Small businesses are less aware of the principles of the Data Protection Act than their larger peers, according to recent research commissioned by the Information Commissioner's Office (ICO).
Despite the fact that 94 per cent of the SMEs surveyed believe that the Act makes good business sense, just 22 per cent are aware that they are required to keep customer information accurate and up to date.
To help small businesses understand their obligations under the Act, the Information Commissioner has launched additional guidance aimed specifically at the sector.
"The key principles of the Act include ensuring that personal information is held securely, that it is accurate and up to date and that it is used for purposes which people have been told about," said Information Commissioner Richard Thomas.
David Hobson, managing director at Global Secure Systems, said that the ICO findings come as no surprise.
"Data compliance has always been something of a Cinderella topic among SMEs, although we have found that larger enterprises are starting to realise the need for maintaining accurate customer data and storing it securely," he said.
"I suspect that, as the provisions of the Companies Act 2006 become law, which are due to be phased in progressively between now and late next year, SMEs will rise to the challenge.
"In the meantime, it is down to the ICO and specialists to educate companies on the need for accurate and secure records."
The ICO guidance provides a basic training framework to help staff understand their data protection requirements.
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