Tim Hortons says it has reached a proposed settlement in multiple class-action lawsuits alleging the restaurant’s mobile app violated customer privacy which would see the restaurant offer a free coffee and doughnut to affected users.
The company says the settlement, negotiated with the legal teams involved in the lawsuits, still requires court approval.
The coffee and doughnut chain says the deal would see eligible app users receive a free hot beverage and baked good.
Tim Hortons says in court documents it would also permanently delete any geolocation information it may have collected between April 1, 2019 and Sept. 30, 2020, and direct 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 vast amounts of location information from customers.
In a report released last month, privacy commissioners said people who downloaded the Tim Hortons app had their movements tracked and recorded every few minutes — even when the app was not open on their phones.