Cologne Court Threatens Snap With 250,000 Euro Fine Over Chatbot Data
Snap faces a potential fine of up to 250,000 euros if it fails to comply with a ruling handed down by the Regional Court of Cologne. The court found that the company’s terms of service for its AI chatbot violated European data protection laws. As heise.de reported, the platform lacked the basic legal prerequisites for processing user data, relying instead on pre-ticked consent boxes to harvest personal information for targeted advertising.
Judges Reject Defenses on Advertising and User Consent
The judges in Cologne dismissed Snap’s argument that the data was utilized exclusively for personalized advertising purposes. The court also rejected the defense that users essentially forced the data upon the platform. According to Snap’s own disclosures, the company captures all chat content generated by users to feed its ad-targeting algorithms.
Unlawful Processing Despite Initial Notices
The bench ruled that this processing remains unlawful even when the AI chatbot displays an initial data processing notice before its first use. Furthermore, the legal doctrine of legitimate interest failed to justify the company’s actions.
Federation of German Consumer Organisations Secures Injunction
The legal challenge was brought forward by the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband), which successfully sought an injunction against Snap. European data protection laws explicitly grant consumer associations this enforcement mechanism.
Digital Services Act and Right to Appeal
Additional statutory prohibitions now govern the processing of minors’ data for advertising under the European Union’s Digital Services Act. The regulation also imposes extensive due diligence obligations on very large online platforms to identify and mitigate specific platform risks. However, the DSA had not yet entered into force when the consumer protection organization initially issued its warning to Snap. Snap retains the right to appeal the late-September ruling, registered under docket number AZ 33 O 120/24, before higher judicial instances.
