Ikea fined for spying on staff and customers in France

The furniture company’s French subsidiary used espionage to identify ‘trouble-maker’ employees

FILE - In this Wednesday, Nov. 30, 2013 file photo, customers leave an IKEA store in Plaisir, west of Paris. A French court has ordered home furnishings giant Ikea to pay more than $1.2 million in fines and damages Tuesday, June 15, 2021 over a campaign to spy on union representatives. (AP Photo/Remy de la Mauviniere, FIle)
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Furniture retailer Ikea has been fined €1 million ($1.2m) for spying on hundreds of workers and unhappy customers as part of a campaign to collect data on union representatives.
Two former executives convicted for their part in the spying scandal were fined and given suspended prison sentences.
Ikea's French subsidiary set up an elaborate system to spy on hundreds of employees and job applicants between 2009 and 2012, and to profile unhappy customers, using private detectives and police sources, the court was told.

In disputes with customers, the company would trawl for data on people's finances and the cars they drove, the court heard.
"In France, it's rare that big companies are convicted like this and therefore I am happy," said whistleblower Adel Amara, a former Ikea employee.
"It's true that €1m for Ikea is nothing at all. But it is symbolic and we must be happy with our judicial system in France because the justice system is here for the citizens and it has shown today that is has reacted.

"It's true that €1m is not a lot but people have been convicted and it's a start."
The French subsidiary of Ingka Holding, which owns Ikea stores worldwide, was accused of snooping on its workers and customers.
Jean-Francois Paris, the executive in charge of risk management at the time of the spying, said that up to €630,000 a year was set aside for such investigations.
About 400 employees became targets of the programme, state prosecutor Pamela Tabardel told the court.

(FILES) In this file photograph taken on September 20, 2005, Jean-Louis Baillot, then Director General of Ikea France poses in Montpellier, southern France. A French court on June 15, 2021, has found the French subsidiary of Swedish furniture giant Ikea guilty of setting up an elaborate system to illegally spy on hundreds of employees and job applicants from 2009 to 2012. The company's French unit was fined one million euros ($1.2 million) and former CEO Jean-Louis Baillot was handed a suspended two-year prison sentence, the court said in its verdict.
 / AFP / DOMINIQUE FAGET
Jean-Louis Baillot was handed a suspended prison sentence. AFP

"What's at stake is the protection of our private lives against the threat of mass surveillance," she said during the trial.
Paris was convicted of fraudulently gathering personal data, fined €10,000 and received an 18-month suspended sentence.

Former Ikea France chief executive Jean-Louis Baillot was convicted of receiving fraudulently collected data and complicity in the scheme. He was fined €50,000 and given a two-year suspended sentence.
"This has set up a red light, if I may say. It doesn't prevent you from going through a red light, but this is nevertheless a clear warning," said Solenne Debarre, a lawyer for the plaintiffs.
The flat-pack furniture group, which has recognised there were some improper practices, was accused of breaching employees' privacy by looking at records of their bank accounts and sometimes using fake employees to write up reports on staff.

Baillot, who was in charge from 1996 to 2002, denied any wrongdoing during the trial that began in March in the Paris suburb of Versailles.

He said he was "shocked" by the ruling and is weighing an appeal, said his lawyer, Francois Saint-Pierre.

The trial focused on spying allegations that dated from 2009 to 2012, but prosecutors say the system was set up nearly a decade earlier under Baillot's watch.