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France Investigates Allegations Against Ikea Executives France Investigating Ikea on Spying Allegations
(35 minutes later)
PARIS — Three senior Ikea executives in France have been placed under investigation by prosecutors amid allegations that they authorized illegal snooping on the backgrounds of employees and customers. PARIS — Prosecutors have placed three senior Ikea executives in France under investigation amid allegations that they authorized illegal spying on employees and customers.
In a case that raises uneasy questions here about the sharing of data between law enforcement and the private sector, French prosecutors said this week that the chief executive of Ikea France, Stefan Vanoverbeke, and two other people were being investigated for their possible involvement in an alleged conspiracy to collect a range of personal information, including automobile registrations, property records and criminal records. The well-publicized case has raised uneasy questions here about the sharing of data between law enforcement and businesses. French prosecutors said this week that the chief executive of Ikea France, Stefan Vanoverbeke, and two other people were being investigated for possible involvement in a conspiracy to collect a range of personal information, including criminal records, automobile registrations and property records.
The information allegedly was collected to check up on employees or to dig up unflattering background information on customers bringing complaints or lawsuits against the company, a Swedish home furnishings giant with operations in more than 40 countries. The prosecutors said the information was collected to check on employees or to reveal unflattering background information about customers bringing complaints or lawsuits against Ikea, a Swedish home furnishings giant with operations in more than 40 countries.
Mr. Vanoverbeke’s predecessor as chief executive, Jean-Louis Baillot, and Ikea France’s current chief financial officer, Dariusz Rychert, were also placed under investigation, as were two unnamed police officers. Ikea France itself has been ordered to post a bond of 500,000 euros, or $673,000, while the inquiry continues, raising the possibility that the company could face legal action as well.Mr. Vanoverbeke’s predecessor as chief executive, Jean-Louis Baillot, and Ikea France’s current chief financial officer, Dariusz Rychert, were also placed under investigation, as were two unnamed police officers. Ikea France itself has been ordered to post a bond of 500,000 euros, or $673,000, while the inquiry continues, raising the possibility that the company could face legal action as well.
Under the French legal system, being placed under formal investigation is one step short of criminal charges.Under the French legal system, being placed under formal investigation is one step short of criminal charges.
Government records on individuals are strictly protected under French law, and allegations that they may have been shared with a private company have raised hackles with labor unions and consumer groups. Government records on individuals are strictly protected under the law, and allegations that they may have been shared with a private company have raised hackles with labor unions and consumer groups.
The three men were taken in for questioning on Monday by investigators in Versailles, near Paris, and were formally placed under investigation late Tuesday. The move followed a police search of the headquarters of Ikea France in nearby Plaisir last month, as well as interviews earlier this year with about a dozen witnesses that included current and former Ikea employees and police officers. The three men were taken in for questioning on Monday by investigators in Versailles, near Paris, and were formally placed under investigation late Tuesday. The move followed a police search of the headquarters of Ikea France in nearby Plaisir last month, as well as interviews earlier this year with about a dozen witnesses including current and former Ikea employees and police officers.
Marie Antoinette Gallimard, a spokeswoman for Ikea France, said Thursday that the company took the allegations seriously and was cooperating fully with investigators. She added that Mr. Vanoverbeke and Mr. Rychert would continue in their jobs while the inquiry proceeded. Marie Antoinette Gallimard, a spokeswoman for Ikea France, said on Thursday that the company took the allegations seriously and was fully cooperating with investigators. She added that Mr. Vanoverbeke and Mr. Rychert would continue in their jobs while the inquiry proceeded.
Alexis Gublin, a lawyer for Mr. Vanoverbeke, said his client denied any involvement in the alleged spying and was cooperating with investigators. Alexis Gublin, a lawyer for Mr. Vanoverbeke, said his client denied any involvement in spying and was cooperating with investigators.
Allegations of the spying scandal follows other unflattering publicity that has befallen the iconic Swedish retailer, which markets itself as an ethical, environmentally responsible company. The allegations first came to light in early 2012, when the French magazine Le Canard Enchainé published what it said were emails between Ikea France executives and a private security company. According to the emails, Ikea had sought background checks on as many as 200 people, for which it paid €80 per request.
In February, Ikea recalled its signature Swedish meatballs from its food markets and store cafeterias after some were found to contain traces of horse meat in part of a European-wide food scandal that also touched several other multinational companies.
And on Thursday, Ikea drew criticism from human rights groups after it admitted removing an article about a lesbian couple from the Russian version of a magazine it publishes for customers, for fear of running afoul of that country’s controversial laws against “propaganda for nontraditional sexual relationships.”
The spying allegations first came to light in early 2012, when the French magazine Le Canard Enchainé published what it said were emails between Ikea France executives and a private security company. The messages indicated that Ikea had sought background checks on as many as 200 individuals, for which it paid 80 euros per request.
The emails also indicated that a private security company, Sûreté International, had access to the computer databases of the national police, which contain the personal information of millions of French residents.The emails also indicated that a private security company, Sûreté International, had access to the computer databases of the national police, which contain the personal information of millions of French residents.
In a statement, the company acknowledged that an internal investigation, conducted after the media revelations last year, had uncovered “regrettable practices, contrary to our values and ethics standards.” That inquiry resulted in the dismissal in May 2012 of four directors of the French unit, including the head of risk management, and an overhaul of the company’s code of conduct. In a statement, Ikea acknowledged that an internal investigation, conducted after the media revelations last year, had uncovered “regrettable practices, contrary to our values and ethics standards.” That inquiry resulted in the dismissal in May 2012 of four directors of the French unit, including the head of risk management, and an overhaul of the company’s code of conduct.
The people said to be the targets of the snooping included store employees, union leaders and job applicants and dated back as far as 2008, according to French news media reports. The surveillance was also said to involve stores in at least nine French locations, including Avignon, Grenoble, Reims and Tours. The people said to be the targets of spying included store employees, union leaders and job applicants, and dated back as far as 2008, according to French news media reports. The surveillance was also said to involve stores in at least nine locations in France, including Avignon, Grenoble, Reims and Tours.
At least one labor union, Force Ouvrière, is suing the company for “fraudulent use” of its members’ personal data.At least one labor union, Force Ouvrière, is suing the company for “fraudulent use” of its members’ personal data.
“Here you have this innocuous company that sells home furnishings to students, accused of spying on its employees and its customers,” said Christopher Mesnooh, a partner in international business law at Field Fisher Waterhouse in Paris. “This is a first-rate example of how protecting one’s identity and privacy is getting harder and harder to do, as technology gets ever more sophisticated, even in Europe, where privacy has been elevated to almost a sacrosanct principle.” “Here you have this innocuous company that sells home furnishings to students, accused of spying on its employees and its customers,” said Christopher Mesnooh, a partner in international business law at Field Fisher Waterhouse in Paris.
Mr. Gublin, the lawyer for Mr. Vanoverbeke, who became chief executive of Ikea France in 2010, said his client “contests the allegations and is totally unfazed” by the investigation. “He has always condemned such practices, of which he was unaware” until the news reports emerged last year, Mr. Gublin said. “This is a first-rate example of how protecting one’s identity and privacy is getting harder and harder to do, as technology gets ever more sophisticated, even in Europe, where privacy has been elevated to almost a sacrosanct principle.”
According to Le Canard Enchainé, Ikea France’s dealings with the security company, Sûreté International, began in 2003, when it was asked to vet “suspicious” employees. The company’s chief executive at the time was Mr. Baillot. Mr. Gublin, the lawyer for Mr. Vanoverbeke, Ikea France’s chief executive since 2010, said his client “contests the allegations and is totally unfazed” by the investigation. “He has always condemned such practices, of which he was unaware” until news reports emerged last year, Mr. Gublin said.
Mr. Baillot left Ikea at the end of 2009, Ms. Gallimard said. She declined to comment on the circumstances of his departure.
Neither Mr. Baillot nor his legal representative could not be reached for comment. In an interview last year with the French newspaper La Tribune, Mr. Baillot acknowledged that under his watch, Ikea France was concerned about high rates of absenteeism and said that on one occasion he asked the company’s human resources department to determine the whereabouts of a manager on sick leave, who he suspected was in fact vacationing in Morocco.
“Just because I asked for one verification does not mean that I was behind the others,” Mr. Baillot said.
He also denied any direct knowledge of more widespread spying at Ikea: “I did not know that such information was in our possession,” Mr. Baillot said. “I was not the recipient of any such emails.”