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Severe penalties predicted for firms' misuse of personal data

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Companies ignoring data privacy laws will be 'shocked' when they come into force, they were warned yesterday.

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Implementation of the legislation, signed into law by Governor Chris Patten in August, has been delayed while the Government seeks a privacy commissioner, to help enforce new consumer rights.

The extra time businesses had been given to prepare was being wasted, according to Lisa Skoog de Lamas, vice-president of government affairs and business development for American Express, which she said had experience of this type of legislation from elsewhere in the world.

Principal assistant secretary for Home Affairs Robin McLeish said there had been a 'mixed' response from companies over the laws but government departments were taking them seriously.

Mr McLeish admitted that instead of being implemented in the middle of this year as he had hoped, even the third quarter would now be 'optimistic'.

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The legislation might not even be in force this year.

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