Business sign of a Tim Horton’s cafeteria.
Business sign of a Tim Horton’s cafeteria.
Photo by Roberto Machado Noa/LightRocket via Getty Images

Tim Hortons, the Canadian fast food chain accused of using its mobile app to collect " vast amounts of sensitive location data" in violation of Canadian privacy laws, says it has reached a proposed settlement in the resulting class action lawsuits. The chain wants to give affected users a free hot beverage and a free baked good in order to make up for tracking users.

The email detailing the proposed settlement was sent to customers on Friday. The email says you are receiving it in connection with a proposed settlement of a national class action lawsuit involving the Tim Hortons app. A free hot beverage and a free baked good will be given to eligible app users.

Tim Hortons will offer the drink and snack at a retail price of $6.19 Canadian dollars and $2.39 Canadian dollars plus taxes, as well as permanently removing all information about group members. The proposed settlement is not an admission of wrongdoing and the allegations have not been proven in a court of law according to the restaurant chain.

A reporter for the National Post found that the app had tracked their location over the course of five months. Canadian privacy watchdogs found that the app misled users into thinking they would only be tracked while using the app. Tim Hortons was able to deduce where they lived, where they worked, and when they visited competing restaurants by tracking them all day.

The company initially planned to use this information for targeted advertising, but ended up using it to analyze user trends, like working out when they might switch to another coffee chain. Canada's privacy commissioner said that Tim Hortons clearly crossed the line by amassing a huge amount of highly sensitive information about its customers. It was clear that following people's movements every few minutes of every day was not a good idea.

A representative for the chain told Vice that they were pleased to have reached a proposed settlement in the class action lawsuits. A free hot beverage and a free baked good will be given to eligible app users.

The Superior Court of Quebec is expected to make a decision on the proposal soon. The courts in British Columbia and Ontario are expected to recognize the settlement once the Quebec court approves it.