Posted: Wed, December 7, 2005
Small businesses violating the Data Protection Act face fines of up to £5,000
Small businesses could face fines totalling more than £100 million if they fail to comply with the Data Protection Act. Small business software company Softalk is warning that that the Information
Commissioner's Office has just launched an enforcement campaign and that the software used by many small businesses makes it difficult for them to abide by the principles of the Data Protection Act.
Businesses that fail to register or breach the act face maximum fines of up to £5,000 per offence and the Information Commissioner's Office regularly prosecutes offenders.
Softalk joint CEO Simon Bates said, "We provide software that helps small businesses manage their contacts, customers and suppliers but we are concerned that many small businesses might be
violating the Data Protection Act. Managing your customer relationships effectively is essential to running a profitable business but you need to be aware of your responsibilities under the Data Protection
Act."
The eight data protection principles are:
- Fairly and lawfully processed
- Processed for specified purposes
- Adequate, relevant and not excessive
- Accurate and, where necessary, kept up to date
- Kept for no longer than necessary
- Processed in line with the rights of the individual
- Kept secure
- Not transferred to countries outside the European Economic Area unless there is adequate protection for the information
"If individual employees are holding customer data in Microsoft Outlook on their own PC then it becomes virtually impossible to ensure it is only being used for the appropriate
purpose and that it is accurate and up to date. It also makes it difficult to ensure that you are not keeping data longer than is necessary." explained Bates
Softalk is also concerned that just 54 per cent of the UK's 3.9 million small businesses have registered. "Despite the original act coming in 21 years ago many small businesses still don't realise that
they need to register," said Bates.
Softalk is also warning small businesses not to become victims of data protection scam agencies who send letters demanding fees of up to £135 to register. Simon Bates says: "If you receive one of
these letters you should report it directly to the Information Commissioner who will also advise you if you need to be registered. You can then register directly for just £35."
For more information visit www.softalkltd.com or join in the conversation at the company's blog at talk.softalkltd.com
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