James Watt, the co-founder of BrewDog, is at the centre of a data privacy row following a surprise attempt to repurchase the beer company. The UK's data watchdog, the Information Commissioner's Office (ICO), has received multiple complaints regarding emails sent by Mr Watt to former BrewDog crowdfunding investors, raising questions about how their personal data was obtained.
The controversy stems from an announcement by Mr Watt earlier this week, detailing a plan to regain control of BrewDog through a new venture named Second Best. This audacious proposal involved directly contacting tens of thousands of individuals who had previously invested in BrewDog through its 'Equity for Punks' crowdfunding scheme. Mr Watt offered these 43,000 former investors, whose shares became worthless after BrewDog's sale in March, an equivalent stake in Second Best for free.
Many recipients of these emails expressed confusion and concern over how Mr Watt had acquired their contact information. This has prompted several individuals to lodge formal complaints with the ICO, alleging potential breaches of the General Data Protection Regulation (GDPR). GDPR sets stringent rules on how organisations must collect, store, and process personal data in the UK.
Mr Watt has denied any wrongdoing, stating that the communication was sent to fellow shareholders following legal advice and using lawfully obtained data, in connection with their legitimate interests. However, he has not provided specific details on how the contact information was sourced. Both Tilray, the US cannabis and drinks firm that acquired BrewDog's brand and assets for £33 million in March, and AlixPartners, the administrator of the remaining BrewDog entity, have reportedly denied providing Mr Watt with any shareholder data.
The ICO, which has the authority to issue fines or compel changes in data handling practices, is currently assessing the complaints. Legal experts suggest that while no breach has been confirmed, the situation raises significant questions about data selection methods and the legality of the email campaign. The outcome of the ICO's review will determine whether further action is taken against Mr Watt's new venture.