The Court of Appeal have allowed the appeal of Lloyd v Google exciting many lawyers in the sector.
The decision has a major impact on class action cases but the Court also clarified the position with respect to claiming compensation for damages after a data breach has occurred.
A victim of a data protection breach had to prove that the breach had caused financial loss and / or distress. The Court of Appeal decision effectively changes this position and allows the victim to claim compensation for damages without the need to prove a financial loss or distress. This means that if an organisation breaches data protection laws, the loss of control of an individual’s data is itself enough for which compensation can be claimed.
The risk of exposure, for businesses who do not properly protect customers’ data, is now huge.
However, the story does not end here. Google have already stated their intent to appeal to the Supreme Court. Watch this space…