On July 29, Tim Hortons reached a proposed settlement in multiple class-action lawsuits alleging that the restaurant’s mobile app violated customer privacy. It comes after federal and state privacy watchdogs found the app was breaking the law by collecting massive amounts of location data from its users for targeted advertising. “If you’re collecting points and getting free stuff, if you’re not paying for that product, you’re the product, and that’s exactly what happened here and what other apps have been caught doing,” tech and cybersecurity analyst Ritesh Kotak told CTV News Channel on Sunday. As detailed in a report released June 1 by the Office of the Privacy Commissioner of Canada, researchers found the app asked for permission to access a device’s geographic location, but misled many users into thinking the information would only be accessible when the application was in use. Instead, the app tracked users while the device was on. Kotak said users can turn off location tracking on their devices and that he personally likes to use different email addresses for different apps. He also pointed to Bill C-27, legislation aimed at strengthening consumer privacy protections. It was introduced in mid-June and is currently going through Parliament. But as it stands, users are on their own when it comes to protecting their privacy, he said. Tim Hortons plans to offer free coffee and donuts to affected users as part of the proposed settlement, though the deal still requires court approval. The company will also permanently delete any geolocation information it may have collected from April 1, 2019 to September 30, 2020 and direct third-party services to do the same. Overall, Tim Hortons said the retail value of a free hot drink is $6.19 and $2.39 for a baked good, plus tax. A hearing to consider the proposed settlement is scheduled to take place in a Quebec court on September 6. “Think how much money Tim Hortons has made by being able to collect that data and then derive some insights based on consumer behavior,” Kotak said. “That kind of retails at $8.50 for the average person, and I think most of us would agree that seems a little unreasonable.” With files from The Canadian Press
