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It is an explosive topic and a lot of money is involved: What compensation am I entitled to as a user or customer in the event of data leaks from corporations? German courts have recently made inconsistent decisions. The Federal Court of Justice has now issued a key ruling on the data leak on Facebook in April 2021 (6 million affected in Germany alone):
Facebook users can generally claim damages from the company. In the event of a mere loss of control, 100 euros in damages could be appropriate. Even if consumer lawyers celebrate, there are still cost risks for plaintiffs.
What is it about?
The lawyer Christian Solmecke (over one million followers on YouTube) went to the Federal Court of Justice for a mandate. The presiding BGH judge clearly stated in his oral assessment that he sees damage in Facebook’s loss of control over the data. This damage must of course also be compensated. In this specific case, Solmecke’s client demands 1,000 euros. However, this sum is likely to be too high, according to the BGH in a recent note. In the event of a mere loss of control, 100 euros could be appropriate.
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Solmecke was already cheering in one Youtube: The chances of receiving compensation have increased significantly. However, the law influencer had been courting clients for months with damages of 1,000 euros. Finally he said: “It could be 50 euros, 250 or even 5000 euros.” Now the 100 euros seems rather measly.
Those affected can do this
Several legal tech companies and law firms have pounced on the data leak and are aggressively advertising for mandates. Thomas Bindl, founder of the legal service provider Eugd (refers cases to lawyers), sees the landmark ruling as ambivalent. From his perspective, consumers have these options:
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1. Enforcement on your own: Will probably continue to be difficult.
2. Hiring a lawyer at your own expense: The cost risk will probably remain in the 4-digit range, but the probability is significantly higher that you won’t be stuck with it.
3. Hiring a lawyer with legal protection insurance: Insurance companies will find it difficult to reject these cases in the future, as the verdict should make it clear that there is compensation for all data leaks. Bindl: “Here you may only have to pay the deductible in advance, but that depends on the lawyers.”
4. Using a legal service provider, but you have to pay a 25 percent commission.
5. Sale of the claim to a legal service provider, whereby 10 to 40 euros were usually paid.
Bindl: “We expect a compensation amount of 200 to 500 euros per case.”
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Be proportionate to the impact of the data breach on the individual, taking into account factors such as emotional distress and potential long-term effects on their privacy.
World-today-news.com: Hello, thank you for joining us today. Could you please introduce yourselves and provide your perspective on the recent Federal Court of Justice ruling on data leaks from corporations and the compensation customers or users are entitled to?
Guest 1: My name is [Christian Solmecke], and I’m a lawyer representing clients in data privacy cases. As a lawyer who has been advocating for increased compensation for data privacy breaches, I welcome the recent ruling from the Federal Court of Justice that Facebook users are entitled to compensation for loss of control over their personal data. This is an important step towards holding corporations accountable for their handling of user data.
Guest 2: Hello, my name is [Thomas Bindl], and I’m the founder of a legal service provider called Eugd. While I agree that the ruling is a positive step forward, I believe it may be difficult for individual users to pursue their right to compensation due to the complexity of the legal process. We should also consider the potential cost implications for both users and corporations in these cases.
world-today-news.com: The Federal Court of Justice has ruled that customers can claim damages from Facebook for a loss of control over their personal data. However, the court also noted that the specific sum of 1,0000 euros demanded by Mr. Solmecke’s client was likely to be too high. What are your thoughts on this, and how much compensation do you think users should be entitled to in this situation?
Guest 1: I agree that the exact amount of compensation is difficult to determine, but I believe it should reflect the severity of the breach and the potential harm caused to the individual. One hundred euros may not seem like much, but it is a starting point. In other cases, such as a major data breach that leads to financial loss, more substantial compensation might be warranted. The key is to ensure that users are adequately compensated for the harm caused by these kinds of incidents.
Guest 2: Regarding the specific amount, I think the court’s suggestion of 100 euros for a mere loss of control is reasonable. However, as Mr. Solmecke mentioned, it’s just a starting point. Ultimately, the amount of compensation should
