A WATCHDOG is looking into complaints that BrewDog co-founder James Watt broke data privacy laws after he contacted thousands of former investors in the Scottish beer firm.
On Wednesday, Watt, originally from Fraserburgh, revealed he had tabled an offer to buy back BrewDog from the US company Tilray through his new beer firm Second Best, claiming that 43,000 so-called equity punk investors have backed his bid.
The New York-based Tilray bought the embattled BrewDog in March, which brought the company out of administration, but resulted in the closure of 36 bars in the UK, with almost 500 workers losing their jobs.
Watts's plans to buy back the Ellon-based drinks firm involved him contacting thousands of shareholders to offer them the “exact same stake in Second Best that you once held in BrewDog, for free”.
However, several former shareholders who received an email from Watt have been left confused as to how he managed to obtain their contact details and it has since led to concerns over a breach of the General Data Protection Regulation (GDPR), according to The Guardian.
There are strict rules in place on how organisations can collect, store and process personal data, with serious breaches leading to substantial fines.
Watt has denied any wrongdoing, telling the paper: “A communication was sent to my fellow shareholders in BrewDog following legal advice, using lawfully obtained data, and in connection with their legitimate interests as shareholders.”
However, the former BrewDog boss did not explain how contact details of shareholders were obtained.
One former equity punk shareholder, Marc Knox, reportedly said he had raised his concerns about how his personal information was obtained in a letter to Second Best.
He said: “I got the email last Sunday and I kind of laughed. I wasn’t thinking about complaining but I talked to a friend, looked online and saw there were lots of people saying the same thing: ‘How has this joker got my details?’”
Several former BrewDog shareholders who received an email from Watt about his plans have since reported him to the Information Commissioner’s Office (ICO), which regulates data privacy in the UK.
An ICO spokesperson said they are in the process of considering the complaints.
They said: “We are aware of an incident involving BrewDog and we are assessing the information provided.”
The ICO said it did not comment on individual cases but all complaints were considered in line with its standard process.
Tilray and the administrators in charge of the sale of BrewDog, AlixPartners, claim they did not provide any information of the kind to Second Best, according to reports.
A spokesperson for Tilray said the company “did not acquire Equity for Punks shareholder data as part of its acquisition of the BrewDog brand and assets; that records system remains under the control of BrewDog plc (in administration)".
“For the avoidance of doubt, Tilray Brands (trading as BrewDog) and its current management team have no involvement in, affiliation with, or responsibility for James Watt’s business activities, including Second Best.
“Tilray Brands did not authorise, facilitate, or participate in the communications reportedly sent to former Equity for Punks investors and did not authorise the use of any acquired data for such purposes.
“We take data privacy with the utmost seriousness and can categorically confirm that no data held by Tilray Brands has been shared with external entities or former directors. All communications with our customer base are conducted in strict compliance with GDPR.”
