Claimed Failure to Disclose GDPR’s Collateral Impact Leads to Class Action Against Nielsen Holdings

In what could be a harbinger of things to come for business models negatively impacted by the throttling of data flow under the European Union’s General Data Protection Regulation (“GDPR”), Nielsen Holdings (“Nielsen”) was named in a putative class action complaint on August 22, 2018, for allegedly misrepresenting the anticipated effects of GDPR on Nielsen’s business model.  Importantly, the class action takes aim not at Nielsen’s ability to comply with GDPR, but rather the effects of GDPR on the big data platforms used by Nielsen.  Nielsen provides consumer market analytics, particularly regarding digital media and e-commerce.  When big data platforms and associated analytic providers began restricting access to consumer data in order to comply with GDPR, it apparently negatively impacted Nielsen’s business model.  Those effects surfaced in Nielsen’s latest Q2 financial report, causing its stock to drop by more than 25 percent, and giving rise to the class action claims.