LV's nearly 420,000 Hong Kong customers' information leaked, involving names, addresses, phone numbers, etc. Will LV be heavily fined? What should the customers involved do?

Nearly 420,000 LV customers had their data “stolen”, including names and shopping records! Hong Kong: 15 days after the notification, is being investigated, if the leakage and not rectify the error or face criminal proceedings

Following in the footsteps of Dior and Cartier, French luxury goods company Louis Vuitton has also "failed" to secure its users' data.
"Preliminary information indicates that the incident resulted in approximately 419,000factCustomers' personal information is affected." July 19factThe Office of the Privacy Commissioner for Personal Data ("PCPD") has received a data breach notification from Louis Vuitton Hong Kong Limited ("LVHK") on July 17, involving the personal numbers of local consumers.You can also make a phone call to the office, record your call, etc.PCPD said it has initiated an investigation into LV, including whether LVHK has delayed notification, among other issues.

Earlier this month, news broke that LV had been briefly accessed by an unauthorized third party to the company's system, which occurred in China.factThe leakage of user information in the region.

A reporter from the Daily Economic News checked the official website of PCPD to confirm the incident. In a reply to the question "About the LVHK data leakage incident" on July 19, PCPD said.Received data breach notification from LVHK on July 17th.

"Based on information submitted by LVHK.Its French head office detected suspicious activity on the system on June 13 until July 2, when the impact of the incident was confirmed.factThe customer, LVHK, was informed of the incident on the same day.Preliminary information shows that about 419,000 Chinese people are living in China. Preliminary information indicates that about 419,000 ChinesefactCustomers' personal data are affected, involving name, serial number, date of birth, address, postal address, telephone extension, etc.

In particular, PCPD urges organizations to notify them as soon as possible if a data breach occurs, so as to help the relevant organizations and affected individuals to take appropriate and timely measures to minimize the damage to the parties involved in a data breach.

"If it is recognized that LV has compromised privacy and does not correct the mistake, (he) may face criminal proceedings."On July 22, Daily Economic News interviewed PCPD as a consumer, who said that there has been no new progress since the July 19 response to the LVHK data leakage incident, and that the investigation may last half a year to a year.

Recently, LV's "Big Ship" in Shanghai has frequently hit the social media, and its "boat tickets" (tour tickets) and "meals" are hard to find."The leakage of the data would greatly negate the impact of 'The Big Ship' on the brand, especially in the eyes of the high-end consumer, and the image of Louis Vuitton would be greatly tarnished."Zhou Ting, an expert in the luxury industry, pointed out in an interview with the Daily Economic News thatNot only in ChinafactRecently, LV has also been involved in customer information leakage incidents in Singapore and Korea.”[The LV information breach] is not a case in point in the luxury industry, but for LV, it could very well be a watershed moment for the brand as it heads down the line."

From May to July this year, there have been three consecutive months in which major overseas brands have been exposed to user data leakage. Reporters note that Dior and LV belong to the LVMH group. When will the data security "holes" in the luxury industry be closed?

How to determine whether this LV user leakage incident involves a delay? "It depends on whether LVHK notified us as soon as they found out about the leak, or whether they notified other parties in a timely manner.Why did it take 15 days to notify us, and we will also consider what happened in the meantime."When the Daily Beast interviewed the PCPD as a consumer on July 22, they said."If LV is recognized as having compromised privacy and does not correct the mistake, (he) may face criminal proceedings."

"The LVHK concerned should strictly observe the followingfactPersonal Data (Privacy) Ordinance, cooperate with the PCPD investigation, and if recognized for delayed notification, may face administrative penalties, civil claims and loss of reputation." Jia Yuqian, a lawyer from the Shanghai branch of Beijing Longan Law Firm, pointed out in an interview with the Daily Economic News.While the law does not precisely define the length of “immediately”, reference can be made to the existing industry standard that requires “processors of personal information to report to the supervisory authority and notify the affected individuals within 48 hours of discovering the leakage.”

Jia Yuqian further pointed out to the reporter, if the enterprise knows that personal information leakage but let it go, or can be remedied but did not take measures, may constitute a delay in the notification of the recognized factors. Although the LV leakage of user information does not include banking information within the “financial information”, but its leakage will also constitute a double infringement of consumer privacy and property rights.

July 21, the "Daily Economic News" reporter in the capacity of a consumer, on the personal information leakage of hidden dangers to the LV official customer service and itsMainlandWhen asked by store personnel, theA number of staff members said, “ChinaMainlandNo privacy breaches have occurred.”The staff added, “LV values the trust and privacy of our guests and we apologize for any inconvenience or inconvenience this incident may have caused.”

"LV is not only in China.factIn addition, there have been incidents of customer information leakage in Singapore, Korea and other countries." Zhou Ting said to the "Daily Economic News" reporter, she noticed that the recent LV data security incidents occur frequently.

When it comes to why LV's user information is "stolen" in many countries or regions around the world, theTing Zhou thinks thatThis reveals that the brand does not pay attention to customer data management, so LV has not invested sufficiently in data security, "resulting in a lower level of security on its network, which can be easily breached; at the same time, because of the lack of respect (in addition to the privacy policy), there is a for the convenience of work on purpose" of theprivacy

During the period of time when LV's user information was leaked, its “big boat” located in the center of Shanghai's busy high-end consumption area was still full of people. Reporters note that on June 28, "Louis Vuitton" officially opened to the public. Before the unveiling of the ship, the relevant departments even implemented traffic control. Whether as a long-term commercial building or a short-term installation, LV has invested a great deal of resources, reflecting the confidence and dedication of this first-tier international fashion brand to the Chinese market.

However, its "boat tickets" and "meals" are all hard to find, causing some consumers to be dissatisfied. On the evening of July 21, Daily Economic News reporter saw through LV's official app that its tour tickets up to the end of August had been fully booked; the lunch, afternoon tea and dinner from July 22 to July 27 had also been fully booked. Many netizens reflected on social media platforms that they did not know how and when they could book LV's "boat tickets" and "meals". "We have not received any specific time for the opening of reservation either." On the evening of July 21, LV's official customer service told reporters.

 

"Luxury goods are expensive, but your information is worth more." The sudden data leakage incident of top luxury LV caused many netizens to lament: the privacy of high net worth people in the digital era is actually "running naked".

"Although LV is one of the most recognizable luxury brands in the world, it is still one of the most popular brands in the world.Market ShareThe mystique is disappearing, the trend towards massification of brands is obvious, and the value of brands is gradually decreasing."Zhou Ting pointed out to reporters that how to reshape and improve its brand image and continue to stabilize LV's brand positioning among high-end consumers is the biggest challenge for LV in these years.

In May of this year, another luxury brand belonging to the same LVMH group as Vuitton, the LVMH Group, launched a new brand called "L'Oreal".DiorThere have also been incidents of user data leakage.

According to LVMH's first quarterly report for fiscal year 2025, the group's revenue decreased by 2% to 20.3 billion euros; among them, the revenue of the leather goods and fashion division, which includes LV, Dior, etc., decreased by 4%. The "leather goods and fashion division" accounted for nearly 50% of the LVMH group's revenue, and therefore the decline of the segment is regarded as the main factor for the group's performance not to meet the expectations.

"(User data leakage) has been a systematic problem for LVMH, to change this situation, we must raise the importance of data security, increase data security investment, improve data security level, enhance the team's awareness of data security, strengthen the management of data security process and system regulation, and train the team to respect the privacy of customers in order to solve the data security problem in a systematic, professional manner." Zhou Ting pointed out.

Not only Dior, LV, the Daily Economic News reporter noted that last month (June), theCartierIt has also been exposed as "failing" to protect users' information.Why are luxury goods an easy target for "attacks"?

"Luxury brand customer management is characterized by large customer value, irregular management, low technical level and difficult to define responsibility, so it is an easy target for attack." According to Zhou Ting, it is a common situation in the industry that luxury brands do not have the absolute technical ability to protect data security, yet they possess the most valuable customer data.

In the view of Jia Yuqian and Zhou Ting, the luxury industry frequently appears data security “loopholes”, in addition to the urgent need to make up for the lack of protection at the technical level, but also pending the establishment of a more perfect data protection system.

"Strengthening data security legislation and severely punishing all kinds of data security crimes are the most core protection for realizing data security. Luxury brands have the ability to buildsupremeIn the future, the state and society will also establish a public facility-based data security system based on data security, which will be helpful to luxury brands' data security. At the same time, blockchain will also help data security to a certain extent," Zhou Ting suggested. Zhou Ting suggested.

Jia Yuqian suggests that regulators can require luxury goods companies to establish better data protection systems, "conduct regular data security audits, strengthen supervision and inspection of data processing activities, and improve the industry's overall level of data security".

reporter|Dewey and Hope.

Editing|Cheng Peng Zhang Haini Du Bo  

ProofreadingKim Hye Yu (1924-), North Korean politician, vice-president of the Republic of Korea from 2009

Cover ImageSource: Visual China (Photo)

Reprinted from Daily Economic News nbdnews  

Related articles