Source: Softalk

7 December 2005

Small business data protection fines could top £100 million

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:

1. Fairly and lawfully processed
2. Processed for specified purposes
3. Adequate, relevant and not excessive
4. Accurate and, where necessary, kept up to date
5. Kept for no longer than necessary
6. Processed in line with the rights of the individual
7. Kept secure
8. 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 Simon Bates "Using contact management software such as OfficeTalk or collaboration software such as WorkgroupShare to share contact data in Outlook makes it much easier for small businesses to abide by these principles."

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 Simon Bates.

Beware of bogus registration agencies 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."

About Softalk
Softalk provides a range of messaging, collaboration and contact relationship management software solutions specifically designed to benefit small to medium size businesses. Softalk is in the Deloitte Fast 50 of the UK's fastest growing technology companies. It was set up in 1993 and is a privately held company headquartered in Maidenhead in the UK with a US office in New York. Customers include American Express, British Chamber of Commerce, Cancer Research, Cap Gemini France, Cisco, Lufthansa and Xerox. Its products include Softalk Collaboration Suite which includes WorkgroupMail, an email server for small businesses; WorkgroupShare to enable organisations to share Outlook folders without the need for Microsoft Exchange; and Softalk Organizer, a web-based collaboration client enabling users to share calendars, contacts and email. OfficeTalk is a low cost contact and customer relationship management solution enabling the whole team to share corporate information. For more information visit www.softalkltd.com or join in the conversation at our blog at talk.softalkltd.com