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Easylife Ltd. – €1,579,500 Fine (United Kingdom, 2022)

€1,579,500Information Commissioner's Office4 October 2022United Kingdom
final
Fine

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Easylife Ltd. faced a fine of EUR 1,579,500 for improperly using customers' health data for marketing. The company inferred health conditions from purchases and targeted customers without their consent. This ruling highlights the importance of transparency and consent in data processing.

What happened

Easylife Ltd. used customers' transaction data to infer health conditions and market products without their consent.

Who was affected

145,400 customers whose personal data was used for profiling were affected.

What the authority found

The Information Commissioner's Office determined that Easylife breached GDPR by failing to inform customers about the use of their data for profiling and not obtaining consent for processing special category data.

Why this matters

This case illustrates the serious implications of failing to secure consent for sensitive data use. Companies must be clear about how they use personal data and ensure they have proper consent mechanisms.

Recorded legal citations
Automatically processed
Art. 6 GDPR
Art. 9 GDPR
Art. 13 GDPR
Art. 5(1)(a) GDPR
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Art. 5(1)(a) GDPR
Art. 6 GDPR
Art. 9 GDPR
Art. 13 GDPR

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Full Legal Summary
Detailed

The controller is a catalogue retailer that sells health related services and products. The DPA started to investigate the controller after it came across it during another investigation. In its investigation into the controller, the DPA found that between August 2019 and 19 August 2020, when a customer purchased a "trigger product" from the controller, it would make assumptions about customers' medical conditions and then market health-related products to them without their consent. the controller linked the trigger products to several health conditions which Easylife inferred that the customer was likely to have. After this, the controller would trigger marketing calls through a third party telemarketing provider based on the transaction data. Overall, the incident affected 145,400 data subjects. Their personal data would include their names, telephone numbers, and special categories of data. For the processing, the controller relied on its own legitimate interests for the processing, such as 'to store the information' and 'to maintain it as evidence'. Data subjects were not involved that their personal data would be used for profiling. The DPA became concerned that using transaction data to make inferences about health conditions could constitute profiling, and the inferences made about health conditions could indicate processing of special category data. In the representations, the controller argued that it had acquired the requisite consent to process special category data because it had notified customers that it would be using their personal data to notify them of products "that might be of interest'. The DPA held that the transactional purchase data of Easylife's customers was personal data. The DPA held that when the controller used relevant transactional data to select customers for telemarketing, this constituted profiling. When controller used the transactional data to decide which products to market to which customers, based on its inferences of customer's health conditions, this constituted the processing of special category data. This was irrespective of the controllers level of statistical confidence over the profiling. The DPA held that Easylife breached Article 13 GDPR because the data subjects were not informed that their information would be used for profiling. The controller also violated Article 9 GDPR, because it did not collect customer's explicit consent to process special category data as required by Article 9 GDPR. Instead, the controller relied on legitimate interest. As a result, it also breached Article 6 GDPR besides Article 9 GDPR for not having lawful basis to process special category data. Since the individuals were not informed about profiling of special category data, the DPA held that controller also conducted "invisible" processing of special category data. Therefore, the controller didn't process the data fairly, lawfully or transparently pursuant to Article 5(1)(a) GDPR. The DPA also dismissed the argument of the controller that it had acquired consent because it had notified them that it would use personal data to notify them of products that might be of interest to them. The DPA held that no customer would have understood this that the controller was going to use their special category data in a direct marketing telephone campaign. The DPA imposed a fine of £1,350,000 on the controller.

Details

Fine Date

4 October 2022

Authority

Information Commissioner's Office

Fine Amount

€1,579,500

1,350,000 GBP

GDPRhub ID

gdprhub-5323

About this data

Data: GDPRhub (noyb.eu)
Licensed under CC BY-NC-SA 4.0
Automatically normalized and classified

Cite as: Cookie Fines. Easylife Ltd. - United Kingdom (2022). Retrieved from cookiefines.eu

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