German court tells Apple to change its customer data handling rules

A German court has told Apple Inc, already hit with a US privacy lawsuit over its information-sharing practices, to change its rules for handling customer data.

A Berlin court struck down eight of 15 provisions in Apple's general data-use terms due to far too much deviation from German laws, according to a consumer group's statement on its website today. According to the court, Apple could not ask for ''global consent'' for using customer data or use of information on the locations of customers.

The group, Verbraucherzentrale Bundesverband's head, Gerd Billen, said the ruling showed the high importance of data protection for consumers in a digital world.

Technology companies have been faced with growing pressure from regulators over data protection and consumer rights. Last year, Google Inc agreed to pay $22.5 million to settle US Federal Trade Commission allegations it violated people's privacy rights by breaching Apple's Safari Internet browser.

The ruling, which applied only to Germany, could be appealed.

In the US lawsuit, Apple was accused of improperly collecting data on the locations of customers through iPhones, even after the devices had been switched off.

Apple had already signed a binding declaration that it would not use seven of the 15 clauses VZBV had objected to before the filing of the German suit according to the consumer group.

The ruling today has led to the invalidation of the remaining eight provisions, according to VZBV. Recognised consumer groups are allowed under German law to sue companies over illegal terms and conditions.

Apple's terms for sharing personal information with the company were too broadly formulated, according to the court's 30 April ruling, the VZBV said yesterday.

In 2011 the consumer group demanded that Apple Sales International stop using unfair contractual clauses in its privacy policy as posted on its German website, according to Helke Heidemann-Peuser, a lawyer and head of the VZBV's legal enforcement section.

Following the warning, Apple agreed to change five of those clauses, which was not enough, and prompted  VZBV to sue the company in February 2012, she said.

After Apple was sued, the company committed to change two more clauses, following which the lawsuit continued over the eight remaining disputed clauses, according to Heidemann-Peuser. She added, the court found Apple in breach of the law with all those clauses.

In Apple's German privacy policy, which was similar to the one used in the US, Apple stated for instance, that when people contacted Apple and its affiliates, they might share information about the person with each other.

Apple also stated that the information might be combined with other information to provide and improve products, services, content and advertising.

The clause violated the law as customers were not aware which data was used and to what extent, the court ruled, VZBV said.