Small businesses breaching Data Act, study shows

Date: 3rd June 2009

A significant number of small businesses are not complying with the Data Protection Act, it has been revealed.

Research by the British Standards Institution (BSI) has shown that 18 per cent of smaller firms, such as partnerships and sole traders, could unwillingly be breaching the act, which stipulates that all personal information handled by companies must be done so lawfully.

Alongside bookkeeping and accounting, legal responsibilities are arguably more important than ever during the economic crisis.

Director of standards at the BSI Mike Low said: "These organisations are handling vast amounts of personal information on a daily basis.

"While it is encouraging that some already have appropriate data protection measures in place … there is still a long way to go."

In addition to Data Protection Act compliance, small firms were recently warned by Cattles Invoice Finance to credit check customers before doing business.