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£500,000 penalty for Data Protection Act breaches
Jan 13 2010, 09:26 AM
The Information Commissioner's Office (ICO) will soon be able to hand out penalties of up to £500,000 for serious Data Protection Act breaches, under new powers unveiled this week
Statutory guidance has been published by the organisation explaining how it plans to use this extra ability and it has assured companies that the size of the fine will be proportional.
The ICO will examine the severity of the data breach - looking at factors such as whether it was deliberate and how much damage it caused - as well as its size, what sector it involves and the financial resources of the company involved before determining how much money should be paid.
Commenting on the new power, which is expected to come into force on April 6th, Information Commissioner Christopher Graham said: "A security breach can cause real harm and great distress to thousands of people. These penalties are designed to act as a deterrent and to promote compliance with the Data Protection Act."
In a recent case, the ICO took action against Bellgrange Mortgages and Insurance Services of Stanmore over an incident in which client details were discovered in local residential waste bins.
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