Spring Law Spring Law Spring Law Spring Law
  • Home
  • About
    • Our Approach
    • Our People
  • Services
    • Dispute Avoidance
    • General Counsel Advisory Services
    • Risk & Litigation Ready Audit
    • Employment & Consultancy Arrangements
    • Merger & Acquisition Risk Profiling
    • Rep Control
    • Dispute Resolution
    • Business Disputes
    • Personal Disputes
    • Investigations
    • Intelligence
    • Public Sector
    • Risk Control
    • Disputes Management
  • Insights
  • Contact
Spring Law Spring Law
  • Home
  • About
    • Our Approach
    • Our People
  • Services
    • Dispute Avoidance
    • General Counsel Advisory Services
    • Risk & Litigation Ready Audit
    • Employment & Consultancy Arrangements
    • Merger & Acquisition Risk Profiling
    • Rep Control
    • Dispute Resolution
    • Business Disputes
    • Personal Disputes
    • Investigations
    • Intelligence
    • Public Sector
    • Risk Control
    • Disputes Management
  • Insights
  • Contact
Feb 15
Facebook login screen

German court finds Facebook’s data collection was Illegal

  • 15 February 2018

Facebook’s failure to make people aware that it was collecting their data for advertising purposes was illegal, a German court has found.

The Berlin Regional Court ruled that Facebook did not obtain consent from its users to use their information for its advertising goals, in accordance with German data protection law.

The ruling was seen as a win for the Federation of German Consumer Organisation, who have been locked in battle with the social network since 2015, claiming it breached consumer protection law because data sharing settings were turned on by default.

“Facebook hides default settings that are not privacy-friendly in its privacy centre and does not provide sufficient information about this when users register,” said the federation’s litigation policy officer Heiko Dünkel. “This does not meet the requirement for informed consent.”

The tech giant stores information that a person has shared on their profile, through their activity on the website but also their web history while browsing other websites.

Facebook claims that users are made aware of what information it collects under its terms and conditions and that it allows people an easy way to manage their privacy settings.

But judges ruled that all five of default privacy settings, which were investigated after the consumer watchdog raised concerns, were not lawful, as they did not constitute consent. One example included default location services, which are already activated in the Facebook app with “ticks” already placed in boxes that allowed search engines to link to the user’s timeline.

The court found that a further eight clauses in Facebook’s terms of use were invalid. These included pre-formulated declarations of consent for Facebook to use the name and profile picture of users “for commercial, sponsored or related content” and to transfer their data to the US.

However, it did not find any fault with Facebook’s marketing as a “free” app. The watchdog objected to the use of the word because, according to Dünkel, “Consumers do pay to use Facebook. Maybe not in euros, but with their data. And this data is extremely valuable to the company.”

Facebook said it would appeal the judgement, but it has implications for incoming General Data Protection Regulations which will come into force in May.

“We are reviewing this recent decision carefully and are pleased that the court agreed with us on a number of issues. Our products and policies have changed a lot since this case was brought, and further changes to our terms and Data Policy are anticipated later this year in light of upcoming changes to the law,” a spokesman said.

“We work hard to ensure that our policies are clear and easy to understand, and that all aspects of the Facebook Service are in compliance with applicable law.”

Companies found to be in breach of GDPR face a maximum penalty of 4pc of global annual turnover or €20m (£17.77m), dependant on which is greater. The new laws will replace the EU’s Data Protection Act, granting more power to punish companies that fail to comply with new rules, which will allow individuals to withdraw consent over the information being used. Companies will need a paper trail that proves it collected personal information lawfully.

Facebook announced more “transparent” privacy tools in anticipation of the European crackdown at the beginning of 2018. Although it did not make it entirely clear how it would show people how it tracks them around other websites.

The latest transparency drive is one of several sweeping changes to how it communicates with users about its data collection, including a “privacy checkup” and privacy portal, all in response to incoming European data privacy laws.

In light of the new regulation, all eyes will be on Google, Twitter, Snapchat and Instagram, companies that have amassed huge sets of consumer data over the past years and will be expected to show exactly how they retrieved information, and whether each person agreed to their doing so.

  • Facebook
  • Twitter
  • Reddit
  • Pinterest
  • LinkedIn
  • E-Mail

Comments are closed.

Recent Posts

  • Scope of Business Interruption clauses in light of Covid-19 25 September 2020
  • Restructuring & Insolvency Update: Furlough schemes and the administration of companies 25 June 2020
  • Restructuring & Insolvency Update: The Corporate Insolvency and Governance Bill 15 June 2020
  • Commercial Loan Agreements: Does Covid-19 constitute a material change in circumstances? 1 June 2020
  • Vicarious liability for employee data breaches: the case of Morrison Supermarkets plc v Various Claimants 28 May 2020
LinkedIn icon
Crown Commercial Service Supplier logoAnnecto logoChambers UK logoThe Legal 500 UK logo

London | Chichester | Gibraltar

Pricing Complaints Legal Privacy Cookies

©2021 Spring Law Limited | Registered Company No. 5512395 | Website by Maroon Balloon & StudioMoo

We use cookies to improve your experience on our website. For information on cookies and how we use them, please see our Cookie Policy