Publication
Financial services monthly wrap-up: October 2024
In October 2024, the Australian Securities and Investments Commission (ASIC) was successful in its action against a life insurer in relation to misleading statements.
Global | Publication | October 2021
The right to bring a private action under section 32(1) of the Singapore’s Personal Data Protection Act 2012 (PDPA)1 was recently considered by the Singapore High Court (the Singapore High Court) in Bellingham, Alex v. Reed, Michael [2021] SGHC 125 (Bellingham v Reed), where it was held that emotional harm and mere loss of control over personal data was insufficient to constitute “loss or damage” required to sustain the right of private action.
On the other hand, the Hong Kong District Court arrived at an opposite conclusion on a similar issue in Tsang Po Mann v Tsang Ka Kit and Another [2021] HKCU 665 (Tsang Po Mann v Tsang Ka Kit) and awarded HK$70,000 to the plaintiff for injury to her feelings for the defendants’ misuse of the footages captured by their CCTV cameras under section 66 of the Personal Data (Privacy) Ordinance (Cap. 486) (the PDPO).
This article will compare and contrast these two cases and provide some key observations and takeaways.
Bellingham v Reed concerned an appeal by Mr. Alex Bellingham against an injunction obtained against him by his former employers (the Former Employers) and the data subject, Mr. Michael Reed. Mr. Reed was a customer of the Former Employers.
The relevant facts are as follows:
While the orders were granted to Mr Reed at first instance, they were refused in respect of the Former Employers’ applications on the ground that section 32 of the PDPA does not give a right to action to parties other than the data subject whose personal data was impacted. Mr. Bellingham appealed against the orders made against him in favour of Mr. Reed.
Section 32(1) of the PDPA provides that “any person who suffers loss or damage directly as a result of contravention of any provision in Part IV, V or VI by an organisation shall have a right for relief in civil proceedings”.2
Section 32(3) of the PDPA further provides that the court may grant relief to the plaintiff under section 32(1) of the PDPA in the form of: (a) relief by way of injunction or declaration; (b) damages; and/or (c) any other relief as the court thinks fit.
Under the PDPA, the collection, use or disclosure of personal data that is publicly available does not require consent of the individual: section 17(1) of the PDPA read with the paragraph 1(c) of the Second Schedule, paragraph 1(c) of the Third Schedule and paragraph 1(c) of the Fourth Schedule to the PDPA, which provides (the Publicly Available Personal Data Exception).
Mr. Bellingham sought to rely on the Publicly Available Personal Data Exception and claimed that Mr. Reed’s email address was obtained from Mr. Reed’s LinkedIn account, which was a public source.
While the Singapore High Court accepted Mr. Bellingham’s explanation that he obtained Mr. Reed’s personal email address from a public source, it noted that Mr. Bellingham had conceded that he would not have been able to find Mr. Reed’s personal email address without the use of Mr. Reed’s name, which was personal data that he obtained in the course of his work with the Former Employers. As such, Mr. Bellingham was not entitled to use or disclose such personal data without Mr. Reed’s consent.
In this regard, the Singapore High Court observed that where personal data that is publicly available is obtained only through unlawful use of other personal data, section 17(1) of the PDPA cannot apply and personal data so obtained cannot be collected, used or disclosed without consent. Accordingly, the Singapore High Court held that Mr. Bellingham was not entitled to collect, use or disclose Mr. Reed’s email address without consent.
In deciding whether to allow Mr. Reed’s appeal, the Singapore High Court considered whether the term “loss or damage” should be interpreted narrowly to refer to the heads of loss under common law (i.e., pecuniary loss, damage to property, personal injury including psychiatric illness) or more widely to include distress and loss of control over personal data.
The Singapore High Court held that the narrower interpretation of “loss or damage” prevailed because:
Accordingly, the Singapore High Court held that as emotional distress and loss of control over personal data did not constitute “loss or damage” within the meaning of section 32(1) of the PDPA, Mr. Reed failed to show that he had suffered “loss or damage” so as to give rise to the right to private action under the provision.10
Mr. Reed appealed against the decision of the Singapore High Court. His application for leave to appeal was granted and the appeal will be heard in by the Singapore Court of Appeal in due course.
In Tsang Po Mann v Tsang Ka Kit, the plaintiff, Madam Tsang, brought an action against the defendants, being her uncle Mr. Tsang and her aunt Madam So. The background of the claim is as follows:
Madam Tsang brought an action against the defendant for defamation and breach of section 66 of the PDPO. The Hong Kong District Court rejected Madam Tsang’s defamation claim. However, she succeeded in her claim under the PDPO for compensation for injury to her feelings for the defendants’ misuse of the CCTV footages.
Section 66(1) of the PDPO provides that “an individual who suffers damage by reason of a contravention:
(a) of a requirement under [the PDPO];
(b) by a data user; and
(c) which relates, whether in whole or in part, to personal data of which that individual is the data subject,
shall be entitled to compensation from that data user for that damage.”
Section 66(2) of PDPO makes it clear that for the avoidance of doubt, the damage referred to in subsection (1) may be or may include injury to feelings.
Section 2 of the PDPO defines a data user as “a person who, either alone or jointly or in common with other persons, controls the collection, holding, processing or use of the data”.
The Hong Kong District Court held that since the CCTV cameras were installed for the security of the defendants’ matrimonial home and hence for the use of their family, and both Mr. Tsang and Madam So had equal access to the CCTV footages and they could process and use any personal data contained in them, both of them are data users within the meaning of the PDPO11.
In reaching the conclusion that there was a contravention of the PDPO by the data users, the Hong Kong District Court considered the following provisions:
The Hong Kong District Court held that the publication of the CCTV footages of Madam Tsang in the letter constituted a use of the personal data collected for a new purpose12. Without the consent of Madam Tsang, the defendants contravened Principle 3(1)13.
In Madam Tsang’s witness statement, she stated that upon discovery of the letter, she had been unable to sleep well and felt paranoid and feared that she would be watched and filmed all the time14. She had to seek medical assistance and was prescribed sleeping pills15.
The Hong Kong District Court held that Madam Tsang could not have expected that the defendants would make pictures out of the CCTV footages and use them to her detriment and recognised that her feelings must have been hurt as a result of the misuse of the personal data collected by the defendants in the CCTV footages16. Having considered the gravity of the injury to her feelings and the manner in which the CCTV footages were misused, the Hong Kong District Court assessed that the appropriate amount of compensation was HK$70,00017.
The Singapore High Court’s clarification of the right to private action under section 32(1) of the PDPA in Bellingham v Reed is welcome. At the same time, it is a useful reminder to organisations to be careful about how they use personal data of individuals for marketing and business development, and the need for organisations to comply with the PDPA.
Tsang Po Mann v Tsang Ka Kit makes it clear that the use of personal data collected by CCTV cameras must be in compliance with the PDPO.
The reasons why the two courts have reached opposite decisions can be explained by the different approach taken by the legislative bodies in the two cities.
As Reed v Bellingham is currently being appealed, the position on the right to private action in Singapore under the PDPA may further develop.
Update of 20 September 2022: The decision of the Singapore High Court in Bellingham v Reed discussed in this article has been reversed by the Singapore Court of Appeal in its judgment of 9 September 2022. Access our commentary on the Singapore Court of Appeal’s judgment here.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023