Any business that processes “personal data” has to comply with data protection law. As a result, almost every business has to register with the office of the regulator, the Information Commissioner. The fee is just £35 but failure to register is a criminal offence.

Company directors must ensure that any personal information obtained is used lawfully. Whether obtained for the latest marketing campaign, the introduction of CCTV or phone call recording, new security measures or disposing of those dusty old files in the basement, companies will need to comply with the eight data protection principles of the Data Protection Act 1998.

The Information Commissioner can (and increasingly does) bring criminal actions for persistent breaches of the law, or for unlawfully obtaining or disclosing personal information. The first step is usually the issuance of an enforcement (or ‘stop now’) notice and while no fine will be imposed at this stage, the reputational damage can be significant. In the last 12 months alone, Phones 4U, Littlewoods and Orange have all been required to sign undertakings as to their future conduct following investigations or complaints.

An internal audit of what personal information your business holds and how it processes it is the best way to achieve compliance. Further, companies should ensure all employees are given a copy of the company’s data protection policy. Businesses should also review the security of their IT systems and premises regularly. For more help, the website of the Information Commissioner (www.ico.gov.uk) has a host of practical guidance notes for businesses including guidance on self-auditing.

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