Newsroom

Misleading ads for data protection services halted

PN 77/02     19 November 2002

Following action by the OFT, the High Court has granted a final injunction against two defendants to stop them issuing misleading advertising for data protection notification services.

At a hearing the judge granted the injunction against DPARS Ltd of Manchester and Gary McNeish (both trading as Data Protection Act Registration Service) upon being satisfied that the adverts were misleading. Both the company and Mr McNeish had consented to the injunction being granted. An interim injunction order had previously been made in June 2002.

The OFT considered that the advertising was misleading because it gave the impression that it came from an official body and that the businesses receiving it were under some sort of legal obligation to register with the company immediately at a cost of £85. It also failed properly to explain which persons were exempt from notification.

While most businesses processing personal data are required by law to notify the Information Commissioner, many small businesses that process such data for limited purposes are exempt from notification. Businesses can notify the Information Commissioner directly for a fee of only £35.

John Vickers, Director General of Fair Trading said:

'It is good for business that the misleading mailings of these advertisers have been stopped. We will continue to crack down on advertisers who make false and misleading claims.'

NOTES

1. The final injunction was granted on 12 November 2002. An interim injunction was granted on 25 June 2002 as a temporary measure (PN 39/02).

2. The Advertising Standards Authority adjudicated against Data Protection Act Registration Service on 26 September 2001. The full adjudication is available at www.asa.org.uk.

3. The OFT took court action in separate proceedings against Data Protection Agency Services Ltd of Southport (also trading as Data Collection Enforcement Agency) and their director Michael Sullivan for similar misleading advertising. A final injunction was granted on 30 May 2002 (PN 35/02). The OFT has also obtained assurances from two sole traders, Chris Yewdall of Baguley, Manchester, and Finbar Fox of Lytham St Anne's, Lancashire — both trading separately under the name Data Protection Agency — that they will no longer issue their misleading advertisiements.

4. The Control of Misleading Advertisements Regulations (CMARs) 1998 came into force in June 1988 implementing an EC Directive on misleading advertising. The role of the OFT under the Regulations is to support and reinforce existing controls, not to replace them. The Regulations give the OFT the power to step in if the public interest requires that misleading advertisements should be stopped by means of a court injunction.

5. The OFT can act only when a complaint has been received. To come within its scope an advertisement must be misleading (i.e. it must deceive or be likely to deceive and affect economic behaviour) and be published in connection with a trade, business, craft or profession to promote the supply or transfer of goods or services, immovable property, rights or obligations.

6. Details of whether you are required to notify under the Data Protection Act 1988 are available on the Information Commissioner's website at www.dpr.gov.uk or telephone the Notification helpline on 01625 545740.

7. In this press release the functions of the Director General of Fair Trading (DGFT) under the Regulations are for simplicity described as the functions of 'the OFT'. The Enterprise Act will replace the office of the DGFT with the OFT, to which the DGFT's functions will be transferred.

Back to:2002