FDPIC: Final report on Post­fi­nan­ce; requi­re­ments for consent

Initi­al situation

The FDPIC has sub­mit­ted the final report in the case of Post­fi­nan­ce, dated June 1, 2015. The report con­cerns ser­vices pro­vi­ded by Swiss Post under the name “Post­Fi­nan­ce”. The­se include two Post­Fi­nan­ce func­tions, “E‑Cockpit” and “Bici­c­letta”. E‑Cockpit assigns Post­Fi­nan­ce cus­to­mers’ tran­sac­tions to cate­go­ries to give cus­to­mers a bet­ter over­view of their spen­ding beha­vi­or. The cor­re­spon­ding infor­ma­ti­on is only made available to the cus­to­mers them­sel­ves. Bici­c­letta goes fur­ther and, based on the E‑Cockpit data, cal­cu­la­tes Affi­ni­ties, i.e., the pro­ba­bi­li­ty that a cus­to­mer will purcha­se cer­tain ser­vices. On this basis, tar­ge­ted third-par­ty adver­ti­sing is dis­play­ed to the cus­to­mer in the e‑finance por­tal. Howe­ver, no per­so­nal data is made available to the third par­ties con­cer­ned. Accor­ding to the FDPIC, the­se pro­ce­s­ses requi­re justi­fi­ca­ti­on becau­se both the cate­go­rizati­on in the con­text of E‑Cockpit and the eva­lua­ti­on in the con­text of Bici­c­letta are disproportionate10 and becau­se Bici­c­letta vio­la­tes the pur­po­se limi­ta­ti­on principle11 and the prin­ci­ple of data accu­ra­cy. The FDPIC then jud­ges the per­so­nal data pro­ce­s­sed in Bici­c­letta to be per­so­na­li­ty pro­files. Sub­se­quent­ly, the FDPIC exami­nes whe­ther effec­ti­ve con­sent was given.

Some of the FDPIC’s state­ments are que­stionable, some even untenable. S. on this Vasel­la, On the Vol­un­t­a­ri­ness and Expli­ci­t­ness of Con­sent in Data Pro­tec­tion Law, Jus­let­ter v. 16. Novem­ber 2015..

Con­cept of per­so­nal data requi­ring spe­cial protection

Whe­ther the qua­li­fi­ed pro­tec­tion of per­so­nal data requi­ring spe­cial pro­tec­tion comes into play must the­r­e­fo­re depend on the con­text in which the data are loca­ted or used. The FDPIC has deter­mi­ned that the cate­go­ri­zed e‑cockpit data is available exclu­si­ve­ly to indi­vi­du­al pri­va­te cus­to­mers in their e‑finance area. Post­Fi­nan­ce does not eva­lua­te the data for its own or third par­ty pur­po­ses. This shows that the data coll­ec­ted in e‑finance is not aggre­ga­ted by Post­Fi­nan­ce into per­so­nal data requi­ring spe­cial pro­tec­tion. Only the cus­to­mer, and thus the data sub­ject hims­elf, could car­ry out such an eva­lua­ti­on and aggre­ga­ti­on. For the­se rea­sons, it can be sta­ted that Post­Fi­nan­ce does not pro­cess any par­ti­cu­lar­ly sen­si­ti­ve per­so­nal data within the mea­ning of Art. 3 lit. c FADP with E‑Cockpit in its cur­rent form.

Con­cept of per­so­na­li­ty profile

Thus, it can be assu­med that the tota­li­ty of the amount, con­tent, and reten­ti­on over time of this data can con­sti­tu­te a sub­stan­ti­al par­ti­al pic­tu­re of a data sub­ject. Howe­ver, even if an essen­ti­al par­ti­al image of the per­so­na­li­ty is assu­med, the con­cre­te con­text in which the data is used must ulti­m­ate­ly be one of the deci­ding fac­tors as to whe­ther or not the qua­li­fi­ed legal pro­tec­tion should come into play – as men­tio­ned at the begin­ning. This is the case if the crea­ti­on of a per­so­na­li­ty pro­fi­le crea­tes a risk for a data sub­ject that he or she will no lon­ger be able to pre­sent and deve­lop hims­elf or hers­elf in socie­ty in the way that he or she con­siders appro­pria­te. For the assess­ment of this aspect regar­ding E‑Cockpit, it is cru­cial that this data is exclu­si­ve­ly available to the indi­vi­du­al pri­va­te cus­to­mers who want to use E‑Cockpit in their e‑finance area. Post­Fi­nan­ce does not use the data for a per­so­nal eva­lua­ti­on nor does it cal­cu­la­te affi­ni­ties and the like. Nor is any data pas­sed on to third par­ties. In this respect, the­re is no dan­ger for the per­sons con­cer­ned that they will no lon­ger be able to pre­sent them­sel­ves or deve­lop them­sel­ves in socie­ty in the way they con­sider appro­pria­te. In sum­ma­ry, due to the tota­li­ty of the amount, con­tent and time of sto­rage of the data in E‑Cockpit, it can be assu­med that a signi­fi­cant par­ti­al image of a data sub­ject is crea­ted. Howe­ver, as long as the data is used exclu­si­ve­ly for the cus­to­mers in con­nec­tion with the func­tions of E‑Cockpit and the data is not fur­ther pro­ce­s­sed by Post­Fi­nan­ce or third par­ties, in E‑Cockpit no per­so­na­li­ty pro­files within the mea­ning of Art. 3 lit. d DSG.

[…]

The insights gai­ned through ana­ly­ses using algo­rith­ms are used for mar­ke­ting mea­su­res in con­nec­tion with Bici­c­letta. This means that a search is made in the data of a cus­to­mer con­cer­ned […] in order to assign him to an indu­stry and to dis­play tar­ge­ted adver­ti­sing offers in his e‑finance por­tal. The­se ana­ly­ses and eva­lua­tions take place in the ver­bo­gen, they escape the awa­re­ness of the per­sons con­cer­ned, so that they can­not con­trol their cor­rect­ness and use to the full ext­ent. Such syste­ma­tic data pro­ce­s­sing can depri­ve the data sub­ject of the free­dom to pre­sent hims­elf or hers­elf as he or she wis­hes, espe­ci­al­ly if he or she knows that such pro­files exist about him or her or are being crea­ted. If his tran­sac­tion data is syste­ma­ti­cal­ly ana­ly­zed for adver­ti­sing offers for third par­ties and the data sub­ject is sche­ma­ti­zed in an indu­stry-spe­ci­fic man­ner, this can bring about chan­ges in the thin­king, actions and beha­vi­or of the data sub­ject. And this can signi­fi­cant­ly impair the deve­lo­p­ment of his per­so­na­li­ty. For the­se rea­sons, in con­nec­tion with the use and ana­ly­sis of the tran­sac­tion data at Bici­c­letta, it must be assu­med that the­re is a per­so­na­li­ty pro­fi­le within the mea­ning of Art. 3 lit. d FADP.

Pro­por­tio­na­li­ty of data processing

[…]Thus, E‑Cockpit is sui­ta­ble to com­ple­ment the requi­red pur­po­se of e‑finance. It is que­stionable, howe­ver, whe­ther E‑Cockpit also requi­red is for a func­tio­ning e‑banking user inter­face. […] E‑Cockpit is now a fixed com­po­nent for all pri­va­te cus­to­mers of e‑finance, which can­not be swit­ched off. As men­tio­ned, E‑Cockpit can also dis­play tran­sac­tions in e‑finance as a pie chart instead of the pre­vious bar chart and offers an archi­ving and search tool. In addi­ti­on, it allo­ws pri­va­te cus­to­mers to defi­ne savings tar­gets or bud­gets and set up alerts. The addi­tio­nal dis­play for­mat and the sup­ple­men­ta­ry tools may be an important step towards moder­ni­zing e‑finance and desi­ra­ble for many cus­to­mers. The Howe­ver, the histo­ri­cal deve­lo­p­ment of e‑finance shows that E‑Cockpit is not abso­lut­e­ly neces­sa­ry for a func­tio­ning e‑banking user inter­face. The fixed inte­gra­ti­on of E‑Cockpit in e‑finance wit­hout a wai­ver opti­on is the­r­e­fo­re not neces­sa­ry within the mea­ning of Art. 4 (2) DPA.

Data cor­rect­ness

[…] Art. 5 para. 1 DSG obli­ges Post­Fi­nan­ce to ensu­re the accu­ra­cy of the per­so­nal data. In the case of Bici­c­letta, this is not pos­si­ble in prin­ci­ple, as the cal­cu­la­ted data are sub­ject to a cer­tain inac­cu­ra­cy inher­ent is. The­se are pro­ba­bi­li­ties as to whe­ther or not an affec­ted Post­Fi­nan­ce cus­to­mer belongs to a cer­tain tar­get group or indu­stry. Alt­hough Post­Fi­nan­ce has an inte­rest in ensu­ring that the affec­ted cus­to­mers effec­tively belong to the cal­cu­la­ted tar­get group, a cla­ri­fi­ca­ti­on within the mea­ning of Art. 5 para. 1 FADP is not pos­si­ble. The­re is the­r­e­fo­re a vio­la­ti­on of Art. 5 para. 1 FADP.

Assess­ment of consent

Vol­un­t­a­ri­ness

A with­dra­wal results in the cus­to­mer no lon­ger having elec­tro­nic access to their Post­Fi­nan­ce accounts. In this case, e‑finance cus­to­mers will have to com­ple­te their payment orders by mail using a payment form or go to the post office coun­ter. Against this back­drop, it should be noted that Post­Fi­nan­ce has per­ma­nent­ly expan­ded the elec­tro­nic payment system in recent years, whe­re­as the infras­truc­tu­re for cash payment tran­sac­tions has ten­ded to be dis­mant­led, as it is com­plex and expen­si­ve (see also dis­patch on the Postal Act, para. 5.2.2, pp. 5204 – 5205). This deve­lo­p­ment is likely to con­ti­n­ue in the coming years. Fur­ther­mo­re, it should be noted that pri­va­te cus­to­mers of purely elec­tro­nic accounts (such as the e‑savings account), which are only available via e‑finance, have no alter­na­ti­ve to e‑finance to be able to mana­ge the­se accounts. It fol­lows that if the new e‑finance TNB is rejec­ted, the­re are no rea­sonable alter­na­ti­ve cour­ses of action available to cus­to­mers. By accep­ting the new TNB on e‑finance, cus­to­mers will also be forced to accept data pro­ce­s­sing in con­nec­tion with e‑cockpit. Sin­ce the­re is no wai­ver opti­on for E‑Cockpit, the­re is no vol­un­t­a­ri­ness within the mea­ning of Art. 4 (5) sen­tence 1 DPA. Con­se­quent­ly, the­re is no valid con­sent for E‑Cockpit within the mea­ning of Art. 4 (5) sen­tence 1 FADP..

Expres­si­ve­ness

All other cus­to­mers who had alre­a­dy accept­ed the TNB pri­or to 12 Octo­ber 2014 did not have this opti­on direct­ly on the inte­rim e‑finance page. The decla­ra­ti­on was inde­ed also vol­un­t­a­ry within the mea­ning of Art. 4 As. 5 Sen­tence 1 DPA, as the data sub­jects can sub­se­quent­ly opt out of Bici­c­letta at any time (“opt-out”; cf. para. 20 TNB e‑finance and abo­ve para. 5.5.3 of this final report with comm­ents). As infor­med in the last sen­tence of para. 20 of the TNB on e‑finance, Post­Fi­nan­ce assu­mes the con­sent of the pri­va­te cus­to­mer until the decla­ra­ti­on of wai­ver by a per­son con­cer­ned. Howe­ver, con­sent to data pro­ce­s­sing in con­nec­tion with Bici­c­letta must not be impli­cit. The glo­bal accep­tance of the new TNB on e‑finance is the­r­e­fo­re not express­ly accom­pa­nied by the con­sent of the data sub­jects to data pro­ce­s­sing in con­nec­tion with Bici­c­letta. For cus­to­mers who accept­ed the ABB in the form descri­bed befo­re Octo­ber 12, 2014, the­re is the­r­e­fo­re no express con­sent within the mea­ning of Art. 4 (5) sen­tence 2 DPA.

Final Report June 1, 2015

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