Data Protection: What Price Security?

Catrin Huckle, Commerce & Technology Group, Lawrence Graham LLP

Legal philosopher John Austin took the view that a law was only valid to the extent that it was backed up by the threat of sanction; the theory being that we all need an incentive to comply with the laws which are imposed upon us. In the commercial world this theory can hold a great deal of sway: why go to the trouble and expense of complying with some of the more bureaucratic laws if there is no penalty for not doing so?

Against this backdrop it is unsurprising that the Information Commissioner takes very seriously the frequently levelled criticism that he has no real ‘teeth’ when it comes to enforcing the Data Protection Act 1998 (DPA). The Commissioner's riposte invariably relies on the observation that formal action can still be to the severe detriment of a company's reputation, and there can be little doubt that this is a serious consideration in the business community.