10 legal expert
There's a high price to pay for failing to protect data
Most businesses will at some stage deal with personal data regarding their customers, employees or other individuals, whether as part of the service or goods provided or during the course of their business, says Lance Terry (pictured) of Glanvilles
With the power of the Information Commissioner’s Office (ICO) to issue fines of up to £500,000 for any serious breach of the Data Protection Act 1998, and the detrimental effect on a business’ reputation due to such breach, it is vital businesses are aware of their data protection obligations.
The following cases demonstrate the importance of businesses complying with data protection law.
Sony Computer Entertainment Europe (Sony) – January 2013
A hacker of the Sony Playstation Network Platform was able to access the personal information of millions
of customers, including their account passwords and payment card details.
The ICO held this to be a serious breach of the seventh data protection principle, ensuring appropriate technical and organisational measures are taken against unauthorised processing of personal data and against accidental loss, destruction, or damage to personal data.
A fine of £250,000 was imposed by the ICO, which found Sony had failed to have such measures in place and had failed to anticipate further attacks and take appropriate safety measures sooner.
British Pregnancy Advice Service (BPAS) – February 2014
Similarly, the seventh data protection principle was seriously breached as a hacker was able to gain access to the personal data of patients seeking advice on pregnancy and abortion issues. In addition, the ICO found the BPAS in breach of the fifth data protection principal, ensuring procedures are in place to delete data no longer required.
In this case the ICO awarded a fine of £200,000.
Conclusion
The fines above send a clear message to businesses that policies and procedures for collecting, storing or processing personal data need to be regularly reviewed and updated.
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It is important that businesses put in place internal procedures to avoid potential data protection breaches and record evidence that they have recognised the risks of handling personal data and complied with data protection law.
Details: Lance Terry 01329-282841
lance.terry@glanvilles.co.uk www.glanvilles.co.uk
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