Firms baffled by Data Protection Act

Date: 27th November 2008

Small to medium enterprises (SMEs) are still confused by the Data Protection Act, almost a full decade after it came into force.

A report on smeweb.co.uk highlights recent research by document management group Invu which found that around a quarter of small businesses are in the dark over whether they are in compliance with the act.

Under the terms of the act, members of the public have more influence and rights over how their personal details are collected, stored and shared between parties.

David Morgan, chief executive of Invu, told smeweb.co.uk: "The premise of the Data Protection Act is very solid but implementing and managing it is not quite so clear, so it's little wonder that many SMEs are confused.

"Businesses often don't have the time, budget or resources to ensure that they are fully compliant with legislation."

He concluded that the government needs to "take stock" and help SMEs understand the act and its implications.

Earlier in November, research by Intuit found that the majority of British firms felt the government should be doing more to support them.