Data Protection Lapses a Major Problem for Web Businesses

In a recent Radio 4 interview, Information Commissioner, Richard Thomas, warned organisations that they have to take personal data more seriously. He reported that his office received some 24,000 enquiries and complaints about personal information in the year 2006-2007, some 35% of which were complaints of which 77% resulted in some form of remedial action.

Apparently, the breaches occurred across the board – in businesses, government departments and other public bodies. The main offenders, however, were internet firms which accounted for 13% of applications in which remedial action was taken.

In his interview Mr Thomas expressed particular concern about internet search engines which keep detailed histories of individuals’ online activity. He said “We are leaving … electronic footprints through our lives these days”. The next most common group of companies about whom complaints were made, were banks (12%), direct marketing organisations (10%) and telecoms companies (7%).

The most common problems with banks and government departments appears to be breach of online security which included a problem with the Medical Training Application Service website which left trainee doctors’ personal details open to public view, staff at an Orange call centre who had shared log-ins which meant that the customer information was available even to unauthorised workers and problem that the Foreign and Common Wealth Office which meant that people coming to the UK from India had their personal information visible to others. The Child Support Agency also issued passwords to temporary staff which caused the information commissioner serious concern.

Mr Thomas stated that he thought that the line up of banks, retailers, government departments and public bodies etc that admitted serious security lapses was “horrifying”. Deliberate misuse of personal data was rarer – the ministry of justice has said that prison sentences could be given to people involved in such activities.

This update is designed to highlight the problems around data protection compliance, particularly in the sector most of interest to this firm, namely the internet.

Maitland Kalton is shortly appearing on Legal TV (Sky channel 215) to debate data protection issues around network websites such as Facebook. The problem with such sites is that people often fail to read the terms of business and do not realise how their data is going to be used. In Maitland ’s opinion, companies are exploiting the innocent and uninitiated in order to obtain potentially valuable marketing data to allow them to exploit the market place, especially with the young whose spending power is often greater than their age might indicate, largely due to a lack of major financial commitments.

For further information and guidance on appropriate privacy strategies, privacy policies, privacy law/data protection law, contact Maitland Kalton. Should you prefer to telephone, call us on +44 (0)20 7278 1817

Kaltons Solicitors, Suite 302, Spitfire Studios, 63-71 Collier Street, London, N1 9BE. Telephone +44 (0)20 7278 1817

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