UK e-traders breaking data laws

NEWS Justin Watts at technology law firm Bristows said companies just want to start trading quickly. In terms of ensuring their compliance with the 1998 Data Protection Act he said: "SMEs (small and medium-sized enterprises) don't want to know. They tend to think the costs outweigh the benefits." The London Chamber of Commerce has joined forces with law firm Manches to investigate 300 companies. Figures released today show that less than half of those questioned were able to comply with even the most basic requirements of the Data Protection Act. Watts said the perspective taken by smaller companies is that if they are generally well behaved they probably won't be targeted. The approach of these companies is to copy the key players and take a risk that they will not be the first to be caught and fined. Acting chief executive of the London Chamber of Commerce, Peter Bishop believes it is more an issue of ignorance. He said: "I think it is a case of not seeing it as a major issue." He also argued that larger SMEs do run the risk of being targeted by government. However, so far no companies have been prosecuted under the Data Protection Act and Bristows is not aware of any websites that have closed down. Watts claimed that in this sense, the Data Protection Act is "being a bit toothless". He added that the Information Commissioner, who enforces the act, has been signalling that she intends to toughen up on enforcement.