Tim Hortons offers coffee and doughnut as proposed settlement in class action lawsuit

Tim Hortons 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 settlement, negotiated with the legal teams involved in the lawsuits, still requires court approval.
The coffee and doughnut chain 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.
- Canadian class-action settlements you could submit a claim for
- Canadians can make a claim following a $29.7M settlement in a class-action lawsuit
"We think that it's a favourable settlement because it offers compensation that has a real value," said Joey Zukran, a lawyer with the Montreal-based law firm LPC Avocat Inc., which filed the class action in Quebec.
"Privacy cases across Canada are never guaranteed a win," he said. "Here we have some form of guarantee, some form of recovery ... as opposed to uncertainty that could last."
It's unclear how many customers used the app during the 18-month period ending Sept. 30, 2020, and would be eligible to receive a free hot beverage and baked good.
Restaurant Brands International Inc., the parent company of Tim Hortons, said in an investor presentation in May that it had four million active users during the three months ended March 31, 2022.
"I think people who receive this will think it's paltry, but class action settlements are often paltry for the end consumer," said David Fraser, a privacy lawyer with McInnes Cooper in Halifax.
While the individual compensation may not seem like much, he said given the number of people potentially involved "it may be reasonable in aggregate."
Still, others may feel it's not high enough to "act as a disincentive to further mischief," Fraser said.
"Any time you settle, there's going to be a compromise," he said, adding that the case "reflects how weird privacy harms are."
"If you used that app and Tim Hortons collected your location information without your adequate, informed consent but nothing has happened with that information, you actually haven't suffered what would be considered a tangible harm," Fraser said.
"You're trying to compensate for the feeling of ickiness, the creepiness somebody might feel knowing that their information was collected without their knowledge or consent."
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.
The investigation was launched after National Post reporter James McLeod obtained data showing the app on his phone had tracked his location more than 2,700 times in less than five months.
In a statement, Tim Hortons said it's pleased to have reached a proposed settlement in the four class action lawsuits filed in Quebec, British Columbia and Ontario.
"All parties agree this is a fair settlement and we look forward to the Superior Court of Quebec's decision on the proposal," the company said in a statement.
"We are confident that pending the Quebec court's approval of the settlement, the courts in British Columbia and Ontario will recognize the settlement."
The company said the allegations raised in the class actions were not proven in court and the settlement is not an admission of any wrongdoing.
Tim Hortons said it would be emailing customers Friday to inform them of the proposed settlement.
Tim Hortons said the retail value of a free hot beverage is $6.19 while the value of a baked good is $2.39, plus taxes, according to court documents.
Customers would be provided with a credit for the items with a coupon or through the Tim Hortons app, documents said.
Details on the distribution of the free hot beverage and baked good would be provided if the court approves the settlement, Tim Hortons said.
A hearing has been scheduled in a Quebec court on Sept. 6 to consider the proposed settlement.
This report by The Canadian Press was first published July 28, 2022.
YOUR FINANCES

Statistics Canada says household debt ratio down in Q2 as income grew
Statistics Canada says the amount Canadians owe relative to how much they earn fell in the second quarter as disposable income comfortably outpaced the growth in debt and demand for mortgages fell.

How electric vehicle insurance compares to gasoline-powered vehicles
As Canada ushers in the era of electric vehicles, here's what costs and factors you should consider before making the switch.

OPINION 6 ways to prepare your finances for a potential recession
Despite Canada's economic resilience in the face of rising interest rates, it's still important to be prepared in case a recession hits. In a column for CTVNews.ca, personal finance contributor Christopher Liew shares some practical tips and actionable advice to better weather any economic storm.
Back-to-school: Parents offer tips on how they save during annual shopping spree
A new survey found 46 per cent of Canadians are more worried about their finances during this back-to-school season than in previous years.
opinion Canada can dodge a recession, but it could still happen; here's why
In his column for CTVNews.ca, personal finance contributor Christopher Liew outlines how Canada might avoid a recession, as well as some risks that could contribute to one.
Budgeting important part of RESP spending plan as students head to school
Parents across the country are getting ready to tap into registered education savings plans to help pay for their children's post-secondary schooling this fall.
Turning to dollar stores for groceries? Here's what a dietician recommends
As Canadians continue to feel the financial toll of inflation while grocery shopping, one registered dietitian offers practical tips for cutting costs at dollar stores, without compromising nutrition.
OPINION Financial tips for newcomers to Canada, from an expert
For those who have recently immigrated to Canada, it's important to learn the basics of how the country's financial system works. Personal finance contributor Christopher Liew shares some financial tips around how to open a bank account, build your credit and file your taxes as a newcomer.
CTVNews.ca Top Stories

Threat of U.S. government shutdown ends as Congress passes a temporary funding plan and sends it to Biden
The threat of a U.S. federal government shutdown ended late Saturday, hours before a midnight deadline, as Congress approved a temporary funding bill to keep agencies open and sent the measure to President Joe Biden to sign.
Blue Jays secure playoff berth
The Toronto Blue Jays are returning to the post-season. Toronto secured an American League playoff spot when the visiting Texas Rangers beat the Seattle Mariners 6-1 tonight.
Pierre Poilievre called out for Truth and Reconciliation Day photos with Inuk elder
Conservative Leader Pierre Poilievre found himself the subject of online criticism after posting photos with an Inuk elder alongside a caption about meeting with Algonquin elders on the National Day for Truth and Reconciliation.
Canada marks National Day for Truth and Reconciliation with events across country
Seas of orange flooded events across the country on Saturday as Canadians gathered to acknowledge systemic oppression of Indigenous people and observe the third annual National Day for Truth and Reconciliation.
Jury acquits delivery driver of main charge in shooting of YouTube prankster
A jury on Thursday found a delivery driver not guilty in the shooting of a YouTube prankster who followed him around a mall food court earlier this year.
W5 Ferraris worth nearly $1M seized from Edmonton men linked to Pivot Airlines drug-smuggling scandal
Two Edmonton men at the centre of an international cocaine-trafficking scandal that led to the detainment of a Canadian airline crew in the Dominican Republic last year are back in the spotlight. They're facing numerous charges after police seized a pair of stolen Ferraris worth roughly $1 million.
Can you watch 'Toy Story Funday Football' in Canada?
The NFL is airing a special animated broadcast featuring 'Toy Story' characters when the Atlanta Falcons play the Jacksonville Jaguars on Sunday.
Scientist rediscover bat that hasn't been seen in 100 years
After first being captured over a century ago, scientists have re-discovered a species of bat that hasn't been seen since 1916.
'Reconciliation is a lifelong experience': Gov. Gen. Mary Simon reflects on Truth and Reconciliation
On the third annual National Day for Truth and Reconciliation, Gov. Gen. Mary Simon says that while she acknowledges the time it takes to fulfill calls to action, she also understands the frustrations that progress is too slow, and she feels 'we should speed things up.'