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ARTICLE · 27 MARCH 2024

Algorithmic Scoring And The CJEU Decision On Shufa: Has The Pandora's Box Of Automated Individual Decisions Been Unleashed?

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On December 7, 2023, the Court of Justice of the European Union ("CJEU") issued a landmark ruling against the German credit scoring agency Schufa AG Holding ("SHUFA")...

CanadaPrivacy
Julie Uzan-Naulin
Julie Uzan-Naulin
Rémi Slama, LLM
Rémi Slama, LLM
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On December 7, 2023, the Court of Justice of the European Union ("CJEU") issued a landmark ruling against the German credit scoring agency Schufa AG Holding ("SHUFA"), in the framework of automated decision-making pursuant to Article 22 of the General Data Protection Regulation ("GDPR")1.

The SCHUFA decision2 not only enhances the rights of data subjects according to GDPR but also has the potential to influence service providers employing automated processes for generating risk-based scores or other outputs, particularly when such outputs play a pivotal role in decisions significantly affecting individuals. This decision is of interest in Quebec regarding the similar obligation provided by new section 12.1 of the Quebec Act respecting the protection of personal information in the private sector, as amended by the Act to modernize legislative provisions as regards the protection of personal information (together, "Quebec Private Sector Act").

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