German court rules Facebook use of personal data illegal

A German consumer rights group said on Monday that a court had
found Facebook’s (FB.O) use of personal data to be illegal because
the U.S. social media platform did not adequately secure the
informed consent of its users.

The verdict, from a Berlin regional court, comes as Big Tech
faces increasing scrutiny in Germany over its handling of sensitive
personal data that enables it to micro-target online
advertising.

The Federation of German Consumer Organisations (vzvb) said that
Facebook’s default settings and some of its terms of service were
in breach of consumer law, and that the court had found parts of
the consent to data usage to be invalid.

“Facebook hides default settings that are not privacy-friendly
in its privacy center and does not provide sufficient information
about it when users register,” said Heiko Duenkel, litigation
policy officer at the vzvb.

“This does not meet the requirement for informed consent.” The
vzvb posted a copy of the ruling on its website. A court
spokesperson confirmed that a judgment had been handed down but
declined further comment.

FACEBOOK TO APPEAL

Facebook said it would appeal, even though several aspects of
the court judgment had been in its favor. In a statement, it said
it had already made significant changes to its terms of service and
data protection guidelines since the case was first brought in
2015.

“We are working hard to ensure that our guidelines are clear and
easy to understand, and that the services offered by Facebook are
in full accordance with the law,” Facebook said.

Further, Facebook would in the meantime update its data
protection guidelines and its terms of service so that they comply
with new European Union-wide rules that are due to enter force in
June.

Facebook, which counts more than 2 billion users worldwide,
already faces scrutiny from Germany’s competition authorities over
its handling of its users’ personal data.

The Federal Cartel Office, in an interim update on an
investigation into Facebook, said in December that it objected to
the way the company gains access to third-party data when an
account is opened.

This includes tapping information from its own WhatsApp and
Instagram products – as well as how it tracks which sites its users
access.

One concern highlighted by the consumer rights group was that,
in Facebook’s app for smartphones, a service was pre-activated that
revealed the user’s location to the person they were chatting
to.

Also, in the privacy settings, ticks were already placed in
boxes that allowed search engines to link to the user’s timeline,
meaning that anyone would be able quickly and easily to find a
user’s profile.

“The judges ruled that all five of the default settings on
Facebook that vzvb complained about are invalid,” the group said in
a statement, adding that several other of Facebook’s terms of use
were found to be illegal.

A German consumer rights group said on Monday that a court had
found Facebook’s (FB.O) use of personal data to be illegal because
the U.S. social media platform did not adequately secure the
informed consent of its users.

The verdict, from a Berlin regional court, comes as Big Tech
faces increasing scrutiny in Germany over its handling of sensitive
personal data that enables it to micro-target online
advertising.

The Federation of German Consumer Organisations (vzvb) said that
Facebook’s default settings and some of its terms of service were
in breach of consumer law, and that the court had found parts of
the consent to data usage to be invalid.

“Facebook hides default settings that are not privacy-friendly
in its privacy center and does not provide sufficient information
about it when users register,” said Heiko Duenkel, litigation
policy officer at the vzvb.

“This does not meet the requirement for informed consent.” The
vzvb posted a copy of the ruling on its website. A court
spokesperson confirmed that a judgment had been handed down but
declined further comment.

FACEBOOK TO APPEAL

Facebook said it would appeal, even though several aspects of
the court judgment had been in its favor. In a statement, it said
it had already made significant changes to its terms of service and
data protection guidelines since the case was first brought in
2015.

“We are working hard to ensure that our guidelines are clear and
easy to understand, and that the services offered by Facebook are
in full accordance with the law,” Facebook said.

Further, Facebook would in the meantime update its data
protection guidelines and its terms of service so that they comply
with new European Union-wide rules that are due to enter force in
June.

Facebook, which counts more than 2 billion users worldwide,
already faces scrutiny from Germany’s competition authorities over
its handling of its users’ personal data.

The Federal Cartel Office, in an interim update on an
investigation into Facebook, said in December that it objected to
the way the company gains access to third-party data when an
account is opened.

This includes tapping information from its own WhatsApp and
Instagram products – as well as how it tracks which sites its users
access.

One concern highlighted by the consumer rights group was that,
in Facebook’s app for smartphones, a service was pre-activated that
revealed the user’s location to the person they were chatting
to.

Also, in the privacy settings, ticks were already placed in
boxes that allowed search engines to link to the user’s timeline,
meaning that anyone would be able quickly and easily to find a
user’s profile.

“The judges ruled that all five of the default settings on
Facebook that vzvb complained about are invalid,” the group said in
a statement, adding that several other of Facebook’s terms of use
were found to be illegal.