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Court: Compensation Only If Damages Are Due To Breach of DPA

PRIVACY LAW—UK

May 22, 2013

The England and Wales Court of Appeal recently ruled that businesses “do not have to pay compensation for causing distress to consumers if they break data protection laws unless the distress suffered by consumers is linked to the breach itself,” reports Out-law.com. The ruling stemmed from a customer’s complaint that upon receiving damages from a breach case, the finance company involved placed his settlement in a closed account and entered incorrect information about him in their systems indicating his account was in arrears—which was shared with a credit scoring agency. The customer claimed the company had breached the terms of the district court order and asked the court for further damages, prompting the court’s ruling.
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