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2023-10-01T11:02:10+08:00,fbd32491db44d3d0c97aa12a99cefd61ec954264,195,195,1,952,"A financial penalty of $6,000 was imposed on Actxa for breach of Section 13 (Consent Obligation) and Section 18 (Purpose Limitation Obligation) of the PDPA.","[""Consent"", ""Purpose Limitation"", ""Financial Penalty"", ""Wholesale and Retail Trade""]",2018-04-19,https://www.pdpc.gov.sg/-/media/Files/PDPC/PDF-Files/Commissions-Decisions/Grounds_of_Decision_Actxa_190418.pdf,"Consent, Purpose Limitation",Breach of Consent and Purpose Limitation Obligations by Actxa,https://www.pdpc.gov.sg/all-commissions-decisions/2018/04/breach-of-consent-and-purpose-limitation-obligations-by-actxa,2018-04-19,"PERSONAL DATA PROTECTION COMMISSION
[2018] SGPDPC 5
Case No DP-1611-B0320
In the matter of an investigation under section 50(1)
of the Personal Data Protection Act 2012
And
Actxa Pte. Ltd.
… Organisation
DECISION
Actxa Pte. Ltd.
[2018] SGPDPC 5
Actxa Pte. Ltd.
[2018] SGPDPC 5
Tan Kiat How, Commissioner — Case No DP-1611-B0320
19 April 2018
Background
1
Organisations are increasingly integrating information technology
components and computer network connectivity into the products they develop
(“connected devices”). The embedded technology and connectivity helps turn
ordinary products, such as a weighing scale, into a “smart” version of the
product with the ability to collect and transfer data wirelessly through the
network.
2
These connected devices have the potential to offer a multitude of
benefits to improve the lives of users of these devices. A “smart” refrigerator
may be able to understand your grocery shopping habits, alert you when you are
low on ingredients you commonly use and order these ingredients from an
online grocery store and pay for the purchase. A “smart” pacemaker may warn
you when you have an impending heart attack, notify the nearest hospital and
call for an ambulance.
3
Organisations may use multiple connected devices to collect users’
personal data. This would assist organisations in providing an integrated suite
of services. As an example, an organisation may collect your body
measurements from a “smart” weighing machine and your dietary preferences
1
Actxa Pte. Ltd.
[2018] SGPDPC 5
from your “smart” refrigerator and suggest the amount of daily exercise you
should undertake to maintain a healthy body weight through your “smart”
watch. Some of these organisations may rely on a single document to notify
users of the purposes, and obtain consent, for the collection, use and disclosure
of personal data collected through these connected devices and across different
platforms. To be clear, there is nothing wrong with this practice. However, such
organisations need to ensure that they comply with their notification and consent
obligations across all these different connected devices and any other platforms
or sources used to collect personal data.
4
In this matter, Actxa Pte. Ltd. (“the Organisation”), which sells
healthcare and fitness related Internet of Things (“IoT”) devices, such as
“smart” weighing scales, relied on its website’s privacy policy to notify its
customers of the purposes, and to obtain the customers’ consent, for the
collection of personal data across all the Organisation’s platforms. The
Organisation did not have separate privacy policies, or other documentation,
relating to the collection, use and disclosure of personal data collected through
the IoT devices it develops and sells.
5
The issue for determination in this case is whether the Organisation, via
its website’s privacy policy, sufficiently notified its customers of the purposes,
and obtained the customers’ valid consent, for the collection, use and disclosure
of personal data collected through the IoT devices the Organisation develops
and sells.
Material Facts and Documents
6
The IoT devices which the Organisation develops and sells include (a) a
“smart” weighing machine (the “Scale”), marketed under the brand “Sense
Smart Scale”, that uses bioelectrical impedance analysis technology to measure
2
Actxa Pte. Ltd.
[2018] SGPDPC 5
bone mass, muscle mass, total body fat and total body water, as well as (b)
wearable fitness trackers (collectively, the “Fitness Trackers”), marketed
under the brands “Actxa Swift” and “Actxa Swift+”, that use built-in
accelerometers to wirelessly detect movements of the user to track the user’s
activity levels throughout the day.
7
These IoT devices collect data via sensors fitted to these devices. A user
can download and install an app (the “Actxa App”) onto his mobile device,
create his user account, and link the IoT devices to his user account. Thereafter,
the user can access the data collected by the IoT devices through the Actxa App
to monitor his health data, such as sleep pattern, heart rate and weight trends.
The Actxa App will reflect the data collected by the IoT devices; though the
data may also be amended by the user. The data is automatically collected by
the Organisation’s servers through the Actxa App.
Personal Data collected through the Actxa App and the IoT devices
8
When a user downloads the Actxa App and creates an account, the user
will be asked to submit the following personal data via the Actxa App: name;
email; password (encrypted); gender; date of birth; height; weight; profile
picture (optional); and country (“Personal Data Set A”). This type of personal
data is often referred to as declared data.
9
The Scale collects the following personal data: weight; height; Body
Mass Index (“BMI”); total body water; total body fat; bone mass; and muscle
mass (“Personal Data Set B”). It is possible for the Scale to be used
independently of the Actxa App, in which case it will operate as a simple and
unconnected weighing scale.
3
Actxa Pte. Ltd.
10
[2018] SGPDPC 5
The Fitness Trackers collect the following personal data: steps and goal;
calories and goal; distance and goal; active minutes and goal; sleep duration and
goal; start of sleep (date and time); end of sleep (date and time); sleep duration;
and raw sleep data (“Personal Data Set C”).
11
Personal Data Sets B and C are typically referred to as observable data
as these are collected through sensors either in the Scale or Fitness Trackers.
The volume of observable data that is collected through regular usage of the
Scale or Fitness Trackers will be much higher than declared data in Personal
Data Set A. For convenience the defined terms “Personal Data Set A”, “Personal
Data Set B” and “Personal Data Set C” will be collectively referred to as
“Personal Data” in this decision.
12
At the material time, a total of 2,609 customers had downloaded and
used the Actxa App, out of which 40 customers were users of the Scale and
2,569 customers were users of the Fitness Trackers.
The Complaint
13
A complaint was made to the Personal Data Protection Commission
(“Commission”) on 7 November 2016 by an individual (the “Complainant”)
alleging that the Organisation failed to notify him of, and obtain his consent for,
its collection of his personal data.
14
The Complainant’s spouse had bought a Scale from the Organisation’s
website (the “Website”) on or around 2 November 2016. The Complainant
downloaded the Actxa App, created an account and profile, and started using
the Scale around the same time.
4
Actxa Pte. Ltd.
15
[2018] SGPDPC 5
On 5 November 2016, the Complainant sent an email to the Organisation
requesting a refund for the Scale, alleging that the Actxa App transferred the
Complainant’s personal data to the Organisation’s server without the
Complainant’s knowledge or consent.
16
In response to the Complainant’s request, the Organisation deleted the
Complainant’s account, removed all his personal data from its server, and
provided the Complainant with a full refund for the Scale.
The Organisation’s Privacy Policy
17
At the time when the complaint was made, the Organisation had a
privacy policy that was effective from September 2015 (“Privacy Policy”). All
users of the Actxa App (“Actxa App users”) were required to agree to this
Privacy Policy before they were allowed to use the Actxa App. The
Organisation confirmed that all Actxa App users, regardless of which IoT
device they were using, were required to agree to the same Privacy Policy.
Notably, the Privacy Policy did not contain any references to the collection, use
and disclosure of personal data through the Actxa App, Scale or other IoT
devices, and instead only referenced the Actxa Website.
18
However, after the complaint was made, the Organisation issued a
revised privacy policy which took effect from 13 December 2016 (“Revised
Privacy Policy”), and included specific references to the Actxa App and details
on the types of personal data that it collected, used and disclosed. According to
the Organisation, all Actxa App users have been notified of the Revised Privacy
Policy via email.
5
Actxa Pte. Ltd.
[2018] SGPDPC 5
Commissioner’s Findings and Basis for Determination
19
The issues to be determined in this case are:
(a)
whether the Organisation failed to obtain the consent of the
Complainant and other Actxa App users before collecting and/or using
their personal data in breach of section 13 of the Personal Data
Protection Act 2012 (“PDPA”) (“Consent Obligation”); and
(b)
whether the Organisation failed to collect and use personal data
only for purposes that a reasonable person would consider appropriate
in the circumstances and for which the impacted individual has been
informed (“Purpose Limitation Obligation”).
Whether the Organisation is in breach of section 13 of the PDPA
20
Section 13 of the PDPA prohibits organisations from collecting, using
or disclosing personal data about an individual unless:
(a)
the individual gives, or is deemed to have given, consent under
the PDPA to such collection, use or disclosure; or
(b)
the collection, use or disclosure of the personal data without the
individual’s consent is required or authorised under the PDPA or any
written law.
21
In the present case, the Commissioner is of the view that the
Organisation did not obtain valid consent from the Complainant and other Actxa
6
Actxa Pte. Ltd.
[2018] SGPDPC 5
App users to collect Personal Data Sets B and C1 (collectively referred to as the
“Observed Personal Data”) and store the said personal data on the
Organisation’s servers. The Organisation represented to the Commissioner that
it collected the Personal Data of the Complainant and other individuals so that
the Actxa App would be able to “display, store and retrieve the data and present
historical data for the user’s consumption”.
22
The Organisation relies on its Privacy Policy to obtain consent for, and
notify the Actxa App users of, the collection, use and disclosure of Personal
Data. However, the Privacy Policy only made reference to the Website and did
not expressly address the collection, use and disclosure of personal data via the
Scale and other IoT Devices through the Actxa App. The first few sentences of
the Privacy Policy reads as follows:
“This Privacy Policy discloses the privacy practices for the Actxa
website (collectively, the “Website” located at www.actxa.com).
Actxa, the provider of the Website (referred to as “use” or “we”),
is committed to protecting your privacy online in compliance
with Personal Data Protection Ordinance (PDPO) (“PDPO”).
Please read the following to learn what information we collect
from you (the “User” or the “End User”) and how we use that
information…
…
“Information Gathering
Actxa only collects two types of information about our Website
Users: Personally Identifiable Information and Non-Personally
Identifiable Information.
Personally Identifiable Information. Personally Identifiable
Information is information that pertains to a specific End Use.
The information we collect includes but is not limited to your
name, email address, phone number to complete registration.
1
As will be discussed later at paragraphs [30] to [34], the Actxa App users are deemed
to have provided consent for the collection and use of Personal Data Set A by virtue of
section 15 of the PDPA.
7
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[2018] SGPDPC 5
We use this information to provide services and customer
support to you.”
[Emphasis added.]
23
There is no mention of the Actxa App throughout the entire Privacy
Policy nor any mention of how the Personal Data of Actxa App users may be
collected by the Organisation from the Actxa App. The complete absence of any
reference to the Actxa App in the Privacy Policy shows that the Privacy Policy
was only intended to govern the data collection activities undertaken through
the Actxa Website, and not the Actxa App nor the IoT Devices. The opening
statement of the Privacy Policy, makes express reference to the Actxa Website
(and even provides the URL link). In addition, the subsequent paragraph in the
“Information Gathering” portion of the Privacy Policy refers to information
collected from “Website Users” without any reference to users of the Actxa
App, Scale and other IoT Devices. From the above, it is clear from the wording
that the Privacy Policy was tailored to the Actxa Website, and the Organisation
made no effort to adapt the Privacy Policy to include the personal data
protection activities carried out through the Actxa App, Scale and other IoT
Devices.
24
The Organisation alleged that since the Privacy Policy would be shown
to the Actxa App users prior to their use of the Actxa App, the Actxa App users
would have known that the Privacy Policy was applicable to the Actxa App and
IoT devices, and not just the Website. However, in the Commissioner’s view,
this is not an acceptable practice. Displaying a Privacy Policy that has no
relevance to the Actxa App cannot amount to proper notification for the Actxa
App users, and consent, if any, that is obtained in this manner cannot be valid.
It may well be that consent obtained through pretence or obfuscation could
amount to a deceptive or misleading practice under section 14(2)(b) of the
PDPA. To be clear, there is nothing to suggest that in this case, the Organisation
8
Actxa Pte. Ltd.
[2018] SGPDPC 5
was any more culpable than mere omission. Pertinently, it is not a reasonable
nor acceptable practice to expect individuals who were shown the Privacy
Policy to figure out how the Organisation intends for the terms which are
tailored to collection of data from the Actxa Website to be adapted for the
collection, use or disclosure of personal data via the Actxa App, Scale and other
IoT Devices.
25
Compared to declared personal data in Personal Data Set A, the volume,
variety and velocity of generation (and collection) of the Observed Personal
Data is much higher. The feature set of the Actxa App is non-trivial and likely
to become more sophisticated with successive new releases. The use of the
Observed Personal Data can also be expected to change in tandem. Accordingly,
the purposes for which such personal data will be used should be properly
notified to the Actxa App users, in order to obtain their consent. In the
circumstances, the Organisation failed to obtain consent from the Actxa App
users for, and notify them of, the collection and use of the Observed Personal
Data before collection and, thus, the Organisation is in breach of section 13 of
the PDPA.
26
Other data protection authorities take similar positions in respect of
providing clear notification to users to obtain adequate consent. In Canada, the
Office of the Privacy Commissioner of Canada (“OPC”), in a case relating to
targeted advertising, emphasised the importance of providing clear notification
for adequate consent by stating the following:2
2
PIPEDA Report of Findings # 2013-017: Apple called upon to provide greater clarity
on its use and disclosure of unique device identifiers for targeted advertising
at fifth bullet point in the “Lessons Learned”
section at p 2.
9
Actxa Pte. Ltd.
[2018] SGPDPC 5
“Organizations must make a reasonable effort to ensure that
the individual is advised of the purposes for which their
personal information will be used. To make the individual’s
consent meaningful, the purposes must be stated in such a
manner that the individual can reasonably understand how the
information will be used or disclosed”.
27
The case above concerned a unique device identifier (“UDID”) that was
used by Apple Canada Inc. (“Apple”), and disclosed to third party app
developers via Apple’s iOS operating system, for the purpose of delivering
targeted advertising to iOS device users. The OPC considered the UDID to be
sensitive personal information as it could be used to create a detailed user
profile. Although Apple offered easily accessible opt-out options for the use of
the UDID with regard to the delivery of targeted advertising, the OPC found
Apple’s privacy policy to be insufficient as a form of notification as it contained
statements which were too broad and generalised. As a result, the OPC
recommended Apple to, amongst other things, amend its privacy policy to
inform its users in a manner that is “clear, apparent and understandable” how
it uses UDIDs to deliver advertising and interest-based ads.3
28
In another case, the OPC issued a report of its findings after an
investigation into the complaints filed by the Canadian Internet Policy and
Public Interest Clinic against Facebook Inc. (“Facebook”). The OPC found,
inter alia, that Facebook had not been clear or specific enough in its notification
to its users concerning the collection of a user’s date of birth (“DOB”) such that
the user had the necessary information to make an informed choice about
consent.4 As such, the OPC required Facebook to amend its privacy policy so
3
Ibid. at [48].
4
PIPEDA Report of Findings #2009-008: Report of Findings into the Complaint Filed
by the Canadian Internet Policy and Public Interest Clinic (CIPPIC) against Facebook
10
Actxa Pte. Ltd.
[2018] SGPDPC 5
as to better explain the purpose for which a user’s DOB is collected and used.
Facebook was also required to indicate in its pop-up notification that it collected
a user’s DOB for the purposes of targeted advertising.5
29
In the present case, the Commissioner notices that the first line of the
Organisation’s Privacy Policy makes explicit reference to the “Personal Data
Protection Ordinance (PDPO)”, which presumably refers to the main data
protection legislation in Hong Kong, instead of the PDPA, which is the main
data protection legislation in Singapore. This suggests that the Organisation may
not have had Singapore data protection law in mind when it was crafting its
Privacy Policy. The Commissioner understands that it is common for
organisations to adopt a consistent approach across all the jurisdictions in which
they have operations and/or presence through privacy policies which apply
across jurisdictions. Organisations are reminded that if they choose to adopt
such an approach, they should ensure that such privacy policies are compliant
with Singapore law.
Is the Complainant deemed to have consented to the collection and use of his
personal data?
30
In certain case, an individual may be deemed to have consented to the
collection, use and disclosure of his personal data even if he has not actually
given consent. Section 15(1) of the PDPA provides that an individual is deemed
to consent to the collection, use or disclosure of his personal data for a purpose
if:
Inc. Under the Personal Information Protection and Electronic Documents Act by
Elizabeth
Denham
Assistant
Privacy
Commissioner
of
Canada
at [51].
5
Ibid. at [56].
11
Actxa Pte. Ltd.
(a)
[2018] SGPDPC 5
the individual voluntarily provides the personal data to the
organisation for that purpose, and
(b)
31
it is reasonable that the individual would do so.
In the Commissioner’s view, the Complainant could be deemed to have
consented to the Organisation collecting, using and disclosing his Personal Data
Set A as he had voluntarily entered Personal Data Set A into the Actxa App
during the account and profile creation phase and it was reasonable that he
would provide the Organisation this personal data for purpose of setting up and
managing his account on the Actxa App.
32
However, in respect of Personal Data Set B, whilst the Complainant had
used the Scale and Actxa App voluntarily, he was unaware that his Personal
Data Set B was being collected by the Organisation and stored on the
Organisation’s servers. While the state of knowledge of the individual cannot
be the limiter on the scope of deemed consent, neither can the purposes for
which consent is deemed be so vague or broad that deemed consent ceases to
be meaningful. Deemed consent is intended to be relied on in situations where
the purpose for collection, use or disclosure of personal data is so clear that the
reasonable bystander would have assumed that the individual would ordinarily
have provided his consent. Deemed consent is helpful where the transaction is
not complex or where it is closely entwined with the performance of an
underlying contract. For example, supplying one’s payment details and shipping
details during an e-commerce transaction, or when engaging a courier to make
a delivery. Where the purpose for which consent is provided is clear, the scope
of the consent that is deemed can also be reasonably demarcated.
12
Actxa Pte. Ltd.
33
[2018] SGPDPC 5
In this case, the Commissioner considered the possibility that the
features of the Scale and the Actxa App collectively establishes the purposes
and that consent is deemed for this set of purposes. However, this approach may
possibly supplement an inadequate Privacy Policy but cannot be used to
construct an absent one for a set of complex functionalities and customer
relationship like the present. The feature set of the Actxa App can be expected
to change over time and Observed Personal Data will be used in different ways.
Further, the relationship between Organisation and customer may last
indefinitely, depending on the period of time the customer continues to use the
Scale and the Actxa App. These features militate against reliance on deemed
consent. In this case, as explained above, there is no Privacy Policy for the Scale
or the Actxa App and, for reasons just provided, deemed consent cannot be
relied on to create one by operation of law.
34
Similarly, other Actxa App users may be deemed to have consented to
the Organisation’s collection, use and disclosure of their Personal Data Set A,
but not their Observed Personal Data (depending on which IoT device they use)
for the same reasons articulated above. In the circumstances, the Organisation
is found to be in breach of the section 13 obligation for failing to obtain consent:
(a)
from the Complainant for the collection, use and disclosure of
his Personal Data Set B; and
(b)
from Actxa App users for the collection and use of Observed
Personal Data depending on which IoT device they use.
35
With more developers creating mobile apps, it is unsurprising that
guidance has been issued to guide app developers. In the United Kingdom, the
Information Commission’s Office (“ICO”) has published guidance for mobile
13
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[2018] SGPDPC 5
app developers, which states that “transparency about purpose is crucial”6 and
sets out important points that developers should take into consideration when
drafting notification to users in a mobile environment. In particular, the
guidance also highlights how organisations can give their users more control
over their privacy such as providing notification when their data is about to be
uploaded to the Internet:7
“If your app processes personal data in an unexpected way or
is of a more sensitive nature you might need to consider the use
of additional 'just-in-time' notifications or other alert systems
to inform the user what's happening. For example, if geolocation services are running in the background or you are
uploading data to the internet, consider using clear and
recognisable icons to indicate that this is occurring and where
necessary the option to stop (eg to cancel an upload).”
[Emphasis added.]
36
The use of just-in-time notifications in order to obtain consent
dynamically and in bite-sized portions (as opposed to a lengthy privacy policy)
is one of the ways that the Commission has recommended for adoption in its
Guide to Data Sharing.8
37
Similarly, the Office of the Privacy Commissioner for Personal Data of
Hong Kong (“PCPD”) has issued an information leaflet in which it highlights
6
UK, ICO, Privacy in mobile apps: Guidance for app developers (December 2013)
at p. 10.
7
Ibid. at p. 17.
8
PDPC, Guide to Data Sharing (27 July 2017) at [3.6] - [3.7].
14
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[2018] SGPDPC 5
the privacy implications that mobile app developers should consider, including
the designing of a privacy policy statement:9
“Privacy Policy Statement (PPS)
Apps Developers should prepare a PPS to outline their policies
and practices in relation to personal data. Technical terms and
elusive language should be avoided in the PPS. It should be
easily readable and easily understandable, and in appropriate
length. Its location on the mobile apps should be prominent. Its
availability also on the businesses’ normal websites is
recommended.
Giving examples in PPS
When describing the purposes for which the information is to
be used in the PPS, Apps Developers should consider giving
real-case examples (as opposed to generic statements) specific
to the mobile apps to assist mobile device users in
understanding why such information needs to be collected,
accessed or shared.
Relevance and Accuracy
Apps Developers should ensure that their PPS are accurate and
specific for individual mobile apps. If the description is vague
or unclear, the Apps Developers may be perceived as hiding the
real purpose of data collection and access. Similarly, if the PPS
is copied or extracted from a standard template or another
mobile app, Apps Developers have to review the contents to
ensure their relevance and accuracy.”
[Emphasis added.]
38
The Commissioner agrees with many of the general positions taken by
the PCPD. In this regard, a privacy policy for a mobile app should, amongst
other things:
(a)
aim to enhance a user’s understanding as to why certain personal
data needs to be collected, accessed or shared;
9
HK, PCPD, Personal data privacy protection: what mobile app developers and their
clients
should
know
(November
2012)
at p. 5.
15
Actxa Pte. Ltd.
(b)
[2018] SGPDPC 5
avoid technical terms and elusive language, be easily readable
and understandable, and be of an appropriate length;
(c)
be prominently located on the app;
(d)
consider using icons and/or just-in-time notifications to obtain
specific consent dynamically; and
(e)
be reviewed carefully to ensure relevance and accuracy if a
standard template is used.
Whether the Organisation is in breach of section 18 of the PDPA
39
Section 18 of the PDPA allows organisations to collect, use and disclose
personal data only for purposes which a reasonable person would consider
appropriate in the circumstances and for which the impacted individual has been
notified.
40
Given that the Commissioner has found above, at paragraph 25, that the
Organisation failed to notify Actxa App users of the collection, use and
disclosure of the Observed Personal Data before collecting the said personal
data, the Organisation is in breach of section 18 of the PDPA for the same
reasons set out above to substantiate a breach of the Organisation’s section 13
obligations.
Enforcement Action by the Commissioner
41
Given that the Organisation has been found to be in breach of sections
13 and 18 of the PDPA, the Commissioner is empowered under section 29 of
the PDPA to give the Organisation such directions as it deems fit to ensure the
Organisation’s compliance with the PDPA. This may include directing the
16
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[2018] SGPDPC 5
Organisation to pay a financial penalty of such amount not exceeding S$1
million as the Commissioner thinks fit.
42
In assessing the breach and determining the directions to be imposed to
the Organisation in this case, the Commissioner took into account the following
mitigating factors:
(a)
the Organisation had accepted the complaint in good faith and
taken prompt steps to broaden the coverage of its Privacy Policy. The
Revised Privacy Policy now makes explicit mention of the “Actxa App”
and the types of personal data that the Actxa App would collect from the
Actxa App users. Hence, the consent obtained and notification provided
by the Organisation is now directly relevant to the Actxa App;
(b)
the Organisation had cooperated fully with investigations and
was forthcoming in providing information to the Commission;
(c)
there were no other complaints received from other Actxa App
users, besides the Complainant; and
(d)
the Organisation had engaged the Complainant in a meaningful
manner, and voluntarily offered a refund which the Complainant
accepted.
43
The Commissioner also took into account the following aggravating
factors:
(a)
the breach involved sensitive health-related personal data such
as an individual’s weight, height, and BMI; and
17
Actxa Pte. Ltd.
(b)
[2018] SGPDPC 5
the personal data of a total of 2,609 Actxa App users were
potentially compromised or put at risk.
44
The Commissioner has carefully considered the relevant factors of this
case and hereby directs the Organisation to pay a financial penalty of S$6,000
within 30 days from the date of the Commissioner’s direction, failing which
interest shall be payable on the outstanding amount of such financial penalty.
YEONG ZEE KIN
DEPUTY COMMISSIONER
FOR COMMISSIONER FOR PERSONAL DATA PROTECTION
18
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