Trade Republic has caused dissatisfaction among its users with an app update. The general tenor: a “misleading” design, a lack of information and a lack of ability to take criticism. But the neobroker has gone one better. Sharing usage data is preset in the new Trade Republic app. A comment.
“It couldn’t get any worse”? Puppy cake! Because Trade Republic is currently impressively demonstrating how a company can dismantle itself. The neobroker has increased its interest rates and started bond trading, but at the same time it also presented a new app. And it is currently being heavily criticized!
Trade Republic: Strong criticism for new app
For example, many users miss important information such as an overview of the prices of individual positions. Others even criticize the new design of the Trade Republic app as “misleading”. When it comes to crisis communication and dealing with criticism, the neobroker doesn’t present a good picture either.
Because the company simply labels over 1,000 negative Instagram comments as “isolated cases”. In response to constructive criticism, the neobroker in turn asks for constructive criticism. Against this background, the claim that the new app is based primarily on user feedback is at least questionable.
“Share usage data” enabled by default
But it gets worse. Because with the release of its new app, Trade Republic has the button at “Share usage data“ in the settings under “Security & Privacy“ automatically activated as a default setting. It is unclear whether this applies to all users.
However, we are now aware of numerous cases that confirm that consent was not obtained to share usage data. The company also did not actively communicate this change. It is extremely questionable whether this approach is in line with the General Data Protection Regulation (GDPR).
Does Trade Republic violate GDPR?
For example, Article 25 (paragraph 2) on “data protection by design” states: “Such measures must in particular ensure that personal data are not made accessible to an indefinite number of natural persons through defaults without the individual’s intervention.”
According to GDPR Articles 5 and 6, active consent is usually required for the collection of data that is not technically absolutely necessary. Specifically, this means that standard activation is not legal in many cases.
However, it is not entirely clear whether and to what extent this applies to Trade Republic. Even the neobroker’s data protection declaration does not make it clear what data is collected in this context and how it is processed.
Admittedly, the GDPR is sometimes confusing and occasionally a matter of interpretation; There are also individual cases that fall through the cracks. But whether data protection compliant or not: Trade Republic’s actions are just an absolute disgrace!