Tag: consent

Appeal against record fine for GDPR violation in Poland dismissed

22. October 2020

On 10th September 2019 the Polish Data Protection Commissioner imposed a record fine in the amount of more than PLN 2,8 million or the equivalent of € 660.000 on the company Morele.net for violating the implementation of appropriate technical and organisational measures as well as the lack of verifiability of the prior consents to data processing. The Krakow-based company runs various online shops and stores customer data on a central database. According to the Personal Data Protection Office (UODO), there has been 2,2 million customers affected.

Starting point were especially two incidents at the end of 2018, when unauthorised persons got access to the customer database of the company and the contained personal data. The company notified the data breach to the UODO, which accused it particularly of violation of the confidentiality principle (Articles 5 (1) lit. f, 24 (1), 25 (1), 32 (1) lit. b, d, (2) GDPR) by failing to use sufficient technical and organisational measures to safeguard the data of its customers, such as a two-factor authentication. As claimed by the UODO, the selection of the authentication mechanism should always be preceded by an adequate risk analysis with a corresponding determination of protection requirements. The company did not adequately comply with this. However, it should have been sufficiently aware of the phishing risks as the Computer Emergency Response Team (CERT Polska) had already pointed it out.

In addition, the UODO accused the company of violation of the lawfulness, fairness, transparency and accountability principles (Articles 5 (1) lit. a, (2), 6 (1), 7 (1) GDPR) by not being able to prove that (where necessary) the personal data from installment applications had been processed on the basis of consents of data subjects. Furthermore, after a risk analysis, the company deleted the corresponding data from the database in December 2018, but according to the UODO, the deletion was not sufficiently documented.

When assessing the fine, there were many aspects which played a decisive role. Most of all, the extent of the violation (2,2 million customers) and the fact that the company processes personal data professionally in the course of its business activities and therefore has to apply a higher level of security. However, mitigating circumstances were also taken into account, such as the good cooperation with the supervisory authority, no previous ascertainable violations of the GDPR and no identifiable financial advantages for the company.

On 3rd September 2020, the Provincial Administrative Court (WSA) in Warsaw issued a judgment on Morele.net’s appeal against the decision. The WSA dismissed the appeal and considered that the decision on the fine imposed on the company was justified. Furthermore, the WSA stated that the UODO had correctly assessed the facts in the case concerned and considered that the fine imposed was high but within the limits of the law and justified by circumstances. It is expected that the company will lodge a complaint with the Supreme Administrative Court of Poland.

Apple’s new iOS Update will enhance Privacy Features

31. August 2020

At its Worldwide Developers Conference 2020 back in June, Apple announced new privacy features coming in a future iOS 14 update for its devices. These updates, coming in the fall, are supposed to include more control of sharing location data and indicators when an app is using the microphone or camera.

The updates mean that it will be further possible to limit how much location information is shared with apps, only allowing it to share approximate data rather than the devices precise location. Apple also introduced labels for app permissions to inform people how much data an app requests, before they even download them. The feature will show people those labels in two categories, on “Data Linked To You” and “Data Used to Track You“. However, this will have to be provided by the app developers themselves, leaving grey areas open.

“For food, you have nutrition labels,” said Erik Neuenschwander, Apple’s user privacy manager. “So we thought it would be great to have something similar for apps. We’re going to require each developer to self-report their practices.”

Further, the privacy updates also incorporate the Safari browser, allowing for a report on privacy while surfing the internet through the use of a “privacy report” button. It will allow the overview of all third-party trackers through one click, and allow the user to block them directly.

Apple also moved from the opt-out standard for apps using the user’s personal data to an opt-in scheme, requiring the active consent of the users in order to allow the use of their data.

While this is a positive development for all Apple users, Facebook states that it sees issues for small developers having to face these new privacy settings.

In a blog post, Facebook said it was making a change to its own apps, which in addition to its flagship app also include WhatsApp and Instagram, that would likely spare them from having to ask iPhone users for data-tracking permissions that many advertising industry insiders believe users will refuse. Facebook also stated it was making changes due to Apple’s new privacy rules that could hurt smaller developers that use a Facebook tool for serving apps in third-party apps.

Overall, Apple’s new privacy rules are a welcomed changes for its users, handing them further control over their own personal data.

German State Data Protection Commissioner imposes 1.2 million € GDPR fine

1. July 2020

The German State Data Protection Commissioner of Baden-Württemberg (“LfDI Ba-Wü”)  imposed a GDPR fine of 1.240.000€ on the German statutory health insurance provider AOK Baden-Württemberg (“AOK”). The fine was a result of the health insurance’s lack of technical and organisational measures pursuant to Art. 32 GDPR. It is the highest fine the LfDI Ba-Wü has ever imposed.

Between 2015 and 2019 the AOK organised lotteries on various occasions and collected personal data of the participants, including their contact details and current health insurance affiliations. The AOK wanted to use the data of the lottery participants for advertising purposes, insofar as the participants gave their consent to this. To ensure the security of processing, the AOK implemented internal guidelines and data protection training of their staff as technical and organisatioal measures. However, these measures were not sufficient to comply with Art. 32 GDPR because AOK staff used the personal data of more than 500 lottery participants for advertising purposes without their prior consent.

Following the investigation of the LfDI Ba-Wü, the AOK immediately stopped all marketing activities in order to revise their internal policies and processes against the GDPR. The LfDI Ba-Wü explained that in determining the extent of the fine, it considered the following mitigating factors:

  • the cooperation of the AOK with the Data Protection Authority,
  • the fact that the AOK as a statutory health insurance provider is an important part of the German healthcare system, and
  • the burdens of the current Corona-Pandemic on the healthcare system.

Finally, the Commissioner pointed out that technical and organisational measures must be regularly adjusted to the actual conditions of each processing activity, in order to ensure an adequate level of data protection in the long term.

Greek Data Protection Authority releases Guidance on Cookies

16. March 2020

On 25 February 2020, the Hellenic Data Protection Authority (DPA) published a guidance on Cookies and other tracking tools. Previously, the Authority had found that Greek websites and service providers have been largely failing to comply with the rules on the use of Cookies and other trackers set out by the ePrivacy Directive and the GDPR, and reaffirmed by the European Court of Justice’s ruling on Planet 49.

The guidance states that it will be relevant to HTTP/S Cookies, Flash Cookies, local storage applying to HTML 5, device fingerprinting, OS identifiers, and material identifiers.

The Greek DPA reiterated that, generally, providers are obliged to obtain the user’s consent if they are using any tracking tools – irrespective of whether the processing of personal data is taking place. It also outlined that technically necessary trackers are exempt from the obligation to consent. Furthermore, the guidance goes into detail on how information and consent can be made available on websites specifically.

Lastly, the Authority has given Greek website providers a grace period of two months to implement the provisions of this guidance and thereby become compliant with the European rules on tracking tools.

Advocate General: No Valid Cookie Consent When Checkbox Is Pre-ticked

25. March 2019

On 21 of March Maciej Szpunar, Advocate General of the European Court of Justice, delivered his Opinion in the case of Planet24 GmbH against Bundesverband Verbraucherzentralen und Vebraucherverbände – Verbaucherzentrale Bundesverband e.V. (Federal Association of Consumer Organisations). In the Opinion, Szpunar explains how to obtain valid consent for the use of cookies.

In the case in question, Planet24 GmbH has organised a lottery campaign on the internet. When registering to participate in the action lottery, two checkboxes appeared. The first checkbox, which did not contain a pre-selected tick, concerned permission for sponsors and cooperation partners to contact the participant in order to inform him of their offers. The second checkbox, which was already ticked off, concerned the consent to the setting of cookies, which evaluate the user’s surfing and usage behaviour.

The Federal Association held that the clauses used infringed german law, in particular Article 307 of the BGB, Article 7(2), point 2, of the UWG and Article 12 et seq. of the TMG and filed a lawsuit in 2014 after an unsuccessful warning.

In the course of the instances, the case ended up at the German Federal Supreme Court in 2017. The German Federal Court considers that the success of the case depends on the interpretation of Articles 5(3) and 2(f) of Directive 2002/58, read in conjunction with Article 2(h) of Directive 95/46, and of Article 6(1)(a) of Regulation 2016/679. For that reason, it asked the European Court of Justice the following questions for a preliminary ruling:

(1) Does consent given on the basis of a pre-ticked box meet the requirements for valid consent under the ePrivacy Directive, the EU Data Protection Directive and the EU General Data Protection Regulation (the GDPR)?

(2) What information does the service provider have to provide to the user and does this include the duration of the use of cookies and whether third parties have access to the cookies?

According to the Advocate General, there is no valid consent if the checkbox is already ticked. In such case, the user must remove the tick, i.e. become active if he/she does not agree to the use of cookies. However, this would contradict the requirement of an active act of consent by the user. It is necessary for the user to explicitly consent to the use of cookies. Therefore, it is also not sufficient if one checkbox is used to deal with both the use of cookies and participation in the action lottery. Consent must be given separately. Otherwise the user is not in the position to freely give a separate consent.

In addition, Szpunar explains that the user must be provided with clear and comprehensive information that enables the user to easily assess the consequences of his consent. This requires that the information provided is unambiguous and cannot be interpreted. For this purpose, the information must contain details such as the duration of the operation of cookies, as well as whether third parties have access to the cookies.

WP29 Guidelines on the notion of consent according to the GDPR – Part 1

26. January 2018

According to the GDPR, consent is one of the six lawful bases mentioned in Art. 6. In order for consent to be valid and compliant with the GDPR it needs to reflect the data subjects real choice and control.

The Working Party 29 (WP 29) clarifies and specifies the “requirements for obtaining and demonstrating” such a valid consent in its Guidelines released in December 2017.

The guidelines start off with an analysis of Article 4 (11) of the GDPR and then discusses the elements of valid consent. Referring to the Opinion 15/2011 on the definition of consent, “obtaining consent also does not negate or in any way diminish the controller’s obligations to observe the principles of processing enshrined in the GDPR, especially Article 5 of the GDPR with regard to fairness, necessity and proportionality, as well as data quality.”

The WP29 illustrates the elements of valid consent, such as the consent being freely given, specific, informed and unambiguous. For example, a consent is not considered as freely given if a mobile app for photo editing requires the users to have their GPS location activated simply in order to collect behavioural data aside from the photo editing. The WP29 emphasizes that consent to processing of unnecessary personal data “cannot be seen as a mandatory consideration in exchange for performance.”

Another important aspect taken into consideration is the imbalance of powers, e.g. in the matter of public authorities or in the context of employment. “Consent can only be valid if the data subject is able to exercise a real choice, and there is no risk of deception, intimidation, coercion or significant negative consequences (e.g. substantial extra costs) if he/she does not consent. Consent will not be free in cases where there is any element of compulsion, pressure or inability to exercise free will. “

Art. 7(4) GDPR emphasizes that the performance of a contract is not supposed to be conditional on consent to the processing of personal data that is not necessary for the performance of the contract. The WP 29 states that “compulsion to agree with the use of personal data additional to what is strictly necessary limits data subject’s choices and stands in the way of free consent.” Depending on the scope of the contract or service, the term “necessary for the performance of a contract… …needs to be interpreted strictly”. The WP29 lays down examples of cases where the bundling of situations is acceptable.

If a service involves multiple processing operations or multiple purposes, the data subject should have the freedom to choose which purpose they accept. This concept of granularity requires the purposes to be separated and consent to be obtained for each purpose.

Withdrawal of consent has to be possible without any detriment, e.g. in terms of additional costs or downgrade of services. Any other negative consequence such as deception, intimidation or coercion is also considered to be invalidating. The WP29 therefore suggests controllers to ensure proof that consent has been given accordingly.

(will be soon continued in Part 2)

ICO fines bank and ad firm for illegal marketing

13. October 2017

The Information Commissioner’s Office (ICO) has fined Vanquis Bank and advertising firm Xerpla £125,000 in total.

Vanquis Bank had sent over a million spam text messages and spam emails promoting its credit card. As the recipients had not given consent for such messages, Vanquis Bank’s marketing campaign was deemed illegal and a fine of £75,000 was imposed on the Bradford based bank.

Ad firm Xerpla had sent over a million spam emails promoting various products. The ad firm was fined £50,000 for not having the right consent of the recipients as it was not clear and specific enough.

“People need to be properly informed about what they are consenting to. Telling them their details could be passed to ‘similar organisations’ or ‘selected third parties’ cannot be relied upon as specific consent,” ICO Head of Enforcement Steve Eckersley said, adding, “these firms should have taken responsibility for ensuring they had obtained clear and specific consent for the sending of the messages. They didn’t and that is unacceptable.”