Data Protection Act

04 January 2004

Partner Peter Hawkes, of Furley Page, warns that latest Data Protection regulations could prove a real headache for businesses which have not assessed their liabilities.

Businesses should make sure that they check out their liabilities under the Data Protection Act 1998, which came into force on 1 March 2000. Firms which fail to do this could find themselves liable for substantial damages. The Data Protection Act 1998 in practice could affect almost any business, small or large, and you need to look carefully to ensure that your firm is complying with the regulations.

The Act greatly increases the rights of individuals whose data you may be handling. The Act applies to all data controllers that are established in the UK, for example companies incorporated under UK law, in relation to data that they process in the UK.

Processing means the storage or processing of all data of a personal nature electronically or manually. The Act does not cover "generic data", that which cannot be linked to an individual, but does cover data that could identify a person directly or indirectly including identification numbers or one or more factors specific to physical, psychological, mental, economic, cultural or social identity. The key question to ask is whether specific information relating to particular individuals is accessible from the records.

There are additional restrictions on the processing of any data pertaining to racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-union membership, health and sex life.

There is particular concern relating to Internet websites that may capture a wide range of information from visitors' computers including e-mail addresses and other sites visited which might enable the identification of an individual.

Individuals now have the right to access what data is being held about them, where it came from, for what purpose it is needed and who will receive it. All data processors must ensure that all reasonable security precautions have been taken prior to the transmission of data over a network, including measures against accidental or unlawful destruction or accidental loss, alteration, unauthorised disclosure or access.

Courts can now award compensation for damage caused by any breach of the Act and also for distress in certain circumstances.

For more information please contact Peter Hawkes, Senior Partner & Head of Dispute Resolution.
 

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