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Cyberterrorism

M&S Faces Compensation Claims Over Customer Data Breach

Strategic Insights

— 1 min read

Data stolen from the retailer includes contact details, date of birth, and online order history, but not payment or card details. M&S has admitted that hackers accessed the data, but there is no evidence it has been shared. Customers of the retailer's loyalty app, with 18 million members, will be required to reset their passwords as a result of the breach. Anyone logging into the retailer's website will also have to reset their password.

Key Takeaways:

  • M&S's data breach could lead to compensation claims of hundreds of millions of pounds, as customers may claim for the "notional price of allowing your data to be used".
  • The retailer's loyalty app has 18 million members, who will be required to reset their passwords due to the breach.
  • Customers may be targeted through social media ads promising hundreds of pounds in compensation.
  • M&S may offer voluntary compensation to avoid a class action lawsuit.
  • The retailer could be pursued over "loss of control damages" or any direct loss where someone's data is used by hackers.

Statistics:

  • 18 million members of M&S's loyalty app require password reset due to the breach.
  • 16,000 claimants joined a class action against British Airways (BA) over a 2018 data breach, which the company settled confidentially in 2021.
  • 400,000 customers were affected by the BA data breach.
  • 2% fine of annual turnover is the maximum fine that the Information Commissioner's Office (ICO) can impose in the preceding financial year.
  • M&S could face a fine of around £260m if the ICO imposes the maximum fine.

Sources:

  • Steve Farrell, "M&S faces compensation claims over customer data breach", [no publication date given]
  • Luke Harrison, partner at Keidan Harrison, [no publication date given]
  • Benjamin Ross, Global Head of Privacy at Bortstein Legal Group, [no publication date given]
  • Melanie Hart, partner at KingsleyNapley, [no publication date given]
  • Charlotte Wilson, Head of Enterprise at Check Point Software, [no publication date given]

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