Tim Hortons Illegally Collected Data, Now It Might Pay Off Users With Donuts And Coffee

A leading restaurant chain has been accused of collecting location data of its users, and a proposed class action lawsuit settlement could see those affected being paid off with free food. Here are the details.

What Happened: Canadian fast food company Tim Hortons, which is owned by Restaurant Brands International (NYSE: QSR), was accused of using its mobile app to collect location data from Canadians.

A proposed settlement from a class action lawsuit has resulted in the company offering around $9 Canadian in free food, via a free hot beverage and free baked good, according to a report from Vice.

The report cites a Twitter post and screenshots from a user that laid out details of the settlement.

“You are receiving this email in connection with a proposed settlement, subject to Court approval, of a national class action lawsuit,” the email in the screenshot reads.

A spokesperson appeared to confirm the validity of the email telling Vice, eligible app users will receive a “free hot beverage and a free baked good.”

“We’re pleased to have reached a proposed settlement, subject to Court approval, in the four class action lawsuits in Quebec, British Columbia and Ontario involving the Tim Hortons app,” a spokesperson for Tim Hortons told Vice.

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Why It’s Important: The class action lawsuit stemmed from accusations that the Tim Hortons mobile app tracked users’ movement “every few minutes” including when the app was closed. The app said it would track user locations, but is accused of misleading users.

“Tim Hortons clearly crossed the line by amassing a huge amount of highly sensitive information about its customers,” Canada’s privacy commissioner Daniel Therrien said. “Following people’s movements every few minutes of every day was clearly an inappropriate form of surveillance.”

The company planned on using location data for targeted advertising.

Tim Hortons has committed to permanently deleting location data from its members, according to the report.

The settlement is not Tim Hortons admitting it did anything wrong, but could be a way to avoid paying out huge fines through a potential court ruling.

The spokesperson told Vice they believe it is a “fair settlement” and look forward to the settlement being approved.