In a recent decision, the Regional Court of Kiel (LG Kiel, judgment of 29.02.2024 – 6 O 151/23) strengthened the protection of corporate personality rights. A medium-sized family business that was financially damaged by an incorrect report on a platform was ruled in its favor. The platform used artificial intelligence (AI) to automatically evaluate and disseminate business information – a process that led to the dissemination of false information due to an error. The ruling clearly shows that AI-supported systems are not a free pass for misinformation through AI.
What had happened?
The company, which specializes in the construction and sale of conservatories and patio roofs, was incorrectly shown as being threatened with insolvency on a platform for querying business information. The report actually referred to a different company, but an automated process on the platform led to an assignment error. This error in AI processing led to the dissemination of false information. When the company drew the platform operators’ attention to this error, the information was deleted, but the platform refused to issue a cease-and-desist declaration for future cases.
The court’s decision underlines that while AI-based data processing can create efficient sources of information, it can also lead to serious consequences if incorrect data is processed and published. Incorrect information from AI, especially if it contains false economic information, can cause lasting damage to a company’s reputation and destroy trust among business partners or customers.
How can companies take action against misinformation from AI?
Companies have a legal right to take action against the dissemination of false information by AI. The right to injunctive relief under Section 1004 of the German Civil Code (BGB) in conjunction with the general right of personality protects the right to social validity and the right to a correct representation of one’s own economic situation. This protection is particularly relevant in the digital world, in which AI-supported platforms automatically process and link large volumes of data.
If companies discover false information disseminated by AI-generated data, they can proceed as follows:
- Contacting the platform: Companies should inform the platform operators immediately about the incorrect information and request that it be deleted. In the event of incorrect information from AI, this may require clear communication about the source of the error, especially in the case of recurring errors.
- Request for a cease-and-desist declaration: To ensure that the error by the AI does not occur again, companies can request a cease-and-desist declaration. This gives them the right to claim compensation if the AI provides incorrect information again.
- Legal action: If no agreement can be reached, legal action can be taken to enforce injunctive relief and compensation for pre-litigation costs. Protection against misinformation by AI can be asserted in various legal areas, from general personal rights to competition law.
Risks of misinformation through AI in the corporate context
The decision by Kiel Regional Court impressively demonstrates that automated systems and AI for processing and publishing data must also be carefully controlled. Digitalization brings enormous benefits, but also risks – especially when false information about a company is circulating. False information through AI can lead to customers being unsettled and business partners questioning the cooperation. Especially in industries with a high level of transparency, such as business, media and copyright law, such misinformation can cause considerable damage.
What is misinformation through AI?
Misinformation by AI refers to the unintentional dissemination of false or misleading information by automated systems. This can happen when an AI has been inadequately trained, accesses outdated data or, as in this case, publishes misleading information due to a mapping error. This type of misinformation can have significant consequences for companies, as it threatens a company’s reputation, social standing and economic status.
How can AI avoid misinformation?
For companies that rely on AI-supported platforms for data collection, it is important to choose a trustworthy provider that minimizes errors in data processing. AI systems should be continuously monitored and tested for sources of error in order to prevent the dissemination of false information. Above all, legal aspects such as the protection of general privacy rights and corporate privacy rights should be taken into account when using such platforms. The case law of Kiel Regional Court makes it clear that operators of AI-supported platforms are also liable for errors if misleading or damaging information is disseminated by automated processes.
Reputation protection in the digital age: legal steps against misinformation by AI
The digital world offers many opportunities, but also brings challenges. False information from AI can have far-reaching consequences for companies. The ruling by Kiel Regional Court shows that companies can take legal action to protect their reputation and prevent false information from being spread by AI. The decision thus strengthens reputational protection in the digital space and provides companies with a tool to defend themselves against incorrect data publications.
