Warning on data register SMALL firms are falling victim to a scheme where they pay three times the price to notify, or register, under the Data Protection Act.

They are paying this even when they may not have to, warned the Essex Chambers of Commerce.

It has been reported that an official-looking letter arrives telling businesses they have not yet notified under the Data Protection Act which, in some exceptions, they must do if they have any personal data on computers.

The letters warn that anyone failing to comply could be committing a criminal offence and face a large fine.

Included is a detailed form to complete which the business is asked to send off with a payment of up to £95 plus VAT as a notification fee.

But though the forms look official, they are not from any Government department, said the chamber.

In fact, notifying under the Data Protection Act costs only £35, and no VAT is charged.

For further advice, contact the Information Commissioner's Office hot-line on 0870 902 7522; also see www.dpr.gov.uk and www.doineedtonotify.co.uk.

Any firms that are approached by the bogus firms should contact the local Trading Standards Office on 01245 341800.