in Germany

28. October 2019

According to a report of the ‘Frankfurter Allgemeine Zeitung‘ (FAZ), personal data of H&M employees working in the customer center of H&M in Nuremberg, were leaked to other H&M employees who should not have access to this kind of data.

The concerned personal data result of personnel interviews between employees and mangers. The managers stored the personal information, inter alia health data and information on the private life of employees, in files which should have been only accessible for managers, but according to the report, also other H&M employees besides the managers could access the files and thus the confidential employee data.

At the customer center in Nuremberg work several hundreds employees. These were informed by the board of H&M on Wednesday last week, October 23rd 2019, about the data incident. On the following day the board announced, that all stored in the files, was deleted and that measures were taken to ensure data security. Additionally, the data protection officer of H&M in Nuremberg as well as the competent data protection authority were notified about the data incident.

Category: Data breach · GDPR
Tags: , ,

European Commission releases third annual Privacy Shield Review report

25. October 2019

The European Commission has released a report on the E.U.-U.S. Privacy Shield, which represents the third annual report on the performance of the supranational Agreement, after it came into effect in July 2016. The discussions on the review were launched on 12 September 2019 by Commissioner for Justice, Consumers and Gender Equality Věra Jourová, with the U.S. Secretary of Commerce Wilbur Ross in Washington, DC.

The Privacy Shield protects the fundamental rights of anyone in the European Union whose personal data is transferred to certified companies in the United States for commercial purposes and brings legal clarity for businesses relying on transatlantic data transfer. The European Commission is commited to review the Agreement on an annual basis to ensure that the level of protection certified under the Privacy Shield continues to be at an adequate level.

This year’s report validates the continuous adequacy of the protection for personal data transferred to certified companies in the U.S. from the Europan Union under the Privacy Shield. Since the Framework was implemented, about 5000 companies have registered with the Privacy Shield. The EU Commissioner for Justice, Consumers and Gender Equality stated that “the Privacy Shield has become a success story. The annual review is an important health check for its functioning“.

The improvements compared to the last annual review in 2018 include the U.S. Department of Commerce’s efforts to ensure necessary oversight in a systematic manner. This is done by monthly checks with samply companies that are certified unter the Privacy Shield. Furthermore, an increasing number of European Citizens are making use of their rights under the Framework, and the resulting response mechanisms are functioning well.

The biggest criticism the European Commission has stated came in the form of the recommendation of firm steps to ensure a better process in the (re)certification process under the Privacy Shield. The time of the (re)certification process allows companies to get recertified within three months after their certification has run out, which can lead to a lack of transparency and confusion, since those companies will still be listed in the registry. A shorter time frame has been proposed by the European Commission to guarantee a higher level of security.

Overall, the third annual review has been seen as a success in the cooperation between the two sides, and both the U.S. and the European officials agree that there is a need for strong and credible enforcement of privacy rules to protect the respective citizens and ensure trust in the digital economy.

German data protection authorities develop fining concept under GDPR

24. October 2019

In a press release, the German Conference of Data Protection Authorities (Datenschutzkonferenz, “DSK”) announced that it is currently developing a concept for the setting of fines in the event of breaches of the GDPR by companies. The goal is to guarantee a systematic, transparent and comprehensible fine calculation.

The DSK clarifies that this concept has not yet been adopted, but is still in draft stage and will be further worked on. At present it is practiced accompanying with current fine proceedings in order to test it for its practical suitability and aiming accuracy. However, the concrete decisions are nevertheless based on Art. 83 GDPR.

Art. 70 Para. 1 lit. k of the GDPR demands a harmonization of the fine setting within Europe. Therefore guidelines shall be elaborated. For this reason, the DSK draft will be brought into line with the concepts of other EU member states.

Also, at European level a European concept is currently being negotiated. This concept should then be laid down in a guideline, at least in principle. The DSK has also contributed its considerations on the assessment.

The fine concept will be discussed further on 6th and 7th November. After prior examination, a decision will be taken on whether the concept on the setting of fines shall be published.

Category: Data breach · EU · GDPR
Tags: , , ,

Apple wants to evaluate “Siri”-recordings again

14. October 2019

Apple wants to evaluate Siri-recordings again in the future. After it became public that Apple automatically saved the audio recordings of Siri entries and had some of them evaluated by employees of external companies, the company stopped this procedure. Although Apple stated that only less than 0.2 % of the queries were actually evaluated, the system received around 10 billion queries per month (as of 2018).

In the future, audio recordings from the Siri language assistant will be stored and evaluated again. This time, however, only after the user has consented. This procedure will be tested with the latest beta versions of the Apple IOS software for iPhone and iPad.

Apple itself hopes that many users will agree and thus contribute to the improvement of Siri. A later opt-out is possible at any time, but for each device individually. In addition, only apple’s own employees, who are – according to Apple -subject to strict confidentiality obligations ,will evaluate the recordings. Recordings that have been generated by an unintentional activation of Siri will be completely deleted.

In addition, a delete function for Siri-recordings is to be introduced. Users can then choose in their settings to delete all data recorded by Siri. If this deletion is requested within 24 hours of a Siri request, the respective recordings and transcripts will not be released for evaluation.

However, even if the user does not opt-in to the evaluation of his Siri recordings, a computer-generated transcript will continue to be created and kept by Apple for a certain period of time. Although these transcripts are to be anonymized and linked to a random ID, they still could be evaluated according to Apple.

Category: General
Tags: ,

China publishes provisions on the protection of personal data of children

10. October 2019

On 23 August 2019, the Cyberspace Administration of China published regulations on the cyber protection of personal data of children, which came into force on 1 October 2019. China thus enacted the first rules focusing exclusively on the protection of children’s personal data.

In the regulations, “children” refers to minors under the age of 14. This corresponds to the definition in the national “Information Security Technology – Personal Information Security Specification”.

The provisions regulate activities related to the collection, storage, use, transfer and disclosure of personal data of children through networks located on the territory of China. However, the provisions do not apply to activities conducted outside of China or to similar activities conducted offline.

The provisions provide a higher standard of consent than the Cybersecurity Law of China. To obtain the consent of a guardian, a network operator has to provide the possibility of refusal and expressly inform the guardian of the following:

  • Purpose, means and scope of collection, storage, use, transfer and disclosure of children’s personal information;
  • Storage location of children’s personal information, retention period and how the relevant information will be handled after expiration of the retention period;
  • Safeguard measures protecting children’s personal information;
  • Consequences of rejection by a guardian;
  • The channels and means of filing or reporting complaints; and
  • How to correct and delete children’s personal information.

The network operator also has to restrict internal access to children’s personal information. In particular, before accessing the information, personnel must obtain consent of the person responsible for the protection of children’s personal data or an authorised administrator.

If children’s personal data are processed by a third party processor, the network operator is obliged to carry out a security assessment of the data processor commissioned to process the children’s personal data. He also has to conclude an entrustment agreement with the data processor. The data processor is obliged to support the network operator in fulfilling the request of the guardian to delete the data of a child after termination of the service. Subletting or subcontracting by the data processor is prohibited.

If personal data of children is transferred to a third party, the network operator shall carry out a security assessment of the commissioned person or commission a third party to carry out such an assessment.

Children or their legal guardians have the right to demand the deletion of children’s personal data under certain circumstances. In any case, they have the right to demand the correction of personal data of children if they are collected, stored, used or disclosed by a network operator. In addition, the legal guardians have the right to withdraw their consent in its entirety.

In the event of actual or potential data breaches, the network operator is obliged to immediately initiate its emergency plan and take remedial action. If the violation has or may have serious consequences, the network operator must immediately report the violation to the competent authorities and inform the affected children and their legal guardians by e-mail, letter, telephone or push notification. Where it is challenging to send the notification to any data subject, the network operator shall take appropriate and effective measures to make the notification public. However, the rules do not contain a precise definition of the serious consequences.

In the event that the data breach is caused or observed by a data processor, the data processor is obliged to inform the network operator in good time.

USA and UK sign Cross Border Data Access Agreement for Criminal Electronic Data

The United States and the United Kingdom have entered into the first of its kind CLOUD Act Data Access Agreement, which will allow both countries’ law enforcement authorities to demand authorized access to electronic data relating to serious crime. In both cases, the respective authorities are permitted to ask the tech companies based in the other country, for electronic data directly and without legal barriers.

At the base of this bilateral Agreement stands the U.S.A.’s Clarifying Lawful Overseas Use of Data Act (CLOUD Act), which came into effect in March 2018. It aims to improve procedures for U.S. and foreign investigators for obtaining electronic information held by service providers in the other country. In light of the growing number of mutual legal assistance requests for electronic data from U.S. service providers, the current process for access may take up to two years. The Data Access Agreement can reduce that time considerably by allowing for a more efficient and effective access to data needed, while protecting the privacy and civil liberties of the data subjects.

The Cloud Act focuses on updating legal frameworks to respond to the growing technology in electronic communications and service systems. It further enables the U.S. and other countries to enter into a mutual executive Agreement in order to use own legal authorities to access electronic evidence in the other respective country. An Agreement of this form can only be signed by rights-respecting countries, after it has been certified by the U.S. Attorney General to the U.S. Congress that their laws have robust substansive and procedural protections for privacy and civil liberties.

The Agreement between the U.K. and the U.S.A. further assures providers that the requested disclosures are compatible with data protection laws in both respective countries.

In addition to the Agreement with the United Kingdom, there have been talks between the United States and Australia on Monday, reporting negotiations for such an Agreement between the two countries. Other negotiations have also been held between the U.S. and the European Commission, representing the European Union, in regards to a Data Access Agreement.

Category: General · UK · USA
Tags: , , , ,

Belgian DPA announces GDPR fine

7. October 2019

The Belgian data protection authority (Gegevensbeschermingsautoriteit) has recently imposed a fine of €10,000 for violating the General Data Protection Regulation (GDPR). The case concerns a Belgian shop that provided the data subject with only one opportunity to get a customer card, namely the  electronic identity card (eID). The eID is a national identification card, which contains several information about the cardholder, so the authority considers that the use of this information without the valid consent of the customer is disproportionate to the service offered.

The Authority had learnt of the case following a complaint from a customer. He was denied a customer card because he did not want to provide his electronic identity card. Instead, he had offered the shop to send his data in writing.

According to the Belgian data protection authority, this action violates the GDPR in several respects. On the one hand, the principle of data minimisation is not respected. This requires that the duration and the quantity of the processed data are limited by the controller to the extent absolutely necessary for the pursued purpose.

In order to create the customer card, the controller has access to all the data stored on the eID, including name, address, a photograph and the barcode associated with the national registration number. The Authority therefore believes that the use of all eID data is disproportionate to the creation of a customer card.

The DPA also considers that there is no valid consent as a legal basis. According to the GDPR, the consent must be freely given, specific and informed. However, there is no voluntary consent in this case, since no other alternative is offered to the customer. If a customer refuses to use his electronic ID card, he will not receive a customer card and will therefore not be able to benefit from the shops’ discounts and advantages.

In view of these violations, the authority has imposed a fine of €10,000.

Category: Belgian DPA · Belgium · GDPR · General
Tags: ,

CJEU rules pre-checked Cookie consent invalid

2. October 2019

The Court of Justice of the European Union (CJEU) ruled on Tuesday, October 1rst, that storing Cookies on internet users’ devices requires active consent. This decision concerns the implementation of widely spread pre-checked boxes, which has been decided to be insufficient to fulfill the requirements of a lawful consent under the General Data Protection Regulation (GDPR).

The case to be decided concerned a lottery for advertizing purposes initiated by Planet49 GmbH. During the participation process internet users were confronted with two information texts and corresponding checkboxes. Within the first information text the users were asked to agree to be contacted by other companies for promotional offers, by ticking the respective checkbox. The second information text required the user to consent to the installation of Cookies on their devices, while the respective checkbox had already been pre-checked. Therefore users would have needed to uncheck the checkbox if they did not agree to give their consent accordingly (Opt-out).

The Federal Court of Justice in Germany raised and referred their questions to the CJEU regarding whether such a process of obtaining consent could be lawful under the relevant EU jurisprudence, in particular whether valid consent could have been obtained for the storage of information and Cookies on users devices, in case of such mechanisms.

Answering the questions, the CJEU decided, referring to the relevant provisions of Directive 95/46 and the GDPR that require an active behaviour of the user, that pre-ticked boxes cannot constitute a valid consent. Furthermore, in a statement following the decision, the CJEU clarified that consent must be specific, and that users should be informed about the storage period of the Cookies, as well as about third parties accessing users’ information. The Court also said that the “decision is unaffected by whether or not the information stored or accessed on the user’s equipment is personal data.”

In consequence of the decision, it is very likely that at least half of all websites that fall into the scope of the GDPR will need to consider adjustments of their Cookie Banners and, if applicable, procedures for obtaining consent with regard to performance-related and marketing and advertising Cookies in order to comply with the CJEU’s view on how to handle Cookie usage under the current data protection law.

Cookies, in general, are small files which are sent to and stored in the browser of a terminal device as part of the website user’s visit on a website. In case of performance-related and marketing and advertising Cookies, the website provider can then access the information that such Cookies collected about the user when visiting the website on a further occasion, in order to, e.g., facilitate navigation on the internet or transactions, or to collect information about user behaviour.

Following the new CJEU decision, there are multiple possibilities to ensure a GDPR compliant way to receive users’ active consent. In any case it is absolutely necessary to give the user the possibility of actively checking the boxes themselves. This means that pre-ticked boxes are no longer a possibility.

In regard to the obligation of the website controller to provide the user with particular information about the storage period and third party access, a possible way would be to include a passage about Cookie information within the website’s Privacy Policy. Another would be to include all the necessary information under a seperate tab on the website containing a Cookie Policy. Furthermore, this information needs to be easily accessible by the user prior to giving consent, either by including the information directly within the Cookie Banner or by providing a link therein.

As there are various different options depending on the types of the used Cookies, and due to the clarification made by the CJEU, it is recommended to review the Cookie activities on websites and the corresponding procedures of informing about those activities and obtaining consent via the Cookie Banner.

Pages: 1 2 3 4 5 6 7 8 9 10 ... 38 39 40 Next
1 2 3 40