IKEA Fined €1 Million for Spying on French Employees, Customers

A French court has fined IKEA, the world's largest furniture retailer, one million euros ($1.21 million) after it was found guilty of spying on its employees and some customers and illegally collecting and storing data.

The Swedish company's French branch has been accused of snooping on its workers over several years, violating their privacy by reviewing their bank account records, and sometimes using "fake employees" to write reports against the company's real employees.

Prosecutors were seeking a fine of two million euros against the Swedish firm.

In a statement, the company said it is reviewing the court's decision, to see if any further measures are needed after it has taken steps to eliminate surveillance tactics. "IKEA has strongly condemned these practices, apologized, and implemented a major action plan to prevent this from happening again."

The company's former chief executive in France, Jean-Louis Bailot, was convicted in the same case and handed a two-year suspended prison sentence and a fine of 50,000 euros.

The allegations centered on the period between 2009 and 2012, although prosecutors said the "espionage operations began in the early 2000s."

IKEA has also been accused of spying on some customers, while several managers have been fired and the company overhauled its internal policy after the allegations surfaced in 2012.

The group has been accused of searching employee data to examine their finances and personal lives, admitting some of these practices, but denying setting up a "large-scale espionage system".