Tim Hortons Reaches Proposed Settlement in Mobile App Class Action

Tim Hortons says it has reached a proposed settlement in several class action lawsuits alleging the restaurant’s mobile app breached customer privacy, which would see the restaurant offer free coffee and a donut to affected users.

The company says the settlement, negotiated with the legal teams involved in the lawsuits, still requires court approval.

The coffee and donut chain says the deal would see eligible app users receive a free hot drink and baked goods.

Tim Hortons says in court documents it would also permanently delete any geolocation information it may have collected between April 1, 2019 and September 30, 2020, and require third-party service providers to do the same.

The proposed settlement comes after an investigation by federal and provincial privacy watchdogs found the mobile ordering app violated the law by collecting large amounts of location information from customers.

In a report released last month, privacy commissioners said people who downloaded the Tim Hortons app were tracking and recording their movements every few minutes, even when the app was not open. on their phone.

The investigation was launched after National Post reporter James McLeod obtained data showing the app on his phone had tracked his location more than 2,700 times in less than five months.

In a statement, Tim Hortons said it was pleased to have reached a proposed settlement in the four class action lawsuits filed in Quebec, British Columbia and Ontario.

“All parties agree that this is a fair settlement and we look forward to the Superior Court of Quebec’s decision on the proposal,” the company said in a statement.

“We are confident that pending approval of the settlement by the Quebec court, the courts in British Columbia and Ontario will recognize the settlement.”

The company said the allegations raised in the class action lawsuits have not been proven in court and the settlement is not an admission of wrongdoing.

Tim Hortons said it will email customers on Friday notifying them of the proposed settlement.

According to court documents, Tim Hortons says the retail value of a free hot drink is $6.19, while the value of a bakery item is $2.39 plus tax.

Customers would receive credit for items through a coupon or on the Tim Hortons app, documents show.

A hearing has been scheduled in a Quebec court for September 6 to consider the proposed settlement.

The company says details about the distribution of the free hot drink and baked goods would be provided if the court approves the settlement.

The Canadian Press

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Tim Hortons

Lance B. Holton