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19:57 15th February 2010
Companies found guilty of serious breaches of data protection laws could be fined up to £500,000 under new guidelines by the Information Commissioner's Office (ICO).
The ICO has announced a draft code of practice for its new auditing powers, which will come into effect in April 2010.
The powers will allow the ICO to serve compulsory audit notices only to central government departments.
"But, we will, where we can make a good case, seek to extend our powers to undertake compulsory audits in the rest of the public and private sectors," added David Smith, deputy commissioner at the ICO.
In other news, more than 800 security breaches have been reported to the Information Commissioner's Office in the last two years, the watchdog has recently announced.
The ICO has also warned that organisations risk facing tougher sanctions if they do not report security breaches that later come to light.
Written by Derek Oldman
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