Tag: personal data

AEPD issues highest fine for GDPR violations

5. March 2021

The Spanish Data Protection Authority, the Agencia Española de Protección de Datos (AEPD), imposed a fine of EUR 6.000.000 on CaixaBank, Spain’s leading retail bank, for unlawfully processing customers’ personal data and not providing sufficient information regarding the processing of their personal data. It is the largest financial penalty ever issued by the AEPD under the GDPR, surpassing the EUR 5.000.000 fine imposed on BBVA in December 2020 for information and consent failures.

In the opinion of the AEPD, CaixaBank violated Art. 6 GDPR in many regards. The bank had not provided sufficient justification of the legal basis for the processing activities, in particular with regard to those based on the company’s legitimate interest. Furthermore, deficiencies had been identified in the processes for obtaining customers’ consent to the processing of their personal data. The bank had also failed to comply with the requirements established for obtaining valid consent as a specific, unequivocal and informed expression of intention. Moreover, the AEPD stated that the transfer of personal data to companies within the CaixaBank Group was considered an unauthorized disclosure. According to Art. 83 (5) lit. a GDPR, an administrative fine of EUR 4.000.000 EUR was issued.

Additionally, the AEPD found that CaixaBank violated Art. 13, 14 GDPR. The bank had not complied with the information obligations since the information regarding the categories of personal data concerned had not been sufficient and the information concerning the purposes of and the legal basis for the processing had been missing entirely. What’s more, the information provided in different documents and channels had not been consistent. The varying information concerned data subjects’ rights, the possibility of lodging a complaint with the AEPD, the existence of a data protection officer and his contact details as well as data retention periods. Besides, the AEPD disapproved of the use of inaccurate terminology to define the privacy policy. Following Art. 83 (5) lit. b GDPR, a fine of EUR 2.000.000 was imposed.

In conclusion, the AEPD ordered CaixaBank to bring its data processing operations into compliance with the legal requirements mentioned within six months.

Dutch data scandal: illegal trade of COVID-19 patient data

19. February 2021

In recent months, a RTL Nieuws reporter Daniël Verlaan has discovered widespread trade in the personal data of Dutch COVID-19 test subjects. He found ads consisting of photos of computer screens listing data of Dutch citizens. Apparently, the data had been offered for sale on various instant messaging apps such as Telegram, Snapchat and Wickr. The prices ranged from €30 to €50 per person. The data included home addresses, email addresses, telephone numbers, dates of birth and BSN identifiers (Dutch social security number).

The personal data were registered in the two main IT systems of the Dutch Municipal Health Service (GGD) – CoronIT, containing details about citizens who took a COVID-19 test, and HPzone Light, a contact-tracing system, which contains the personal data of people infected with the coronavirus.

After becoming aware of the illegal trade, the GGD reported it to the Dutch Data Protection Authority and the police. The cybercrime team of the Midden-Nederland police immediately started an investigation. It showed that at least two GGD employees had maliciously stolen the data, as they had access to the official Dutch government COVID-19 systems and databases. Within 24 hours of the complaint, two men were arrested. Several days later, a third suspect was tracked down as well. The investigation continues, since the extent of the data theft is unclear and whether the suspects in fact managed to sell the data. Therefore, more arrests are certainly not excluded.

Chair of the Dutch Institute for Vulnerability Disclosure, Victor Gevers, told ZDNet in an interview:

Because people are working from home, they can easily take photos of their screens. This is one of the issues when your administrative staff is working from home.

Many people expressed their disapproval of the insufficient security measures concerning the COVID-19 systems. Since the databases include very sensitive data, the government has a duty to protect these properly in order to prevent criminal misuse. People must be able to rely on their personal data being treated confidentially.

In a press release, the Dutch police also raised awareness of the cybercrime risks, like scam or identity fraud. Moreover, they informed about the possibilities of protection against such crimes and the need to report them. This prevents victims and allows the police to immediately track down suspects and stop their criminal practices.

WhatsApp’s privacy policy update halted

22. January 2021

Already at the beginning of December 2020, first indications came up signaling that WhatsApp will change its terms of service and privacy policy. Earlier this year, users received the update notice when launching the app on their device. It stated that the new terms concern additional information on how WhatsApp processes user data and how businesses can use Facebook hosted services to store and manage their WhatsApp chats. The terms should be accepted by February 8th, 2021, to continue using the chat service. Otherwise, the deletion of the account was suggested, because it will not be possible to use WhatsApp without accepting the changes. The notice has caused all sorts of confusion and criticism, because it has mistakenly made many users believe that the agreement allows WhatsApp to share all collected user data with company parent Facebook, which had faced repeated privacy controversies in the past.

Users’ fears in this regard are not entirely unfounded. As a matter of fact, outside the EU, WhatsApp user data has already been flowing to Facebook since 2016 – for advertising purposes, among other things. Though, for the EU and the United Kingdom, other guidelines apply without any data transfer.

The negative coverage and user reactions caused WhatsApp to hastily note that the changes explicitly do not affect EU users. Niamh Sweeney, director of policy at WhatsApp, said via Twitter that it remained the case that WhatsApp did not share European user data with Facebook for the purpose of using this data to improve Facebook’s products or ads.

However, since the topic continues to stir the emotions, WhatsApp felt compelled to provide clarification with a tweet and a FAQ. The statements make it clear once again that the changes are related to optional business features and provide further transparency about how the company collects and uses data. The end-to-end encryption, with which chat content is only visible to the participating users, will not be changed. Moreover, the new update does not expand WhatsApp’s ability to share data with Facebook.

Nevertheless, despite all efforts, WhatsApp has not managed to explain the changes in an understandable way. It has even had to accept huge user churn in recent days. The interest in messenger alternatives has increased enormously. Eventually, the public backlash led to an official announcement that the controversial considered update will be delayed until May 15th, 2021. Due to misinformation and concern, users shall be given more time to review the policy on their own in order to understand WhatsApp’s privacy and security principles.

Admonition for revealing a list of people quarantined in Poland

27. November 2020

The President of the Personal Data Protection Office in Poland (UODO) imposed an admonition on a company dealing with waste management liable for a data breach and ordered to notify the concerned data subjects. The admonition is based on a violation of personal data pertaining to data subjects under medical quarantine. The city name, street name, building/flat number and the fact of remaining under quarantine of the affected data subjects have been provided by the company to unauthorized recipients. The various recipients were required to verify whether, in a given period, waste was to be collected from places determined in the above-mentioned list.

The incident already happened in April 2020. Back then, a list of data subjects was made public, containing information on who had been quarantined by the administrative decision of the District Sanitary-Epidemiological Station (PPIS) in Gniezno as well as information on quarantined data subjects in connection with crossing the country border and on data subjects undergoing home isolation due to a confirmed SARS-CoV-2 infection. After becoming aware of the revelation, the Director of PPIS notified the relevant authorities – the District Prosecutor’s Office and the President of UODO – about the incident.

PPIS informed them that it had carried out explanatory activities showing that the source of disclosure of these data was not PPIS. These data were provided to the District Police Headquarters, the Head of the Polish Post Office, Social Welfare Centres and the Headquarters of the State Fire Service. Considering the fact that these data had been processed by various parties involved, it was necessary to establish in which of them the breach may have occurred.

UODO took steps to clarify the situation. In the course of the proceedings, it requested information from a company dealing with waste management being one of the recipients of the personal data. The company, acting as the data controller, had to explain whether, when establishing the procedures related to the processing of personal data, it had carried out an assessment of the impact of the envisaged processing operations on the protection of personal data according to Art. 35 GDPR. The assessment persists in an analysis of the distribution method in electronic and paper form in terms of risks related to the loss of confidentiality. Furthermore, the data controller had to inform UODO about the result of this analysis.

The data controller stated that it had conducted an analysis considering the circumstances related to non-compliance with the procedures in force by data processors and circumstances related to theft or removal of data. Moreover, the data controller expressed the view that the list, received from the District Police Headquarters, only included administrative (police) addresses and did not contain names, surnames and other data allowing the identification of a natural person. Thus, the GDPR would not apply, because the data has to be seen as anonymized. However, from the list also emerged the fact that residents of these buildings/flats were placed in quarantine, which made it possible to identify them. It came out that the confidentiality of the processed data had been violated in the course of the performance of employee duties of the data processor, who had left the printed list on the desk without proper supervision. During this time, another employee had recorded the list in the form of a photo and had shared it with another person.

Following the review of the entirety of the collected material in this case, UODO considered that the information regarding the city name, street name, building/flat number and placing a data subject in medical quarantine, constitute personal data within the meaning of Art. 4 (1) GDPR, while the last comprises a special category of personal data concerning health according to Art. 9 (1) GDPR. Based on the above, it is possible to identify the data subjects, and therefore the data controller is bound to the obligations arising from the GDPR.

In the opinion of UODO, the protective measures indicated in the risk analysis are general formulations, which do not refer to specific activities undertaken by authorized employees. The measures are insufficient and inadequate to the risks of processing special categories of data. In addition, the data controller should have considered factors, such as recklessness and carelessness of employees and a lack of due diligence.

According to Art. 33 (1) GDPR, the data controller shall without undue delay and, where feasible, not later than 72 hours after having become aware of the data breach, notify it to the competent supervisory authority. Moreover, in a situation of high risk to the rights and freedoms of the data subjects, resulting from the data breach (which undoubtedly arose from the disclosure), the data controller is obliged to inform the data subject without undue delay in accordance with Art. 34 (1) GDPR. Despite this, the company did not report the infringement, neither to the President of UODO nor to the concerned data subjects.

European Commission issues draft on Standard Contractual Clauses

18. November 2020

A day after the European Data Protection Board (EDPB) issued its recommendations on supplementary measures, on November 12th the European Commission issued a draft on implementing new Standard Contractual Clauses (SCCs) for data transfers to non-EU countries (third countries). The draft is open for feedback until December 10th, 2020, and includes a 12-month transition period during which companies are to implement the new SCCs. These SCCs are supposed to assist controllers and processors in transferring personal data from an EU-country to a third-country, implementing measures that guarantee GDPR-standards and regarding the Court of Justice of the European Union’s (CJEU) “Schrems II” ruling.

The Annex includes modular clauses suitable for four different scenarios of data transfer. These scenarios are: (1) Controller-to-controller-transfer; (2) Controller-to-processor-transfer; (3) Processor-processor-transfer; (4) Processor-to-controller-transfer. Newly implemented in these SCCs are the latter two scenarios. Since the clauses in the Annex are modular, they can be mixed and matched into a contract fitting the situation at hand. Furthermore, more than two parties can adhere to the SCC and the modular approach even allows for additional parties to accede later on.

The potential of government access to personal data is distinctly addressed, since this was a main issue following the “Schrems II” ruling. Potential concerns are met by implementing clauses that address how the data importer must react when laws of the third country impinge on his ability to comply with the contract, especially the SCCs, and how he must react in case of government interference.  Said measures include notifying the data exporter and the data subject of any government interference, such as legally binding requests of access to personal data, and, if possible, sharing further information on these requests on a regular basis, documenting them and challenging them legally. Termination clauses have been added, in case the data importer cannot comply further, e.g. because of changes in the third country’s law.

Further clauses regard matters such as data security, transparency, accuracy and onwards transfer of personal data, which represent issues that have all been tackled in the older SCCs, but are to be updated now.

Poland: Addresses of judges, politicians and pro-life activists published on Twitter

12. November 2020

In recent days, social networks in Poland have teemed with posts containing private addresses and telephone numbers of judges of the Constitutional Tribunal, politicians and activists openly supporting the abortion sentence. In conjunction with the publication of the above on Twitter, the President of the Personal Data Protection Office (UODO) took immediate steps to protect the personal data and privacy of these persons.

Background to this was the judgement of the Constitutional Tribunal repealing the provisions allowing abortion in cases of, for example, serious genetic defects or severe impairment of the human fetus. This provoked resistance from a part of Polish society and led to a street revolution of “liberal” men and women. Unfortunately, the agitation turned into invectives, destruction of property, public disorder and personal arguments. As a result, personal data of people supporting the prohibition of abortion have been shared thousands of times on all social media too. For this reason, numerous protesters appeared at the indicated houses, covered the walls of the surrounding buildings with vulgar inscriptions, and the addressees began to receive packages, e.g. with a set of hangers.

On October 29th, 2020 the President of the UODO responded to the case:

Publishing private addresses and contact details of pro-life activists, politicians and judges by users of the Twitter social network is an action leading to the disclosure of a wide sphere of privacy, and thus posing threats to health and life, such as possible acts of violence and aggression directed against these people and their family members.

The announcement stated that the President of the UODO requested an immediate procedure by the Irish supervisory authority, which is responsible for the processing of personal data via Twitter. Pointing out the enormous scale of threats, he indicated the need to verify the response time to reported irregularities and the possibility of introducing automated solutions to prevent the rapid furtherance of such content by other portal users. He also notified the law enforcement authorities that Twitter users had committed a crime consisting in the processing of personal data without a legal basis. The lawfulness had neither been guaranteed by consent according to Art. 6 (1) lit. a GDPR nor legitimate interests pursuant to Art. 6 (1) lit. f GDPR or any other legal basis. Thus, the processing has to be seen as illegitimate as also stated by the President of the UODO. The law enforcement authorities will be obliged to examine and document both the scope of personal data disclosed in a way that violates the principles of personal data protection and to determine the group of entities responsible for unlawful data processing. The President of the UODO also applied to the Minister of Justice – Public Prosecutor General for placing this case under special supervision due to the escalation of conflict and aggression, which pose a high risk of violating the life interests of both people whose data is published on social media and their family members.

In conclusion, the President of the UODO added:

The intensification of actions of all competent authorities in this matter is necessary due to the unprecedented nature of the violations and the alarming announcements of disclosing the data of more people, as well as the deepening wave of aggression.

Decision to fine the Norwegian Public Roads Administration

23. October 2020

The Norwegian Data Protection Authority (Datatilsynet) has issued the Norwegian Public Roads Administration (Statens vegvesen) a fine of EUR 37.400 (NOK 400.000) for improprieties related to the use of the monitoring system installed on toll ways in Norway. They concerned processing personal data for purposes that were noncompliant with the originally stated and for not erasing video recordings after 7 days from their registration.

The penalized entity is the controller of a system processing personal data obtained from the area of ​​toll roads in Norway. This system records personal data which especially enable the identification of vehicles (and hence their owners) that pass through public toll stations. The primary purpose of processing these personal data was to ensure safety on public roads and to optimize the operation of the tunnel and drawbridges in the county Østfold. The Norwegian Public Roads Administration however, used the recordings particularly in order to document improper fulfilments of concluded contracts by certain subjects. According to the Norwegian Data Protection Authority, such procedure is unlawful and not compliant with the originally stated purposes.

The Norwegian Public Roads Administration was also accused of infringements related to deletion of personal data in due time. In accordance with Norwegian regulations, recordings from monitoring (and thus personal data) may be stored until the reason for its storage ceases, but no longer than 7 days from recording the material. In the course of proceedings it turned out that the monitoring system did not have the function of deleting personal data at all. Therefore, the Norwegian Public Roads Administration was not able to fulfil its obligation according to Art. 17 GDPR. The lack of this functionality additionally indicates that the controller, while implementing the monitoring system, also omitted the requirements specified in Art. 25 GDPR.

Taking into account these circumstances, the Norwegian Data Protection Authority stated a violation of the mentioned GDPR regulations.

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.

Indonesian President introduces a Proposal for a national Data Protection Law

5. February 2020

On 28 January 2020, Indonesian President Joko Widodo introduced a draft data protection law to the Parliament of Indonesia. When the bill passes through Parliament, Indonesia will be the fifth country in Southeast Asia to have a national data protection law, following Singapore, Malaysia, Thailand and the Philippines.

The proposal has numerous parallels to the European GDPR. It grants an array of data subject rights, like the right to access, the right to erasure and the right to restrict processing of personal data. The bill also contains a broad definition of processing and the general principle of consent, whilst allowing the processing of personal data for the performance of a contract, for compliance with a legal obligation, or for the purposes of legitimate interests.

Interestingly, the bill categorises violations against the data protection rules as criminal offenses and punishes intentional unlawful processing with up to 7 years of criminal imprisonment or punitive fines of up to 70 billion Indonesian Rupiah (4.6 million Euros). If the offender of the law is a corporation, the management or beneficiary owner can be held liable and face a prison sentence.

The Indonesian Minister of Communications and Information stresses the importance of the new date protection bill for the data sovereignty of individuals and hopes for opportunities for innovation and business in Indonesia.

Amazon lets Alexa recordings evaluate by timeworkers in home-office

5. August 2019

According to a report by German newspaper “Welt am Sonntag”, Amazon has Alexa’s voice recordings listened to not only by its own employees, but also by Polish temporary workers.

For some time now, Amazon has been the subject of criticism because the recordings of the Alexa language assistant are listened to and typed in by employees in order to improve speech recognition. For a long time, however, the users were unaware of this long-standing practice.

It has now become known that temporary workers in the home office listen to and evaluate the recordings using a remote work program. Until recently, a Polish recruitment agency advertised “teleworking all over the country”, although Amazon had previously assured that the voice recordings would only be evaluated in specially protected offices. However, one of the Polish temporary workers stated that many of them would work from home and that among the records were personal data such as names or places that allowed conclusions to be drawn about the person.

Upon request, Amazon confirmed the research results. A spokesman said that some employees were allowed to work from other locations than the Amazon offices, but that particularly strict rules would have to be observed. In particular, working in public places is not allowed.

On the same day, the online job advertisements were deleted and Amazon offered a new data protection option. Users can now explicitly object and block their recording for post-processing by Amazon employees.

Other language assistants have also been or are to be suspended from language evaluation, at least for European users. According to Google, around 0.2 % of the recordings are listened to subsequently, while Apple and Amazon say it is less than 1 %. Google already deactivated the function three months ago and Apple also wants to suspend the evaluation and explicitly ask its users later whether an evaluation may be resumed.

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