MPs call for crackdown on data misuse

Executives at companies found guilty of selling customers’ data without their permission should be handed custodial sentences, according to a group of influential MPs.

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A Justice Committee report on the theft of personal data says that the maximum £5,000 penalty magistrates can impose under the Data Protection Act is not enough to stop “serious offences that can cause great harm”.

Sir Alan Beith, the chair of the Justice Committee, adds: “Fines are used to punish breaches of data protection laws, but they provide little deterrent when the financial gain exceeds the penalty.”

The Committee wants Justice Minister Ken Clarke to introduce powers to hand out custodial sentences already agreed by Parliament.

The report adds that potential misuses are being missed because the Information Commissioner does not have the power to force companies to undergo information audits.

Sir Alan says: “The Information Commissioner’s lack of inspection power is limiting his ability to identify problems or investigate potential data abuses.

“Ministers must examine how to enable the Commissioner to investigate properly without increasing the regulatory burden on business or the public sector.”

The Committee also backed Government calls to ban referral fees - money paid by lawyers for data on drivers involved in accidents - in personal injury cases.

Read Marketing Week’s Michael Barnett on why referral fees should be banned

Read Marketing Week’s Russell Parsons on why customers need to be made more aware of data misuse

Readers' comments (1)

  • Fact is no one is taking any notice of all the data protection guidelines set out by the govt.

    Even with the new cookie act, the only company who has taken proactive action is the ICO..update of the cookie format is the first thing you notice when one visits their website-"leading by example"

    Others either turn a deaf ear or are suddently blind, millions of companies continue to break the law every singe second of the day 24 x 7 .They collect personal visitors' data online without consent.

    How is the govt then going to prosecute law breakers of the above acts..it's impossible.

    The only victims who suffer are the consumers and customers, individuals and there is nothing we can do about this ongoing malpractise.

    Sad fact but its the reality of the current situation !

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