CE - N° 433311
From GDPRhub
| CE - N° 433311 | |
|---|---|
 | |
| Court: | CE (France) |
| Jurisdiction: | France |
| Relevant Law: | Article 5(1)(e) GDPR Article 83 GDPR Loi Informatique & Libertés Code de justice administrative |
| Decided: | 04.11.2020 |
| Published: | |
| Parties: | SERGIC SAS |
| National Case Number/Name: | N° 433311 |
| European Case Law Identifier: | ECLI:FR:CECHR:2020:433311.20201104 |
| Appeal from: | CNIL SAN-2019-005 |
| Appeal to: | Not appealed |
| Original Language(s): | French |
| Original Source: | Legifrance (in French) |
| Initial Contributor: | Roka |
The French highest administrative court confirmed a €400,000 fine pronounced by the DPA against a real estate company for faulty website security (article 32 GDPR) and violation of the storage limitation principle (5(1)(e) GDPR).
English Summary
Facts
After a complaint in 2018, the CNIL conducted both online and on-site investigations of the company resulting in a €400,000 fine for lack of appropriate security which allowed the public display of personal information on the web and for violation of Article 5 GDPR due to a conservation of personal data after the goal of the processing had been achieved.
The company appealed the sanction to the Conseil d'Etat, making several arguments against it.
First of all, the company argued that the CNIL investigating delegation was not allowed to download files made available online due to a faulty security.
Secondly, the company pleaded that the CNIL should have given a formal notice to comply with the Law prior to imposing a penalty, giving the company a chance to rectfiy its wrongdoings.
Thirdly, the company argued that the decision did not sufficiently motivated in what way the company violated the storage limitation principle.
Lastly, the company said that the €400,000 fine was disproportionate.
Dispute
Is the french DPA allowed to download files made available on the web due to a faulty security in order to conduct online investigations ?
Can the french DPA impose a fine without giving first a formal notice to rectify the deficiencies identified to the company ?
Did the CNIL sufficiently motivate its decision regarding storage limitation ?
Is the €400,000 fine disproportionate ?
Holding
The Conseil d'Etat confirmed the CNIL's sanction on all counts.
It stated that section 19 of the Law Informatique & Libertés allowed the DPA to conduct online investigations and to dowload any document made publicly available, even by mistake or due to a faulty security.
The Conseil d'Etat also stated that the CNIL could impose a sanction without giving prior formal notice to the company.
Thirdly, the Conseil d'Etat decided that the CNIL was right in concluding that the company violated the storage limitation principle by not having an intermediary storage system and a data deletion system in place.
Finally, the Conseil d'Etat noted that the security weaknesses of the website could have been prevented by implementing simple measures, that the data exposed was information related to private life and that the data was kept for a longer time than necessary. It thus concluded that the fine was proportionate to the gravity of the wrongdoings of the company, adding that it represented less than 1% of the company's turnover and 4% of the maximum fine the CNIL could have imposed.
Comment
This Decision is an appeal of the sanction CNIL - SAN-2019-005.
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English Machine Translation of the Decision
The decision below is a machine translation of the French original. Please refer to the French original for more details.
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class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-SIGNATURE" value="SIGNATURE" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','SIGNATURE','true')"/> <label class="form-check-label" for="searchField-input-SIGNATURE">In the signatures</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-NOTA" value="NOTA" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','NOTA','true')"/> <label class="form-check-label" for="searchField-input-NOTA">In the notas</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-NUM_AFFAIRE" value="NUM_AFFAIRE" type="radio" name="searchField" 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id="searchField-input-TEXTE_REF" value="TEXTE_REF" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','TEXTE_REF','true')"/> <label class="form-check-label" for="searchField-input-TEXTE_REF">In the reference texts</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-TITRE_LOI_DEF" value="TITRE_LOI_DEF" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','TITRE_LOI_DEF','true')"/> <label class="form-check-label" for="searchField-input-TITRE_LOI_DEF">In the titles of referred laws</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-RAISON_SOCIALE" value="RAISON_SOCIALE" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','RAISON_SOCIALE','true')"/> <label class="form-check-label" for="searchField-input-RAISON_SOCIALE">In the social names</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-MOTS_CLES" value="MOTS_CLES" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','MOTS_CLES','true')"/> <label class="form-check-label" for="searchField-input-MOTS_CLES">In the keywords</label></div><div class="form-radio"><input class="form-check-input form-select-search radio-target" data-autoclose="true" id="searchField-input-IDCC" value="IDCC" type="radio" name="searchField" onclick="validateTroncatureSearchAdvancesSltChmp('select-target-group','','IDCC','true')"/> <label class="form-check-label" for="searchField-input-IDCC">In IDCCs</label></div></div></fieldset></div></div><div 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print</span></button></li><li class="options-item type-copy"> <button type="button" class="copy-cta" title="Copy text"><span class="icon" aria-hidden="true"></span><span class="text">Copy text</span></button> </li><!--<li class="options-item type-download">--><!--<a href="#" class="options-cta" title="Télécharger au format PDF">--><!--<span class="icon" aria-hidden="true"></span>--><!--<span class="text">Télécharger <span class="hidden-element">au format PDF</span></span>--><!--</a>--><!--</li>--></ul></div></div></div><div class="main-col"><h1 class="main-title"> Council of State, 10th - 9th chambers combined, 04/11/2020, 433311</h1><div class="frame-block print-sommaire"><div><h2 class="title horsAbstract print-black"> Council of State - 10th - 9th chambers combined</h2><ul><li> No. 433311</li><li> ECLI: FR: CECHR: 2020: 433311.20201104</li><li> Mentioned in the tables of the Lebon collection</li></ul></div><div><div class="h2 title horsAbstract print-black"> Reading Wednesday 04 November 2020</div></div></div><div class="frame-block print-sommaire"><div><dt> Reporter</dt><dd> Ms. Isabelle Lemesle</dd></div><div><dt> Public reporter</dt><dd> Mr. Alexandre Lallet</dd></div><div><dt> Lawyer (s)</dt><dd> SCP BARADUC, DUHAMEL, RAMEIX</dd></div></div><div id="stickyScrollDefault"></div><div id="overlayContent"><div id="spin"><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div class="content-page"><h2 class="title"> Full Text</h2><div class="intro"> <strong>FRENCH REPUBLIC</strong><br /> <strong>IN THE NAME OF THE FRENCH PEOPLE</strong><br /><br /></div><div> Considering the following procedure:<br/><br/> By a summary request, an additional memorandum and two memoranda in reply, registered on August 5, 2019, November 5, 2019, August 5, 2020 and September 3, 2020 at the litigation secretariat of the Council of State, the company for the study and realization of construction property management (SERGIC) asks the Council of State:<br/><br/> 1 °) cancel deliberation n ° SAN-2019-005 of May 28, 2019 by which the restricted formation of the National Commission for Informatics and Freedoms (CNIL) pronounced against it a financial penalty of an amount of 400,000 euros and ordered the publication of its deliberation for a period of two years, before anonymization;<br/><br/> 2) to order the CNIL to publish the forthcoming decision of the Council of State in the same forms as the contested deliberation;<br/><br/> 3) to charge the CNIL the sum of 5,000 euros under Article L. 761-1 of the Code of Administrative Justice.<br/><br/><br/> Having regard to the other documents in the file;<br/><br/> Seen:<br/> - Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016;<br/> - Law n ° 78-17 of January 6, 1978;<br/> - the code of administrative justice;<br/><br/><br/><br/> After hearing in public session:<br/><br/> - the report by Mrs Isabelle Lemesle, State Councilor,<br/><br/> - the conclusions of Mr. Alexandre Lallet, public rapporteur;<br/><br/> The floor having been given, before and after the conclusions, to the SCP Baraduc, Duhamel, Rameix, lawyer of the Sergic Company;<br/><br/><br/><br/><br/> Considering the following:<br/><br/> 1. It follows from the instruction that the National Commission for Informatics and Freedoms (CNIL), following a report indicating the existence of a security defect allowing unauthorized third parties to access the personal data of candidates for the rental of real estate who have downloaded documents from the site www.sergic.com, commissioned on September 7, 2018 an online control mission on the processing implemented by the company study and realization of real estate management of construction (SERGIC), on the occasion of which was noted a breach of the provisions of the law of January 6, 2018 relating to data processing, files and freedoms and regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46 / EC, GDPR, of which the company was inf ormée the same day. During an on-site control mission on September 13, 2018, the CNIL delegation noted that this security defect had not been remedied. The president of the CNIL then initiated a sanction procedure against the company SERGIC. By deliberation n ° 2019-995 of May 28, 2019, the restricted formation of the CNIL imposed on the company SERGIC a fine of 400,000 euros and decided to make this sanction public for a period of two years from its publication before anonymization.<br/><br/> 2. First, article 44 of the law of January 6, 1978 relating to data processing, files and freedoms, in the wording applicable to the dispute, now article 19 of the same law, provides that: " I. - The members of the National Commission for Informatics and Freedoms as well as the agents of its authorized services (...) / Apart from on-site inspections and upon summons, they can make any useful finding; they can in particular, from an online communication service to the public, consult the data freely accessible or made accessible, including through recklessness, negligence or the act of a third party, where applicable by accessing and staying in automated data processing systems for the time necessary for the findings; they can transcribe the data by any appropriate processing into documents that can be directly used for control purposes (...) ". It follows from these provisions that to transcribe the data of an online public communication service, the members of the CNIL and its authorized agents, as part of their control missions, can download the files made accessible by a lack of security. It follows that it is right that the restricted formation of the CNIL rejected the request of the company SERGIC tending to declare null and void the findings made online by the agents of the CNIL on September 7, 2018.<br/><br/> 3. Secondly, under the terms of article 45 of the law of January 6, 1978, in the wording applicable to the dispute, now article 20 of the same law: "I. - The president of the National Commission of IT and Civil Liberties may warn a controller or his subcontractor of the fact that the processing operations envisaged are likely to violate the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 cited above or of this law./ II. - When the data controller or his subcontractor does not comply with the obligations resulting from the aforementioned Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 or of this law, the president of the National Commission for Informatics and Freedoms may, if the breach noted is liable to be brought into conformity, issue a formal notice to him, within the time limit he sets: (...) ./ III. - When the person responsible for processing or its subcontractor does not comply with the obligations resulting from the aforementioned Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 or from this law, the President of the National Commission for Informatics and Freedoms may also, (...) if necessary in addition to a formal notice provided for in II, seize the restricted committee of the committee with a view to pronouncing, after contradictory procedure, one or more of the following measures: / (...) 7 ° With the exception of cases where the processing is implemented by the State, an administrative fine not exceeding 10 million euros or, in the case of a company, 2% of the total worldwide annual revenue from the previous fiscal year, whichever is greater. Under the assumptions mentioned in 5 and 6 of article 83 of the aforementioned Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016, these ceilings are raised, respectively, to 20 million euros and 4% of said turnover. The restricted formation takes into account, in determining the amount of the fine, the criteria specified in the same article 83 (...) ". It clearly follows from these provisions that the pronouncement of a sanction by the restricted formation of the CNIL is not subject to the prior intervention of a formal notice from the controller or his subcontractor by the president of the CNIL. It follows that the plea alleging that the president of the CNIL would have disregarded the provisions of III of article 45 of the law of 6 January 1978 by entering the restricted committee without sending the applicant company a prior formal notice, can only be ruled out.<br/><br/> 4. Thirdly, under the terms of article 5 of the GDPR: "1. Personal data must be: (...) / e) kept in a form allowing the identification of the persons concerned for a period n '' not exceeding that necessary for the purposes for which they are processed; personal data may be kept for longer periods to the extent that they will be processed exclusively for archival purposes in the public interest, for the purposes of scientific or historical research or for statistical purposes in accordance with Article 89 (1), provided that the appropriate technical and organizational measures required by this Regulation are implemented in order to guarantee the rights and freedoms of the data subject (limitation conservation) (...) ". It follows from the instruction, on the one hand, that the purpose for which the personal data of rental applicants are kept and processed by the company SERGIC is the monitoring of applications for the rental of real estate and, on the other hand, that the CNIL's control missions revealed that the documents sent by people wishing to rent a property were kept, without intermediate archiving, to take into account the six-year limitation period for actions in discrimination. Therefore, considering that the data retention period significantly exceeded that necessary to achieve the purpose of the processing, without any intermediate archiving solution, which would have made it possible to retain the data necessary for the management of '' a possible litigation, has not been set up, the restricted formation of the CNIL did not disregard the provisions of e) of 1 ° of article 5 of the GDPR, nor taint its deliberation of manifest error of appreciation or insufficient motivation.<br/><br/> 5. Finally, under Article 83 of the GDPR: "1. Each supervisory authority shall ensure that administrative fines imposed under this article for violations of this Regulation referred to in paragraphs 4, 5 and 6 are, in each case, effective, proportionate and dissuasive. / 2. (...) In deciding whether to impose an administrative fine and in deciding on the amount of the administrative fine, due account shall be taken , in each individual case, of the following: a) the nature, gravity and duration of the breach, taking into account the nature, scope or purpose of the processing concerned, as well as the number of data subjects affected and the level of damage they suffered; b) whether the breach was committed willfully or through negligence; c) any action taken by the controller or processor to mitigate the damage suffered by individuals concerned; d) the degree of responsibility of the respo nsable of the processing or the processor, taking into account the technical and organizational measures they have implemented pursuant to Articles 25 and 32; e) any relevant breach previously committed by the controller or processor; (f) the degree of cooperation established with the supervisory authority with a view to remedying the violation and mitigating any negative effects thereof; g) the categories of personal data affected by the breach; (h) how the supervisory authority became aware of the breach, including whether, and to what extent, the controller or processor notified the breach; (...) / 3. If a controller or a processor deliberately or negligently violates several provisions of this Regulation, within the framework of the same processing operation or related processing operations, the total amount of the administrative fine may not exceed the amount set for the most serious violation. / (...) 5. Violations of the following provisions shall be subject, in accordance with paragraph 2, to administrative fines of up to EUR 20,000,000 or, in the case of an enterprise, up to at 4% of the total worldwide annual turnover of the previous financial year, whichever is greater: / a) the basic principles of processing, including the conditions applicable to consent under Articles 5, 6, 7 and 9 (...) ".<br/><br/> 6. It follows from the instruction that the shortcomings noted by the restricted training of the CNIL consisted, on the one hand, of a security defect of the site www.sergic.com allowing, as was said in point 1, to unauthorized third parties to access, by means of a simple modification of URL links, several hundred thousand documents downloaded by tens of thousands of applicants for the rental of housing, such as payslips, notices of imposition, proof of identity or marriage or divorce certificates, which contain personal data which, without necessarily being sensitive data within the meaning of the GDPR, concern the privacy of individuals, and on the other hand, in keeping these data for an excessive period of time in relation to the purpose pursued by their processing. In view of the nature and seriousness of the breaches noted that it would have been possible to prevent by simple security measures, such as the authentication of users of the processing, as well as by archiving measures, to the means available to the company to remedy this and within the timeframe with which it has taken the necessary corrective measures, the restricted CNIL formation did not inflict a disproportionate sanction on SERGIC by pronouncing against it a financial penalty in the amount of 400,000 euros, representing less than 1% of its turnover for the year 2017 and 4% of the sanction ceiling, accompanied, to ensure its dissuasive character and inform users of the processing concerned of the risks they have been exposed to, d '' an additional sanction consisting of its publication for a period of two years before its anonymization.<br/><br/> 7. It follows from all of the above that SERGIC is not justified in requesting the annulment of the deliberation it attacks. His request must be rejected, including his conclusions tending to the application of article L. 761-1 of the code of administrative justice.<br/><br/><br/><br/><br/> DECIDES:<br/> --------------<br/><br/> Article 1: The request of the company of study and realization of real estate management of construction is rejected.<br/><br/> Article 2: This decision will be notified to the company of study and realization of real estate management of construction and to the National Commission of data processing and freedoms.<br/><br/><br/><RECH_ECLI> ECLI: FR: CECHR: 2020: 433311.20201104</RECH_ECLI></div></div><div class="frame-block print-sommaire abstract"><h2 class="title"> Analysis</h2><ul class="button-expand"><li><h3> <button type="button" aria-expanded="false"><span class="icon" aria-hidden=true></span>Abstrates</button></h3><div class="js-child texte"> 26-07-10-03 CIVIL AND INDIVIDUAL RIGHTS. - FACULTY, FOR THE CNIL, TO SANCTION WITHOUT PRIOR NOTICE OF A TREATMENT MANAGER - EXISTENCE, EVEN WHEN THE FAILURE IS REGULARIZABLE [RJ1].<br/></div></li><li><h3> <button type="button" aria-expanded="false"><span class="icon" aria-hidden=true></span>summary</button></h3><div class="js-child texte"> 26-07-10-03 It follows clearly from III of article 45 of law n ° 78-17 of January 6, 1978 in the wording applicable to the dispute, now article 20 of the same law, that the pronouncement of '' a sanction by the restricted formation of the National Commission for Informatics and Freedoms (CNIL) is not subject to the prior intervention of a formal notice from the controller or his subcontractor by the president of the CNIL.</div></li><li><h3> <button type="button" aria-expanded="false"><span class="icon" aria-hidden=true></span>Case-law references</button></h3><div class="js-child texte"> [RJ1] Comp., Under the empire of article 45 in its drafting prior to law n ° 2018-493 of June 20, 2018, CE, April 17, 2019, Société Optical Center, n ° 422575, T. pp. 756-952.</div></li></ul></div></div></div><!-- Marquage Xiti. --><script>
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