The risks for companies of civil law claims due to data protection violations have been underestimated. Data disputes are increasing and the risks are potentially significant.
In this briefing, we examine the main defenses against such claims and the arguments that – in the light of emerging case law – are available to challenge the high amounts claimed by data subjects for damages.
A significant number of data claims were filed in English courts in 2020. Following British Airways’ announcement in 2018 that a breach of its security systems resulted in more than 500,000 customer data being leaked, applicants have filed claims that could be valued at up to £ 3 billion.
The £ 20 million ICO criminal complaint filed this month is comparatively small. In Lloyd v Google LLC [2019] EWCA Civ 1599, a representative action on behalf of an estimated 4.4 million people (£ 750 per person). Google’s potential liability is £ 3.3 billion at no cost. And after a data breach involving Starwood Hotels’ guest reservation database resulted in the loss of data for 300 million people, a lawsuit was initiated against Marriott International that could cost £ 1.7 billion.
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