Proceedings were issued against Data Protection Agency Services Ltd of Southport (also trading as Data Collection Enforcement Agency) and its director, Michael Sullivan, to prevent them from continuing to issue misleading advertising. At a hearing the judge granted the injunction after finding that the ads were materially misleading.
The advertising gave the impression that it came from an official body and that the businesses receiving it were under a legal obligation to register with the company immediately at a cost of about £95 plus VAT.
While most businesses processing personal data are required by law to notify the Information Commissioner, the fee is only £35 - on which no VAT is payable. Many small businesses that process personal data for limited purposes are not required to notify. Businesses can notify the Information Commissioner directly.
The action was brought under the Control of Misleading Advertisements Regulations which came into force on 20th June 1988, implementing an EU Directive on misleading advertising. They give the OFT the power to step in if the public interest requires that advertisements complained of should be stopped by means of a court injunction. However, the OFT can act only when a complaint has been received.