Tim Hortons offers coffee and doughnut as proposed settlement in class action lawsuit

TORONTO –

Tim Hortons has reached a proposed settlement in a number of class motion lawsuits alleging the restaurant’s cellular app violated buyer privateness, which might see the restaurant supply a free espresso and doughnut to affected customers.

The settlement, negotiated with the authorized groups concerned within the lawsuits, nonetheless requires courtroom approval.

The espresso and doughnut chain would additionally completely delete any geolocation info it could have collected between April 1, 2019 and Sept. 30, 2020, and direct third-party service suppliers to do the identical.

“We think that it’s a favourable settlement because it offers compensation that has a real value,” stated Joey Zukran, a lawyer with the Montreal-based regulation agency LPC Avocat Inc., which filed the category motion in Quebec.

“Privacy cases across Canada are never guaranteed a win,” he stated. “Here we have some form of guarantee, some form of recovery … as opposed to uncertainty that could last.”

It’s unclear what number of prospects used the app through the 18-month interval ending Sept. 30, 2020, and could be eligible to obtain a free scorching beverage and baked good.

Restaurant Brands International Inc., the father or mother firm of Tim Hortons, stated in an investor presentation in May that it had 4 million lively customers through the three months ended March 31, 2022.

“I think people who receive this will think it’s paltry, but class action settlements are often paltry for the end consumer,” stated David Fraser, a privateness lawyer with McInnes Cooper in Halifax.

While the person compensation might not seem to be a lot, he stated given the variety of folks doubtlessly concerned “it may be reasonable in aggregate.”

Still, others might really feel it isn’t excessive sufficient to “act as a disincentive to further mischief,” Fraser stated.

“Any time you settle, there’s going to be a compromise,” he stated, including that the case “reflects how weird privacy harms are.”

“If you used that app and Tim Hortons collected your location information without your adequate, informed consent but nothing has happened with that information, you actually haven’t suffered what would be considered a tangible harm,” Fraser stated.

“You’re trying to compensate for the feeling of ickiness, the creepiness somebody might feel knowing that their information was collected without their knowledge or consent.”

The proposed settlement comes after an investigation by federal and provincial privateness watchdogs discovered the cellular ordering app violated the regulation by accumulating huge quantities of location info from prospects.

In a report launched final month, privateness commissioners stated individuals who downloaded the Tim Hortons app had their actions tracked and recorded each couple of minutes — even when the app was not open on their telephones.

The investigation was launched after National Post reporter James McLeod obtained information displaying the app on his cellphone had tracked his location greater than 2,700 instances in lower than 5 months.

In an announcement, Tim Hortons stated it is happy to have reached a proposed settlement within the 4 class motion lawsuits filed in Quebec, British Columbia and Ontario.

“All parties agree this is a fair settlement and we look forward to the Superior Court of Quebec’s decision on the proposal,” the corporate stated in an announcement.

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

The firm stated the allegations raised within the class actions weren’t confirmed in courtroom and the settlement shouldn’t be an admission of any wrongdoing.

Tim Hortons stated it might be emailing prospects Friday to tell them of the proposed settlement.

Tim Hortons stated the retail worth of a free scorching beverage is $6.19 whereas the worth of a baked good is $2.39, plus taxes, in accordance with courtroom paperwork.

Customers could be supplied with a credit score for the objects with a coupon or via the Tim Hortons app, paperwork stated.

Details on the distribution of the free scorching beverage and baked good could be supplied if the courtroom approves the settlement, Tim Hortons stated.

A listening to has been scheduled in a Quebec courtroom on Sept. 6 to contemplate the proposed settlement.

This report by The Canadian Press was first printed July 28, 2022.