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Data protection rules could cost firms ÂŁ75k a year New legislation aimed protecting data being discussed by Europe's Justice and Home Affairs ministers could potentially place a greater financial strain on smaller firms, the Federation of Small Businesses (FSB) has argued. In conjunction with the British Bankers' Association, the body has criticised the proposals, claiming they could mean that small firms holding the details or over 5,000 customers will have to employ a data protection officer.
The new role could cost companies around ÂŁ64,000 a year, while they could also be forced to cough up another ÂŁ11,200 every 12 months in order to conduct a data protection impact assessment and carry out a compliance review every two years. Research from the FSB found that data protection is already a hot topic with many firms, with around one in five (19 per cent) claiming that it is one of the most burdensome regulations to comply with.
And some analysts claim that the introduction of these latest measures could see smaller businesses show greater reluctance to harbour expansion plans. John Allan, National Chairman, Federation of Small Businesses, said:"If you are a small business with 4,500 customers on your mailing list you might reconsider plans to grow your business for fear of having to spend over ÂŁ75,000 each year in order to comply with data protection regulations. We urge European leaders not to press forward with this law in its current form as small businesses would clearly suffer.
He added that European leaders should look to the findings of the prime minister's business-led taskforce report into EU regulation, which called on lawmakers to think of the impact on the smallest companies when drawing up new laws. Since the 1995 EU Data Protection Directive, there have been a number of new technological developments, with one of most obvious being the surge in use of personal computers and handheld devices, which in turn has led to a rapid and significant expansion of the internet.
The EU Commission argues that the law needs to therefore reflect these changes in order to provide greater harmony between member states. Storetec News/Blogs “http://www.storetec.net/news-blog/dataprotection-rules-could-cost-firms-75k-a-year”. Data protection rules could cost firms £75k a year. December 9, 2013. Storetec.
New legislation aimed protecting data being discussed by Europe's Justice and Home Affairs ministers could potentially place a greater finan...