Online box office EZding liable for data theft and consequential damages

guest · Nov 16, 2019

Online box office liable for data theft and consequential damages
November 15, 2019
https://www.lexology.com/library/detail.aspx?g=25c97a14-695d-4c6d-a42b-43617d8c743d

In September 2019 a landmark appeal court decision found an online information service provider liable for consequential damages of data theft.
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In April 2017 subscribers and users of one of Taiwan's most popular box office websites, EZding, reported numerous data theft incidents. EZding rejected the complaints about its security management, insisting that it regularly performed vulnerability scanning and, as a result, had received a Trustwave compliance certificate for its data security.
EZding denied liability for all of the plaintiff's claims.

The plaintiff and EZding appealed.
Basing its decision on the same evidence, the appeal court considered the plaintiff's property loss to be irrefutable, as the scammers had obtained highly detailed subscriber information to solicit her trust (eg, recent transaction records).

EZding failed to convince the court that all of its databases had been adequately protected at the time of the incident. Therefore, the appeal court upheld the plaintiff's claim of consequential damages.
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Online box office EZding liable for data theft and consequential damages

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