Kristen Zanoni  |  August 19, 2020

Category: Legal News

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Oracle company sign on glass building

Class action lawsuits have been launched against Oracle and Salesforce for the companies’ alleged use of users’ personal data in violation of the General Data Protection Regulation (GDPR).

Class action lawsuits in the U.K. and the Netherlands allege Oracle and Salesforce have violated the GDPR by collecting and auctioning users’ personal information without their consent.

The companies’ alleged GDPR violations involve their use of third-party cookies to exploit users’ personal data by selling targeted online ads, according to Tech Crunch. 

The class action lawsuits against Oracle and Salesforce have been initiated by The Privacy Collective, a nonprofit organisation. The nonprofit’s mission centres on businesses’ use of tracking cookies used for targeted advertising.

The Netherlands class action lawsuit over the GDPR violations was filed in the District Court of Amsterdam by bureau Brandeis. The Privacy Collective’s class action lawsuit is representing all Dutch users who have had their personal information collected and auctioned off without their consent. 

There could be some difficulties faced by the plaintiffs in the U.K., considering there is not a standard model for seeking collective damages for data rights’ violations, but that is quickly changing, according to Tech Crunch.

The GDPR allows individuals to take private legal action and can support third parties bringing claims for redress on individuals’ behalf.

The U.K. class action lawsuit against Oracle and Salesforce is being funded by litigation funder Innsworth.

According to the claims of the plaintiffs in the class action lawsuits, Oracle and Salesforce surveilling their users by tracking personal information and selling the information to advertisers breaches GDPR, Forbes reported.

The plaintiffs believe the damages could be more than €10 billion if the Court rules in their favour. 

Many companies use tracking cookies.

Oracle and Salesforce allegedly used third-party cookies BlueKai and Krux to record and gather personal data including locations, finances, relationship status, gender, age, interests and more, according to Tech Radar.

Salesforce sign on building - OracleThese tracking cookies are hosted on major websites such as Amazon, Reddit, Spotify and others.

The accumulated personal data is used to build a user profile without their knowledge, then the profiles are used to make custom ads to target specific individuals based on their data.

The users’ personal information is collected by Oracle and Salesforce and it is sold to advertisers. 

The class action lawsuit alleges that the accumulation of users’ personal data by Oracle and Salesforce is being accomplished without authorisation and therefore is a GDPR violation, according to Computer Weekly.

The claims of the class action lawsuit say Oracle and Salesforce’s engagement in real-time auctioning of personal data to advertisers means it is virtually impossible to get the consent that would be necessary in order to comply with the law.

GDPR is a set of information protection rules, according to Wired. The class action lawsuit claims that Oracle and Salesforce breached this set of rules.

The rules set limits on what organisations can do with personal information. Personal data includes obvious information such as names or locations, but it also more obscure information such as IP addresses.

Under GDPR rules, consent from EU citizens is required when using their personal data. GDPR violations also include users not receiving a copy of their personal information if they want to request it.

The class action lawsuit will focus on these specific conditions of the alleged GDPR violations of Oracle and Salesforce.

Class Member Rebecca Rumbul gave her thoughts about the GDPR violations and the class action lawsuit against Oracle and Salesforce, telling Tech Radar she believes all internet users are at risk.

“Everyone who has ever used the internet is at risk from this technology,” she said. “It may be largely hidden, but it is far from harmless. If data collected from internet use is not adequately controlled, it can be used to facilitate highly targeted marketing that may expose vulnerable minors to unsuitable content, fuel unhealthy habits such as online gambling or prey on other addictions. By supporting my action, internet users in England and Wales can do their bit to begin to hold these firms to account and make the internet a safer and more regulated place.”

Do you worry about privacy violations when it comes to tracking cookies and targeted advertising? Let us know in the comments.

Check back daily for the most recent U.K. class action lawsuit and consumer protection news.

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