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Can You Sue A Company For A Data Breach And How Much Compensation Could You Receive?

By Stephen Hudson. Last Updated 19th December 2024. If you’re wondering ‘Can you sue a company for a data breach?’, this guide aims to help you. Personal data is a valuable asset for businesses. Many organisations require personal information to provide a service. A failure to protect such personal data can have serious consequences.

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Personal data that has been breached due to security failures or poor data protection processes can have devastating consequences for the individual affected. Cybercrime and human error are among the main causes of data breaches today.

Therefore, if you have suffered financial loss or emotional distress due to a breach of your personal information, you may be eligible to make a claim. Operating on a No Win No Fee basis, our solicitors could support you. To see if you can be connected, contact our advisors today. Call 0800 073 8804 or raise your claim online.

Our advisors are available 24/7 and give free legal advice.

Here’s our quick explainer video on how you can claim compensation:

Select A Section

  1. Can You Sue A Company For A Data Breach?
  2. How Could A Data Breach Impact You?
  3. What Can You Do If You Think A Company Breached Your Data Protection?
  4. How Much Can You Sue A Company For A Data Breach For?
  5. No Win No Fee Data Breach Claims

Can You Sue A Company For A Data Breach?

Can you sue a company for a data breach? Yes. If certain criteria are met, you absolutely can sue a company for a breach of your personal data.

According to the Information Commissioner’s Office (ICO), the UK’s independent body for upholding information rights, a personal data breach occurs when personal data is accidentally or unlawfully altered, lost, or disclosed without authorisation, destroyed, or accessed. This definition, therefore, covers both human error and intentional data breaches.

Personal data is information that could identify who you are, such as your national insurance number or name.

There are 3 parties that need to be considered when discussing data breach claims, these are:

  • Data subjects: the living identifiable individuals to whom the personal data relates.
  • Data controllers: organisations who decide when, how and why your personal data is to be processed.
  • Data processors: external organisations who are contracted to process data on behalf of controllers. It is important to emphasise that not every controller will use external processing services and may choose to process data themselves.

Both data controllers and processors have legal obligations to protect personal data under the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. Failing to abide by these laws can result in security incidents where personal data is adversely affected. 

 The eligibility criteria to begin a data breach claim are as follows:

  1. A data controller or processor failed to uphold their obligations under data protection law.
  2. Their failure resulted in a data breach, in which your personal data was affected.
  3. The personal data breach resulted in you experiencing psychological distress, financial loss or both. 

To get a free assessment of your eligibility to claim, or to ask any questions you may have, contact our advisors today using the contact details provided above.

How Could A Data Breach Impact You?

If your personal data is involved in a data breach, then this could potentially have different types of harmful consequences:

  • Financial losses – If your personal data is exposed or lost due to a data breach, then this could lead to consequences that cause you to suffer financial losses. For instance, if your credit card information was compromised in a data breach, this could lead to unknown charges being made to that card which could also impact your credit score.
  • Psychological harm – The knowledge that your personal data has been breached and could potentially lead to issues such as financial losses or reputational damage can be incredibly stressful. Therefore, you could suffer from a variety of psychological injuries following a personal data breach, such as anxiety, depression or post-traumatic stress disorder (PTSD).

You may be asking, “Can you sue a company for a data breach?”. If you have suffered financial or mental harm due to a personal data breach that was caused by the organisation’s failings, then you may be able to make a personal data breach claim.

Contact our advisors for free today for more advice about starting a valid data breach claim.

Time Limits For Data Breach Claims

If you are suing for a data breach that compromised your personal data, you must also ensure that you start your claim within the correct time limit.

Generally, you will have 6 years to start a personal data breach claim. This time limit is reduced to one year if you are claiming against a public body.

To find out whether you are within the time limit to start a personal data breach claim, you can contact our team of advisors. They can also offer you free advice and answer any of the questions you may have. Furthermore, if they think you may have a strong case, they could connect you with one of our solicitors.

What Can You Do If You Think A Company Breached Your Data Protection?

The ICO states that an organisation’s duty under UK GDPR is to report certain personal data breaches within 72 hours of becoming aware. If a person’s rights and freedoms are likely to be adversely affected by a company data breach, they should also be notified as soon as possible.

However, if you suspect a breach, ask yourself these questions:

    • What is the company saying about the breach? The first step to take if you think your data has been compromised is to contact the organisation. They should be able to confirm whether or not a data breach has occurred and if your personal data has been affected. The ICO suggests that you give them one calendar month to reply.
    • Have I received a satisfactory response? If the answer to this is no, you can report a data breach to the ICO. They advise that you do this within three months of your last meaningful contact with the company, having asked for clarification if you weren’t satisfied with the initial response.
    • Can I sue a company for this data breach? The ICO can investigate and take action based on their findings, but they cannot help with a compensation claim. A specialist data breach solicitor can, however. To get dedicated legal guidance from a professional, you should find out whether they can take on your claim. For example, you could call our helpline for a free consultation.

Although we have answered the question, “Can you sue a company for a data breach?” you may want to know what compensation you could collect. See the next section of this guide for a close look at how UK GDPR data breach compensation works.

Call us today for guidance on data breach claims and how to sue a company if you have been affected.

How Much Can You Sue A Company For A Data Breach For?

Under the UK GDPR, it is possible to seek compensation for two types of damages. Material damage relates to your finances. Therefore, if you have suffered identity theft or your credit score has been affected by a data breach, you could be compensated.

Non-material damage relates to your mental wellbeing. Therefore, if you have suffered harm such as stress, anxiety or even post-traumatic stress disorder (PTSD) you could be compensated.

Compensation for material damages is variable and depends on the financial losses incurred by an individual. Compensation for non-material damages is also variable but depends on the severity of the emotional damage sustained by an individual.

The compensation table below shows examples of potential awards as outlined in the Judicial College Guidelines. Solicitors can use these examples as guidance when valuing injuries. Please note that the first entry in this table is an estimated figure and is not based on the Judicial College Guidelines.

Compensation Table

Please be advised that this table has been included to act as guidance only.

InjurySeverityPotential Compensation
Very Serious impact to mental health with significant financial lossesVery SeriousUp to £500,00 +
General Psychological DamageSevere (a)£66,920 to £141,240
Moderately Severe (b)£23,270 to £66,920
Moderate (c)£7,150 to £23,270
Less Severe (d)£1,880 to £7,150
Post-Traumatic Stress DisorderSevere (a)£73,050 to £122,850
Moderately Severe (b)£28,250 to £73,050
Moderate (c)£9,980 to £28,250
Less Severe (d)£4,820 to £9,980

If you’d like our advisors to value your claim for free, why not get in touch?

No Win No Fee Data Breach Claims

If you contact our advisors about your potential data breach claim, they could review your case and determine if it’s valid. If they find it is, then they could put you in touch with one of our solicitors.

Our No Win No Fee solicitors can support a company data breach claim under a Conditional Fee Agreement (CFA). When claiming under a CFA, you generally won’t have to pay your solicitor for their services before the claim starts or while it is being processed. You usually also won’t need to pay for their services if the claim fails.

If your claim is a successful one, then your solicitor takes a success fee to cover their payment. This means a small and legally capped percentage of your compensation will be subtracted by your solicitor.

Get in touch with our advisors for free today to ask questions such as “can you sue a company for a data breach?” or to learn more about No Win No Fee solicitors. You can contact them by:

A client asks a data breach solicitor, 'Can you sue a company for a data breach?'

References

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If you have any questions about claiming or want clarity on our answer to ‘Can you sue a company for a date breach?’, just get in touch.