The recent hack of the Ashley Madison website and the subsequent
release of personal information is already the subject of multiple
class actions. The risks associated with information technology are
not new. Any company which holds personal information or relies on
a computer network is potentially susceptible to cyber-liability
through hacks, network interruptions, programming errors, data
theft, and other cyber-risks. However, the exposure from a privacy
law class action is relatively novel and companies should take care
to examine their insurance policies and ensure there is no gap in
coverage.
In Ontario, class actions like those based on the Ashley Madison
hack arise out of the new and evolving area of privacy law.
Invasion of privacy was first recognised as a distinct cause of
action by the Ontario Court of Appeal in Jones v. Tsige, 2012 ONCA 32.
