Why Does My UK Business Have to Take Data Protection Law So Seriously?

As a UK business owner, one of your key responsibilities is to ensure your company complies with UK data protection law. The UK Government set up the Information Commissioner’s Office (ICO) to motivate UK businesses to comply with the General Data Protection Regulation (GDPR) and Data Protection Act. Many business owners are already familiar with the ICO’s ability to award a maximum fine of £17.5m for GDPR violations. This article will explore why UK businesses should take data protection law seriously. The various reasons provided should provide a helpful summary of how GDPR violations can harm your business.

Main Data Protection Laws in the UK

Alongside the Data Protection Act, the General Data Protection Regulation (GDPR) sets out the main data protection rules in the UK.   

The ICO aims to ensure that UK businesses take the GDPR seriously. It does so in two key ways: 

• providing online guidance on its website to help companies comply with GDPR rules; and 
• regularly enforcing financial penalties against UK businesses for GDPR breaches.

Let us explore four potential negative consequences to your business upon any breach of GDPR rules below.

1. ICO Investigation

Before considering whether to impose a fine, the ICO must formally investigate the alleged GDPR violation. However, investigations can be a time-consuming and stressful process for business owners.

These steps can rob your business of time and focus at a time when you would prefer it to focus on expansion and profit. In this way, even suffering through an ICO investigation can be a disadvantage compared to rival companies that are not doing so.

2. ICO Fines

The ICO can award substantial fines following any formal investigation in which they find a UK organisation has failed to comply with the GDPR.

Nevertheless, the ICO has fined UK organisations tens of millions of pounds for failing to comply with these requirements. 

3. Negative Publicity and Reputational Damage

As a business owner, you are likely aware that reputational damage can sometimes cause more damage long-term than any actual fine.

The ICO is also aware of this and publishes decisions on its website. Accordingly, any business that the ICO determines is in breach of data privacy law will likely face further detriment through online reporting of their GDPR violation.

UK consumers tend to avoid organisations that attract media attention for misuse of personal data for obvious reasons. No individual wants to provide their sensitive personal information to a company that may fail to protect it from unauthorised users. 

4. Increased Susceptibility to Cyber Attacks

One of the primary purposes of the GDPR is to help businesses carry out data processing and storage securely and safely. Doing so helps reduce the risk and potential damage within any attempted cyber-attack on a UK business.

In this way, any UK company fully complying with the GDPR reduces its susceptibility to cyber-attacks and, even in the event of intrusion, offers less information for data theft.

Key Takeaways

Business owners must prioritise data protection compliance efforts in light of the severe disadvantages that can follow an ICO investigation. Accordingly, many businesses obtain expert legal assistance with data protection documentation and decision-making. In addition, implementing preventative steps is sensible, given that the ICO aims to make it much cheaper to comply with the UK GDPR than breach it.

If you need help ensuring your business is fully compliant with GDPR rules, 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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