"Serious deficiencies": consumer advocates issue warning to operators of Clubhouse app

The audio app Clubhouse is coming under pressure due to data protection deficiencies. Consumer protectionists sent the operator a warning.

Berlin, Germany: The Federation of German Consumer Organizations (VZBV) is taking legal action against the operator of the social media app Clubhouse because of various shortcomings. For example, "serious deficiencies" in data protection are being complained about, VZBV head Klaus Müller announced on Twitter.

In addition, the association complains that the platform does not have an imprint and thus violates the General Data Protection Regulation (DSGVO). In addition, the General Terms and Conditions (GTC) are only available in English. "The VZBV objects to these points in its warning letter to the operator of Clubhouse and demands the submission of a cease-and-desist declaration with a penalty clause," says Müller.

The application comes from Alpha Exploration Co. in Oakland in the US state of California. In the warning it concerns above all data security. The Clubhouse operator claims the right to make extensive use of the contact information uploaded by users from the address books of their smartphones and to bother the contacts with advertising, for example. Clubhouse thus violates the GDPR.

If the app operator does not respond to the warning or refuses to sign the cease-and-desist declaration, the German association could bring an action before the Berlin Regional Court and have a fine imposed there.

Clubhouse is a social media app from the USA in which users can participate in talk shows. Clubhouse was recently criticized for asking for access to users' contacts. This is to enable users to find acquaintances on the app more quickly. One can also deny access to the address book when logging in.

Minister of State Bär defends app

The Minister of State in the Federal Chancellery and Federal Government Commissioner for Digitalization, Dorothee Bär (CSU), defended the app against criticism. "Of course, Clubhouse also has to act in accordance with the law, be it in terms of data protection or with regard to hate and incitement on the net," Bär told Handelsblatt. "But I think it would be wrong to smash every digital innovation right from the start with the data protection club - especially when there is still no agreement, even among lawyers, on how the app should be conclusively evaluated in terms of data protection law."

As with all innovations, a new format of this kind harbors not only opportunities but also risks, Bär continued. However, she added, every user "can of course also decide to deny access to his or her contacts and to forego the possibility of inviting other people."

Most recently, the chairwoman of the data protection conference of the federal and state governments, Monika Grethel, had expressed reservations about the app. For example, the option of granting Clubhouse access to one's contacts and thus providing the service with contact information of people who are not themselves participants in the service "should be viewed critically in principle," Grethel told Redaktionsnetzwerk Deutschland.

"The same applies to a registration or authentication with Clubhouse via another social media account of an invited participant." What happens to the contact and account information remains largely opaque.

Exchange "in convivial company"

Grethel stressed that it was not a question of imposing guidelines on users for the private use of an app or a service. However, if - as in the case of Clubhouse - not only one's own data is involved, but also the data of other, uninvolved people, "an upload of contact information of third parties meets with data protection concerns." Insofar as the use of the service is possible without making other people's data available, users should refrain from uploading it or exclude it through specific measures.

Meanwhile, Minister of State Bär praised the audio app's "join-in function," which allows people to exchange ideas virtually but still "in a convivial atmosphere" in times of lockdown. Clubhouse, he said, also offers policymakers a chance to get together with people and have "spontaneous informal debates" from anywhere, at any time. "Such conversations are particularly exciting when people with a wide range of experiences and backgrounds come together," the Minister of State said.

Together with Chancellery Chief Helge Braun (CDU), Bär took questions on the platform today to explain the German government's new digital strategy. The appearance previously raised questions from journalists in light of criticism of Clubhouse's privacy policies. Bär defended going to Clubhouse and called for more courage in trying out new communication channels.