Three Useful Tips to Help Your UK Business Avoid Fines From the ICO

As a UK business owner, one of your main priorities is protecting your company’s bottom line. Many UK businesses worry about the Information Commissioner’s Office’s (ICO) power to impose hefty fines for data protection breaches. This is understandable in light of the ICO’s powers to fine UK organisations up to £17.5m for GDPR violations. This article will explore the circumstances in which the ICO can fine your business and three valuable ways to reduce the risk of an ICO fine.

What is the Information Commissioner’s Office?

The UK Government created the ICO as an independent body to enforce data protection rules. However, most of the media attention given to the ICO focuses on its ability to impose financial penalties of up to £17.5m on UK businesses for GDPR breaches. The ICO’s primary purpose is to educate UK businesses on how to remain GDPR compliant and avoid fines.

However, given the availability of this helpful guide, the ICO has little sympathy for UK businesses that ignore it and breach data privacy rules. Whilst the GDPR can deliver fines for any GDPR violation, the most common breaches include:

• unreasonable monitoring of individuals (including staff) on your premises;
• failure to handle a Subject Access Request within the required timescale;
• unsafe data storage leading to data theft or unauthorised use;
• failure to ensure good cyber security practices leading to an avoidable cyber-attack; and
• unauthorised disclosure of personal information to a third party.

During 2020 and 2021, the ICO handed out GDPR fines in the region of £42m to UK organisations. There is no reason to imagine a deduction in yearly penalties going forward, so it seems apt to explore three helpful ways for your business to avoid ICO fines.

1. Follow ICO Online Guidance

The ICO website provides various helpful guides on GDPR compliance. These guides aim to help UK businesses comply with essential data protection principles within the GDPR.  

The ICO website provides data protection law guidance through checklists and FAQ articles. Many focus on helping UK organisations ensure their data processing and storage methods are safe and secure.

2. Appoint a Data Protection Officer

There are two main reasons why UK businesses appoint Data Protection Officers. The first is because a Data Protection Officer (DPO) can prove helpful in complying with GDPR rules.

The second reason is due to the GDPR requiring UK organisations to appoint a DPO in any of the following circumstances:

1. the business handles ‘special categories of data’, including information relating to health, religion, sexual orientation or biometric data;
2. the organisation engages in regular monitoring of individuals, including the general public or employees; or
3. the business processes information relating to past criminal convictions.

Naturally, many businesses will be caught by the requirement for a DPO because CCTV usage can constitute regular monitoring.

Regardless of whether a DPO’s appointment is mandatory, most DPOs offer good expertise regarding GDPR compliance. For example, many UK businesses benefit from DPOs advising them on effective data storage, suitable cyber security measures and data protection best practices.

One example of a DPO minimising the risk of an ICO fine is through them carrying out a Data Protection Impact Assessment (DPIA). These risk assessments help reduce the risk of a future data breach as long as your company follows its wording.

Finally, a competent DPO can assist the ICO during any ICO investigations into your business. Providing information and acting professionally may help appease the ICO and persuade them that your organisation will do better in the future. With all this in mind, a good DPO is a worthy investment to substantially reduce your risk of ICO fines.

3. System Security and Cybersecurity Measures

One of the primary purposes of the GDPR and ICO is to encourage UK businesses to take system security seriously. It is a crucial requirement for all UK organisations to take all reasonable cybersecurity measures to protect against data theft or unauthorised access to personal information.

Whilst UK businesses need to continuously monitor and update their cybersecurity efforts, specific measures help reduce the risk of cyber attacks. These include some of the following actions:

• training staff on cyber resilience and suitable security measures;
• carrying out regular tests on your computer system (using specialist software or external cybersecurity consultants);
• using two-factor authentication on essential accounts where possible;
• ensuring immediate download and installation of software updates and patches;
• using strong passwords for critical accounts; and
• regularly backing up personal data and company information by secure means.

The ICO issue some of the largest ICO fines to UK organisations that have been victims of preventable cyberattacks. The ICO takes a dim view of UK businesses that suffer data theft due to not investing in suitable cybersecurity measures. This is why the ICO hands out financial penalties worth millions of pounds to businesses that suffer large-scale cyber attacks.

Key Takeaways

The ICO has two primary purposes: education and enforcement. However, when UK businesses fail to heed the online guidance on the ICO website, the organisation quickly reverts to enforcing the rules through financial penalties. The good news is that many UK businesses comply with GDPR requirements by obtaining legal assistance and keeping up-to-date with data protection requirements.  

If your business needs help achieving full GDPR compliance and avoiding ICO fines, our experienced Data, Privacy and IT lawyers can assist as part of our LegalVision membership.  For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.  Call us today on 0808 196 8584 or visit our membership page.  

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