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Directors of companies breaking data law could be jailed if proposed new legislation is introduced. The warning came after news that more than 40 British companies face prosecution for allegedly purchasing personal data on thousands of prospective employees in order to vet them.
Partner and commercial specialist at law firm Shoosmiths, Nick Fenner, said: “Section 55 of the Data Protection Act (DPA) makes it a criminal offence to obtain and sell personal data from individuals without their consent. That catches investigators who obtain personal information about an individual and sell it on.
“But it means companies buying personal data also risk prosecution, because by requesting the information they may have ‘procured' the offence. The Information Commissioner’s Office (ICO) has made it clear that businesses can no longer turn a blind eye to the source of any personal data they use.
“Businesses using personal data should review their processes and how they engage with their information agencies.”
News of the allegations comes against a backdrop of threatened tougher penalties for companies and individuals in breach of data rules, including heavy fines and even prison sentences. Substantial fines in the form of a percentage of turnover could be introduced this summer, while the Government has already agreed that the ICO can audit public bodies.
The ICO is now pressing for the right to audit private companies, too, in response to increasing numbers of public organisations such as local authorities and NHS trusts outsourcing their IT functions. At the same time, it wants to see prison sentences introduced for those in breach of Section 55.