While a recent proposed settlement involving the Tim Hortons app may have raised public awareness of privacy protections, consumers are left to fend for themselves, one tech expert says.
On July 29, Tim Hortons reached a proposed settlement in multiple class-action lawsuits alleging the restaurant’s mobile app violated customer privacy.
It comes after federal and provincial privacy watchdogs found the app was breaking the law by collecting massive amounts of location data from its users to target 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 were caught doing as well,” technology and cybersecurity analyst Ritesh Kotak told CTV News Channel on Sunday .
As described in a report released June 1 by the Office of the Privacy Commissioner of Canada, investigators found that the app asked for permission to access a device’s geolocation, but misled many users into believing that the information would only be accessible when the app was in use . Instead, the app tracks users while the device is 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, a law that aims to strengthen consumer privacy protections. Introduced in mid-June, it is currently working its way through parliament.
But as it stands now, consumers are on their own when it comes to protecting their privacy, he said.
Tim Hortons plans to offer free coffee and a donut to affected customers as part of the proposed settlement, although the settlement still requires court approval.
The company will also permanently delete any geolocation information it may have collected between April 1, 2019 and 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 batter, plus tax.
A hearing to consider the proposed settlement is scheduled to take place in a Quebec court on September 6.
“Think about how much money Tim Hortons has actually made by being able to bring that data together and then derive some insights based on consumer behavior,” Kotak said.
“That kind of works out to $8.50 retail for the average person, and I think most of us would agree that seems a little unreasonable.”
With files from The Canadian Press
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