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OFT stops misleading data protection mailings - again

OUT-LAW News, 05/06/2003 

Two data protection notification agencies have been chastised by the Office of Fair Trading for sending misleading adverts to businesses. The adverts gave the impression that they came from official bodies and that each recipient was obliged to register with the sender at a cost of £95.

It's not the first time the OFT has intervened in what is coming to be recognised as a popular scam.

The OFT has obtained undertakings from Francis Boyd and Christopher Williams (both involved with Crown Data Collection Enforcement Agency and The Data Collection Enforcement Agency based in Hyde, Cheshire) that they will no longer issue misleading advertisements about data protection notification services. Gerry Stanley, the proprietor of the contact address for these businesses, also gave an undertaking relating to his involvement.

Similar undertakings have been received from a separate sole trader, Keith Kennedy, in relation to advertising from the Data Protection Registration Agency, also based in Hyde, Cheshire.

The OFT was acting under The Control of Misleading Advertisements Regulations (CMARs) 1988, which give the OFT the power to step in if the public interest requires that advertisements complained of should be stopped by means of a court order.

While most businesses processing personal data are required by law to notify the Information Commissioner, the fee is only £35 and many small businesses that process personal data for limited purposes are not required to notify. Businesses can notify the Information Commissioner directly.

The OFT has previously taken action against a number of similar mailings and is working closely with the Information Commissioner and local Trading Standards Services to tackle the problem. Unfortunately, to date there has been little in the way of punishment, which means that the practice is not being deterred.

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