Data Protection - an update

The purpose of data protection law is to protect private information. The protection provided has just been increased by the Court of Appeal in Vidal-Hall v Google (27 03 2015)
 
Landmark judgment
The Court of Appeal found that individuals can claim compensation for distress suffered as a result of data protection breaches. It had previously been thought that compensation was only available if the individual had suffered some sort of financial loss, ie they could not claim money for distress alone. This is good news for individuals but potentially very bad news for employers
 
The case itself is complex but fascinating. It is alleged that Google were able to bypass the privacy settings on the Apple Safari web browser, so as to place tracking cookies on individuals' computers.
Several individuals affected by this sought compensation for the anxiety and distress they had suffered. The Court of Appeal took a robust approach and said that compensation was indeed payable for distress caused without having to show financial loss

Employers must protect the personal data which they have been entrusted with and failing to do so will often be a breach of the Data Protection Act
 
Implications for employers
The consequences previously had been the breach of trust, the reputational damage to the employer, and in the most serious cases, a fine of up to £500,000.
In light of the Vidal-Hall judgement, employers are now also exposed to the risk of further financial loss through the prospect of having to pay compensation to individuals who have suffered distress following a data protection breach.
 
Best practice
We anticipate that there may now be a surge in employees arguing that their data protection rights have been breached so as to try and claim compensation for any distress caused. Furthermore, employees often allege data protection breaches as part of a wider grievance and we may therefore see an increase in employees claiming compensation under the Data Protection Act alongside employment law related claims.
As such, it is more important than ever for employers to ensure that they comply with data protection law and to ensure that employees' information is kept secure