Privacy violations by tech companies
The General Data Protection Regulation (AVG) places strict requirements on the collection and use of personal data. Yet there are many tech companies that do not fully comply. Tech companies use personal data, such as consumers' Internet behavior, to tailor their ads to individual website visitors. A website visitor may suffer harm as a result. This damage is often intangible, or not directly expressible in money. The website visitor may have an "unsafe feeling" or fear that his data may end up in the hands of the wrong party.
What is a mass claim?
In the Netherlands, consumers can come together to go to court through an interest organization to claim damages. Often the interest organization has an outside money provider to pay for the proceedings in court. In return, the organization receives a portion of the proceeds if the case leads to a win. A requirement for filing a so-called "mass claim" is that the consumers' interests are similar.[1]
The mass claim against TikTok
A mass claim seemed a good solution for consumers who felt they had been harmed by TikTok's handling of their privacy. TikTok allegedly violated privacy laws by going too far in collecting personal data.
Consumers turned to interest groups, which in turn went to court to claim the damages. However, the Amsterdam court ruled that a mass claim was not the right way to get compensation for the intangible damages.
Amsterdam court rejected mass claim
On Oct. 25, 2023, the Amsterdam District Court set high standards for damages that large groups of consumers can claim. In this case, three interest groups went to court to claim €9.5 billion in damages for groups of consumers together. Per consumer, the damages involved were €1000 to €2000, mainly intangible.
More evidence
Two of the three advocacy organizations must provide further evidence to show that they are the proper body to represent consumers before the court can rule on their claim. [3]
Claims not comparable enough
With respect to the third interest organization, the court ruled, for the first time in the Netherlands, that consumers could not file a mass claim to recover their immaterial damages. The reason is that the claims of the individual consumers are not similar enough because the interest organization is claiming immaterial damages. The damages depend on the experience TikTok offers consumers, which varies by age. Also, everyone uses TikTok differently, making the amount of damages different for each person.
So a mass claim against TikTok is, probably, a hopeless story. TikTok was able to flout privacy regulations, making many users feel unsafe, without having to pay damages.
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[1] Article 305a (1) BW.
[2] Article 305a(2)(c) BW.
