Law firm Bond Pearce has sounded a warning to retailers about the possible pitfalls of legislation on customer data, which comes into force this week.

The firm has criticised the Government for its ruling, saying it is too vague. The changes will bring UK law further into line with the EU legislation on data protection.

According to Bond Pearce, the legislation could have huge implications for retailers that already have a stockpile of customer information.

‘Any retailer that is heavily involved in collecting customer data will be at risk of contravening the new regulations,’ said Bond Pearce associate Andrew Kimble. ‘That means anyone with a loyalty scheme or anyone who uses their Web site to collect customer data for direct marketing will be at risk.’

Kimble said that the regulations on data protection are so vague that retailers will need to audit their existing data on customers, just to make sure they comply with the law. Any retailer that took compliance seriously would have to review every process it uses for capturing customer information or risk an enforcement notice from the Data Protection Commissioner (DPC).

Kimble noted that while the DPC is investigating a company for compliance with the law, the company is not allowed to use its customer data until it is deemed to be within the legal limits.

‘Retailers that fail to comply with an enforcement notice will ultimately face criminal prosecution,’ he said.

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