fine of 2.6 million by the Privacy Guarantor

At the end of a procedure started almost two years ago, the Guarantor for the protection of personal data imposed a fine of 2.6 million euros on Foodinho, a food delivery company controlled by GlovoApp23. The authority found numerous violations of the GDPR (General Data Protection Regulation) and the Workers’ Statute, in particular the discrimination of riders through booking and order assignment algorithms. Foodinho: millionaire fine for serious offenses The investigation lasted longer than usual both for its complexity and for the involvement of the Spanish authority (AEPD), considering the cross-border processing of data and therefore the need for a continuous exchange of information. During the procedure and on the basis of the documentation collected, the Guarantor has ascertained numerous violations in relation to the processing of data of 18,684 riders. The most serious offenses concern the algorithms used to manage workers. Foodinho did not provide the riders with adequate information on the functioning of the evaluation system, did not guarantee the correctness of the results obtained by the algorithms and did not allow to contest the decisions adopted on the basis of the algorithms, including the dismissal of the riders. imposed on Foodinho to verify the accuracy of the data used by the evaluation system, “in order to minimize the risk of errors and distortions that could, for example, lead to the limitation of the deliveries assigned to each rider or to the exclusion itself from the platform “. These risks also derive from the mathematical formula used to assign a score to the riders. Those who refuse or do not immediately accept an order are penalized, while those who accept within the established times and deliver the highest number of orders are rewarded. The authority also asked Foodinho to make changes to the algorithms to avoid “improper or discriminatory use of reputational mechanisms based on customer and business partner feedback “. The fine of 2.6 million euros was calculated based on the 2019 budget, taking into account the lack of collaboration offered by the company during the investigation and the high number of riders involved.

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