ICO launches crackdown as firms fail to pay new fees

ico raid1The Information Commissioner’s Office has begun formal enforcement action against 34 organisations that have failed to pay the new data protection fee, which came into force on GDPR D-Day May 25.
The data protection regulator has sent notices of its intent to fine the organisations unless they cough up. Those which do not could face a maximum fine of £4,350.
Under the new three-tier structure – unveiled earlier this year – large companies shoulder most of the burden with a 600% increase in fees to just under £3,000. For very small organisations, the fee is £35 as long as they pay by direct debit, while SMEs pay £60.
All organisations that process personal data must pay a fee to the ICO unless they are exempt. The money is used to fund the ICO’s data protection work and new and expanded services it has introduced such as the advice line, more online resources and new guidance as strengthened data protection laws have come into force.
ICO deputy chief executive Paul Arnold said: ”We expect the notices we have issued to serve as a final demand to organisations and that they will pay before we proceed to a fine. But we will not hesitate to use our powers if necessary.
“All organisations that are required to pay the data protection fee must prioritise payment or risk getting a formal letter from us outlining enforcement action.”
The 34 notices of intent were sent earlier this month to a range of organisations across both the public and private sector including the NHS, recruitment, finance, government and accounting. The ICO said that more notices are in the drafting stage and will be issued soon.
Organisations have 21 days to respond to the notices. If they pay, action will stop. Those that ignore the notices or refuse to pay may face a fine ranging from £400 to £4,000 depending on the size and turnover of the organisation. Aggravating factors may lead to an increase in the fine up to a maximum of £4,350.
The data protection fee is set by Government which has a statutory duty to ensure the ICO is adequately funded, and is part of the Data Protection (Charges and Information) Regulations 2018. It came into force on May 25 to coincide in line with GDPR.
The money helps fund the ICO’s work to uphold information rights such as investigations into data breaches and complaints, our popular advice line, and guidance and resources for organisations to help them understand and comply with their data protection obligations. The ICO has grown over the last two years – now employing around 670 staff.
Organisations that have a current registration (or notification) under the 1998 Act – prior to May 25 2018 – do not have to pay the new fee until that registration has expired.

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