WPP Scangroup ordered to pay damages over data breach

A subsidiary of the marketing giant WPP has been found liable for a breach of data rules in Kenya.
The country’s regulator ruled the company had mishandled the personal information of Bharat Thakrar, the former boss of its business in Africa.
Thakrar, former chief executive of WPP Scangroup, one of Africa’s largest marketing agencies, launched a lawsuit against the FTSE 100 business this year.
WPP Scangroup suspended Thakrar, who founded the Nairobi-based business, in 2021 after an investigation into allegations of misconduct, which led to his resignation.
Thakrar alleged that the investigation had used access to his laptop and other personal data “without his knowledge and consent”, and that these breaches had caused him “profound personal and professional harm”.
Kenya’s Office of the Data Protection Commissioner has found WPP and its subsidiary Scangroup liable for breaching the country’s Data Protection Act over the handling of Thakrar’s personal information. The regulator ordered the business to pay 1.95 million Kenyan shillings (£11,600) in compensation for failing to comply.
The ODC noted that during its investigation, WPP Scangroup had refused to provide it with copies of the report that had been shared with the Kenyan Capital Markets Authority.
Patricia Ithau, the new chief executive WPP Scangroup, said in a statement that the company disagreed with the regulator’s determination and that it was considering an appeal.
WPP has struggled in recent years as its exposure to the Chinese market has acted as a prolonged drag on business. This summer the advertising group was forced to downgrade its revenue forecasts for the remainder of the year, but its chief executive, Mark Read, has said momentum was starting to recover.
The group returned to growth in its most recent quarter, thanks to winning new media accounts with companies including Amazon and Unilever. Reported revenue less pass-through costs rose 0.5 per cent on a like-for-like basis in the third quarter to £2.9 billion. In its “rest of world” division, which includes its operations in Africa as well as Asia Pacific, Latin America, the Middle East and central and Eastern Europe, like-for-like revenues slipped by 2.2 per cent in the period.
WPP is also in the process of disposing of its majority stake in the corporate public relations firm FGS Global. The sale to the private equity firm KKR is expected to close in the fourth quarter, with net proceeds of about $767 million (£604 million).
The FTSE 100 marketing house was built by Sir Martin Sorrell, who bought dozens of advertising, marketing and communications agencies. Sorrell, 79, left the company six years ago and has since been replaced by Read, who has tried to simplify the business, bringing many of its agencies under one roof.
WPP was approached for comment.