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As a sole trader in the UK, our data protection rules apply to your business, no matter its size. Most sole trader businesses cannot afford to ignore the General Data Protection Regulation (GDPR), considering that the Information Commissioner’s Office (ICO) may hand down fines of up to £17.5m for non-compliance. This article will consider the ICO’s expectations regarding sole traders and their powers to punish businesses that breach GDPR rules.
Why Does the ICO Exist?
The UK Government created the ICO for several reasons. One of those reasons includes providing GDPR and data protection act guidance on their website. In this way, the ICO aims to assist all businesses, whether micro organisations or giant corporations, in fully complying with GDPR rules.
Another reason for the ICO’s existence is to act as a referee upon any suspected data protection law violation. The ICO regularly conducts formal investigations with UK organisations to determine whether a serious breach of data protection rules has occurred.
The ICO has various powers upon concluding that a GDPR violation has occurred. Accordingly, the ICO is empowered to enforce the GDPR.
Naturally, most sole traders are most concerned with the ICO’s powers to issue them with a fine large enough to put them out of business.
Can the ICO Be Helpful to My Sole Trader Business?
Thankfully, the ICO aims to help your sole trader business by providing easy-to-understand and comprehensive guidance on GDPR rules on its website. The ICO’s online guidance is free to read and download and aims to assist UK businesses.
Overall, your sole trader business will have to demonstrate that it:
- obtains personal information for lawful reasons;
- stores people’s data safely and securely;
- protects computer systems containing personal information against cyber threats;
- provides copies of personal data to individuals upon reasonable request (known as a Subject Access Request); and
- deletes personal information when no longer necessary.
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Does the ICO Investigate Sole Traders?
The ICO investigates all UK organisations that handle personal data. This includes sole trader businesses due to their handling of individuals’ personal information when conducting their business.
Some common scenarios in which sole traders could face an ICO investigation include the following:
- obtaining personal information for no lawful reason;
- providing personal data to third parties without the individual’s consent;
- ignoring a Subject Access Request (SAR) from an individual; and
- suffering theft of personal data through a potentially avoidable cyberattack.
So, a GDPR breach at a sole trader with ten customers will likely result in a lesser fine than a data protection violation affecting 100 individuals. This is because the ICO tend to decide their financial penalty figures by reference to the harm caused to the public.
How Much Could the ICO Fine My Sole Trader Business?
The ICO could technically fine your sole trader business up to £17.5m. However, in reality, fines in the millions are usually reserved for massive data breaches affecting thousands of customers.
Therefore, a sole trader business with less than 100 customers is likely to face financial penalties in the thousands of pounds rather than millions. However, this could still be a significant sum to many sole traders, particularly within challenging economic conditions.
Key Takeaways
The ICO aims to assist sole traders in complying with the GDPR through its detailed online guidance. However, the ICO has the power to hand down financial penalties to sole traders and individuals who fail to comply with GDPR rules. Consequently, it is best practice for sole traders to obtain specialist legal documentation regarding data protection for their business.
If you need help ensuring your sole trader business remains GDPR compliant, 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.
Frequently Asked Questions
The UK Government has embraced the GDPR and prioritises data security and privacy. As such, the GDPR will remain in force until Parliament votes to repeal it.
No, the ICO will fine any sole trader who has committed a serious breach of the GDPR. Because of this, a sole trader should stress any mitigating factors rather than simply pleading for their sole trader status.
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