A German court laid down its verdict that the transfer of data by e-commerce websites to Facebook through the "Like" button without the knowledge of consumers has infringed German and EU privacy laws.
The Dü sseldorf court ruled that domestic websites may not transfer visitor data to Facebook Inc. via its "like" button without the visitors' knowledge or consent. It was also decided that companies will have to inform consumers on their website in future that clicking the button may cause their IP addresses to be transferred to Facebook.
The Consumer Advice Organization of the state of North Rhine-Westphalia sued two e-commerce websites, it said that it transferred data to Facebook without consent by using "Like" buttons on their websites.
It claimed that when a social plugin is installed on a website, Facebook automatically receives data on the surf conduct of the users when the websites are accessed. This is done through the "Like" button on e-com, a tool Facebook uses to install small bits of software on people's computers that can be used to compile a profile of their interests -irrespective of whether they have a Facebook account or not.
Moreover, the customer is neither informed about the transfer of the data nor can he oppose it. Thus, the Association therefore demanded that the data is converted in conformity with data-protection law when using the button.
As per Sebastian Meyer, counsel of the consumer group, "The ruling has fundamental significance for the assessment of the legality of the 'like' function with respect to data protection."
He also stated that companies should put pressure on the social network to adapt the 'like' function to the prevailing law, according to Reuters.
Facebook was not a party to the "like" button lawsuit, but nevertheless affected because the ruling restricts usage of the ubiquitous plugin.
A Facebook spokesman said "this case is specific to a particular website and the way they have sought consent from their users in the past. We understand the website has since been updated."
Facebook is currently facing an investigation in Germany, where the Federal Cartel Office, the country's competition watchdog, was looking into possible abuse of user data and violation of data protection laws.
Andreas Mundt, the president of Cartel Office, said that for advertising-financed internet services, user data are very important. Thus, it is essential to examine under the aspect of abuse of market power whether the consumers are sufficiently informed about the type and extent of data collected.
He stated that Facebook was dominant in the social media market and relied on advertising revenues generated on the basis of a "large amount of personal user data." As a consequence, Facebook should ask the consent of the users to agree to the collection of data as a condition in using the network.
Germany has a strict data protection norms and it seems like Facebook has put these norms on the side-lines. This negligence by the social media has raised many concerns among the legal authorities of the country.
