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BrewDog founder faces data privacy complaints over shareholder emails

Created at 17 Jul · 6:06 AM1 source↑ Market-relevant
IN SHORT

BrewDog founder James Watt is facing complaints to the UK's data privacy watchdog over emails sent to "equity punks" regarding his bid to buy back the company. Recipients questioned how Watt obtained their contact details, raising GDPR concerns.

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Key Numbers

£33msale price of BrewDog assets to Tilray
200,000number of crowdfunding investors whose shares became worthless
43,000investors supporting Watt's new venture

Who's Involved

James Watt
BrewDog founder facing data privacy complaints
Tilray
US firm that acquired BrewDog's brand and assets
Information Commissioner's Office (ICO)
UK's data privacy watchdog considering complaints
Marc Knox
Former BrewDog shareholder raising concerns
Ravi Naik
Legal director at data protection specialist AWO

↳ Why This Matters

The case highlights potential data privacy violations and raises questions about corporate governance and the handling of personal information, particularly in the context of a founder's attempt to reacquire a company after its sale.

Key facts

  • BrewDog founder James Watt is facing complaints to the UK's Information Commissioner's Office (ICO).
  • The complaints relate to emails sent by Watt to former BrewDog shareholders regarding his bid to buy back the company.
  • Recipients questioned how Watt obtained their contact details, raising concerns about potential GDPR breaches.
  • Watt stated the communication was sent using lawfully obtained data and followed legal advice.
  • Tilray, the current owner of BrewDog's brand and assets, stated it did not acquire shareholder data and has no involvement in Watt's activities.

James Watt, the founder of BrewDog, is under scrutiny from the UK's data privacy regulator, the Information Commissioner's Office (ICO), following complaints from former shareholders. The complaints stem from emails Watt sent to "equity punks" as part of his surprise bid to buy back the beer company, which was sold to US firm Tilray in March for £33 million. Many recipients expressed confusion and concern over how Watt obtained their contact details, suspecting a breach of General Data Protection Regulation (GDPR) rules.

Watt has denied any wrongdoing, asserting that the communication was sent to fellow shareholders using lawfully obtained data and in connection with their legitimate interests. He did not elaborate on the source of the contact details. Several former shareholders have lodged complaints with the ICO, which is now reviewing the matter and has the power to impose fines if a GDPR breach is found.

Tilray, the current owner of BrewDog's brand, intellectual property, UK breweries, and 11 bars, has stated that it did not acquire the "Equity for Punks" shareholder data and has no affiliation with or responsibility for Watt's current business activities, including his venture called Second Best. A spokesperson for Tilray emphasized their commitment to data privacy and confirmed that no data held by Tilray Brands had been shared with external entities or former directors.

Legal experts have noted that while it is not yet clear if privacy laws were breached, the case raises significant questions about how the recipients were selected and whether the email campaign complied with regulations. Marc Knox, a former equity punk, echoed the sentiments of many, stating he was prompted to complain after seeing numerous others express similar concerns online.

Frequently asked questions

BrewDog's brand, intellectual property, UK breweries, and 11 bars were sold to US firm Tilray in March for £33 million. The remaining assets are in administration.

The 'equity punks' are the more than 200,000 crowdfunding investors who previously held shares in BrewDog.

James Watt has launched a new venture called Second Best, through which he is attempting to buy back control of BrewDog and offer former shareholders a stake.

GDPR stands for General Data Protection Regulation, a strict set of rules in the UK and EU governing how organisations collect, store, and process personal data.

What Happens Next

01The ICO will continue to consider the complaints against James Watt.
02The ICO may decide to take action if a GDPR breach is found.

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Cadence

How It Developed

BrewDog founder James Watt announced a plan to regain control of the company.
Watt contacted thousands of shareholders offering them a stake in his new venture, Second Best.
Several shareholders who received the email questioned how their contact details were obtained.
Complaints were filed with the UK's Information Commissioner's Office (ICO) over potential GDPR breaches.
Watt stated the communication was sent using lawfully obtained data and followed legal advice.
The ICO is considering the complaints regarding potential data privacy violations.

Sources

T1
‘How’s this joker got my details?’: BrewDog founder faces complaints over emails to ‘equity punks’The Guardian

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