For the first time courts will be able to jail people who trade in or deliberately misuse the personal data of others, the Department for Constitutional Affairs has announced.

The decision follows a public consultation on increasing penalties for deliberate and wilful misuse of personal data and is part of the government's strategy on data sharing to deliver better public services to individuals.

Lord Falconer, secretary of state for constitutional affairs and Lord Chancellor, says he is determined to stamp out the trade.

'People have a right to have their privacy protected from those who would deliberately misuse it and I believe the introduction of custodial penalties will be an effective deterrent to those who seek to procure or wilfully abuse personal data,' he said.

The Government has been increasingly concerned about an apparent growth in the trade in personal data. Current penalties of a fine under the Data Protection Act 1998 (DPA) have not provided a sufficiently strong deterrent. These concerns were highlighted in special reports to Parliament by the information commissioner, What Price Privacy, and What Price Privacy Now?

'Greater data-sharing within the public sector has the potential to be hugely beneficial to the public and is wholly compatible with proper respect for individuals' privacy,' said Lord Falconer. 'One of the essential ways of maintaining that compatibility is to ensure the security and integrity of personal data once it has been shared.'

Section 55 (4-8) of the DPA makes it an offence to sell or offer to sell personal data which has been (or is subsequently) obtained/ procured knowingly or recklessly without the consent of the data controller.

The Government intends to amend section 60 of the DPA to increase the penalties available to the Courts. Currently section 60 provides for:

* On summary conviction, a fine not exceeding the statutory maximum; and

* On conviction on indictment, a fine (unlimited).

To deter people from trading in personal data, the Government intends to amend section 60 of the DPA to allow for, in addition to the current fines:

* On summary conviction, up to six months imprisonment (increased to twelve months imprisonment in England and Wales when s154 of the Criminal Justice Act 2003 comes into force); and

* On conviction on indictment, up to two years imprisonment.

The Government will introduce this amendment when Parliamentary time allows.

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Further Reading:

Calls grow for crackdown on data thieves

Cost of ID fraud could reach £3.8bn in four years

Companies must wake up to ID fraud threat