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Welcome to The Fineprint, where we translate legal jargon into plain English—so you don’t have to Google every third word.

True or false… In Tuszyn, Poland, a Winnie the Pooh theme design is mandatory in at least one feature of playgrounds or children’s areas.
_{You can find the answer at the end!}

Now let’s take a look at the most interesting legal developments from over the past 7 days.

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PRIVACY

Uber Fined $324 Million By Dutch Data Police Over Technicality

Why we’re paying attention… This story is a clear example of how even temporary or technical lapses in compliance with global privacy laws can carry steep penalties. It highlights the need for businesses to stay ahead of regulatory shifts and the growing vigilance required to stay inside the lines of the law where user privacy is concerned.

Earlier today, Uber was fined $324 million for data transfer violations by the Dutch “Data Protection Authority” (DPA).

The DPA busted the ride-sharing company after finding that it transferred European taxi drivers' personal data to the US without adequate safeguards.

Uber’s data transfers supposedly crossed into illegal territory in 2021 after a “privacy shield” agreement broke down between the US and the EU.

The EU requires companies to have contractual agreements with the EU called “transfer tools” that outline safe data transfer practices.

A modified version of the privacy agreement between the EU and the US came back into effect in 2023.

So it seems the DPA is fining Uber for not having a transfer tool in place during the two year period where the “shield” was down.

In response, a spokesperson for Uber said: “Uber’s cross-border data transfer process was compliant with GDPR during a 3-year period of immense uncertainty between the EU and US. We will appeal and remain confident that common sense will prevail.”

The investigation began after complaints from more than 170 French drivers although the DPA nature of the claims has not been made clear.

The data shared by Uber allegedly included sensitive information like account details, taxi licenses, location data, and sometimes criminal and medical records.

This is Uber's third fine from the Dutch DPA, following previous penalties of €600,000 in 2018 and €10 million in 2023.

To put today’s fine in perspective, it clocks in at almost 1% of Uber’s 2023 global turnover of €34.5 billion.

This story highlights the increasing need for vigilance as companies must navigate ever-evolving and complex privacy laws to avoid penalties.

SNIPPETS

On August 24th, Telegram founder Pavel Durov was arrested in France over serious allegations that the platform has facilitated criminal activities, including money laundering, drug trafficking, and the distribution of child sexual content. Despite Telegram’s reputation as a defender of privacy and human rights, its strong encryption and limited moderation have made it a hotspot for criminal use. French authorities cited Telegram’s inadequate cooperation with law enforcement and failure to moderate illegal content as reasons for the arrest. Critics argue that since Telegram is not fully encrypted, the company technically could monitor and censor users but has chosen not to, sparking a debate about the balance between privacy and the need for oversight. Should platforms allow private messaging free from government or corporate scrutiny, or should privacy be limited to prevent criminal abuse? Meanwhile, reports indicate Durov's detention has been extended and could last up to another 96 hours.

Authors sue AI company Anthropic for copyright infringement. Three writers filed a class action lawsuit against OpenAI competitor, Anthropic, claiming the company used pirated copies of their books to train its Claude AI model without permission or compensation. The suit alleges Anthropic downloaded a dataset called "Books3" containing nearly 200,000 pirated books from illegal websites to use as training data. Anthropic has publicly acknowledged using The Pile dataset, which included Books3, to train Claude. The authors argue this threatens their livelihoods by enabling AI to generate book-like content that competes with human writers. They're seeking damages and an injunction to stop Anthropic's alleged infringement. As lawsuits against prominent AI companies continue to rack up, there is increasing pressure on the legal system to define what constitutes fair use in the age of artificial intelligence.

Kourtney Kardashian faces class-action lawsuit for false advertising. Back in 2022, Kourtney Kardashian launched her supplement brand "Lemme," aiming to inspire healthier living through wellness and nutrition. Since its debut, Kourtney has introduced a curious lineup of gummies—Lemme Purr (for improved odor and taste… *ahem* down there), Lemme Debloat (for bloating relief), and Lemme Matcha (for cellular energy and metabolism). However, critics are claiming that these gummies are actually dummies. An OB-GYN pointed out the lack of clinical evidence behind claims of altering the odor and taste of a lady’s nether regions, emphasizing that the area naturally self-cleans and already contains the necessary probiotics. Medical experts also warn that Lemme Debloat, with three grams of sugar per serving, might actually worsen bloating, while Lemme Matcha reportedly falls short on matcha content to back its energy-boosting promises. Now, the Zimmerman Reed lawyers are saying Lemme Sue Kourtney Kardashian for false advertising as they rally dissatisfied customers to join a class-action lawsuit.

Shein sues Temu. Chinese shopping rivals, Temu and Shein, have spent years fighting over who can sell the cheapest LED strips and portable banana peelers. But on August 19th, their war spilled into the legal realm, after Shein filed a lawsuit against Temu—accusing the company of operating as an unlawful enterprise involved in counterfeiting, theft of trade secrets, intellectual property infringement, and fraud. This accusation is particularly ironic, given that Shein itself is entangled in a class-action lawsuit from major brands like Levi Strauss, Uniqlo, and H&M, who allege that Shein has been copying their designs. The lawsuit also alleges that Temu impersonated Shein on Twitter to mislead customers into purchasing Temu's products. Additionally, it claims that Temu used Shein’s trademark in Google ads, causing significant financial losses for Shein, estimated at around $30 per transaction. It be ya own people… 

Live Nation and Ticketmaster face massive antitrust lawsuit. Nine states have joined the lawsuit in the last three months, making for a growing total of 39 states. Back in March 2024, The US Department of Justice and 30 states sued the entertainment giant for alleged monopolistic practices in the live event industry. The lawsuit accuses Live Nation of colluding with competitors, aggressively acquiring rivals, intimidating venues, and exploiting consumers through inflated ticket prices and excessive fees. The complaint is seeking to break up the Live Nation-Ticketmaster merger and is now also seeking to secure compensation for affected consumers. The takeaway? With great market power comes great responsibility—and those who prioritize value extraction at the expense of value creation may soon find the DOJ hitting them with a surprise setlist of regulations.

Avon has filed for Chapter 11 bankruptcy to shield itself from 200 active lawsuits. The cases allege that its talc-based products, such as face powders and eyeshadows, caused ovarian cancer and mesothelioma. In response, Avon is employing the controversial "Texas Two-Step" strategy, whereby the company creates a separate entity to assume liability for these lawsuits, allowing the main business to continue operating smoothly. The bankruptcy, which only affects U.S. operations, will pause all litigation for 12-18 months while the company can continue business as usual. The Texas two-step may give Avon a new lease on life financially, but whether their reputation survives or not will be decided in the court of customer opinion.

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The answer to today’s “did you know” is…

False. Winnie the Pooh is actually banned from all playgrounds and play areas as he was deemed an “inappropriate hermaphrodite” due to the fact he doesn't wear pants and has non-gender-specific genitalia.

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