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Cosmetics business fined €15.9 million for deleted WhatsApp message

Investigations August 26, 2024

The importance of accurately recording business data and maintaining business records has been emphasised by a recent fine handed down by the European Commission to company International Flavors & Fragrances Inc and International Flavors & Fragrances France SAS (IFF).

International Flavours & Fragrances were fined €15.9 million, or 0.15% of its turnover by the Commission in June this year after it emerged that a senior employee at the company intentionally deleted WhatsApp messages during an antitrust investigation.

The European Commission has the power to investigate and enforce competition law rules within the common market and has the power to fine corporations up to 1% of their turnover where it finds that the corporation has obstructed its investigation.

The fine was initially assessed at 0.3% of IFF’s turnover but was reduced to 0.15% to reflect IFF’s subsequent cooperation in the investigation.

The deleted WhatsApp messages – between an employee of IFF and a competitor – were discovered by the Commission following a “dawn raid” by anti-trust investigators in March 2023.

It is the first time that the Commission has imposed a fine for deleted WhatsApp messages.

This case highlights the importance of maintaining proper notes and records, be they in paper or digital form, and illustrates that records can extend to messaging apps and social media platforms.

La Touche Training routinely works with clients from a myriad of different industries and agencies in training employees in the importance of good record keeping, their responsibilities in law, particularly in the domain of GDPR, and also under professional codes of conduct.

The fine imposed on IFF was for obstructing an EU antitrust investigation but it easily to envisage other regulatory investigators or law enforcement agencies taking a similar attitude in Ireland.

WhatsApp, instant messaging and other messaging apps all potentially contain client, business or patient information, and its integrity needs to be treated in the same way as paper or traditionally electronically recorded data, such as electronic databases.

At La Touche Training, we specialise in educating businesses on the legal responsibilities of record keeping, GDPR compliance, and professional conduct.

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