Tuesday, 20 February 2018

Don't assume new rules will bring fee changes

Businesses that handle customer contact details will still face a registration fee despite new rules being introduced that will transform the entire data protection process.

Graham Davies, of Martin-Kaye Solicitors, in Telford, said the new General Data Protection Regulation (GDPR) guidelines would come into force in May, and businesses were already preparing for sweeping changes.

“However, some companies may not be aware that even though GDPR will replace the current Data Protection Act, they will still need to pay a registration fee to the Information Commissioner’s Office.

“Currently businesses that process personal information must register with the ICO to say they are data controllers, and they must explain what personal data they collect and how it is used, as well as paying a notification fee.

“Under GDPR, businesses won’t need to notify the ICO in the same way, but they must not assume that the fees will be dropped too.

“The fees will be set according to your company’s turnover, how many staff you have, and how much data you process – but it’s important that business owners realise the new fee regime begins on April 1st, which is well before GDPR comes in.”

Mr Davies said it would be easy to assume that as the rules were changing, then so would the fees, but that was not the case.

“If your ICO notification renewal is due before April 1st, it’s vital that you don’t ignore it, because until GDPR comes into force, you’d be committing a criminal offence if you don’t notify the ICO, and you could face a fine of up to £5,000.

“But if your renewal date is after April 1st, the ICO will contact you to tell you what you need to do to comply with the new rules. It’s crucial though that businesses get to grips with the new data protection legislation sooner rather than later, as otherwise you could face serious consequences.”

The registration fees will vary according to the set-up of each individual business – a business with fewer than 250 staff, an annual turnover under £50 million, and processing fewer than 10,000 records a year would pay an annual fee of up to £55.

But if the company processes more than 10,000 records, the annual fee increases to £80, with another £20 top-up fee per year if it also carries out electronic marketing activities.