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Gloucestershire Business News

'High-profile charities' fines signal urgent need for change'

Fines of between £6,000 and £18,000 issued to 11 well-known charities have highlighted the need for an urgent review of practices surrounding the use of data, a charity law expert has warned.

Mark Lewis, a partner at Gloucestershire-based law firm Lodders, said charities including Oxfam, Cancer Research UK, The Royal British Legion and Battersea Dogs' and Cats' Home, had been issued monetary penalties for contravening data protection laws.

"This represents an important, significant step by the Information Commissioner's Office (ICO) to review and regulate data protection practices across the not-for-profit sector," said Mr Lewis (pictured).

"In light of the incoming General Data Protection Regulation, set to be implemented in May 2018, charities and other commercial organisations must review and adapt their practices to comply with the new requirements."

The ICO ordered that the 11 charities pay the fines following an investigation into alleged pressure on donors to make follow-up donations, which formed part of a broader investigation into the way in which charities handle personal information.

Mr Lewis said: "One method that was used by seven of these charities was the principle of profiling their donors based on their wealth.

"To do this, they hire the services of independent companies to scrutinise an individual's lifestyle - including their income, assets and even social interests - with the aim of pinpointing those they believe to be the wealthiest.

"They can also determine which individuals are most likely to leave a legacy in their wills, giving them a selection of people to target in their marketing campaigns.

"Clearly, this is a serious contravention of the Data Protection Act as not only do the donors not consent to this practice, they remain oblivious to the fact that it occurs."

The investigation also revealed several other offences including the use of multiple sources to collect and 'piece together' personal information, as well as sharing this data with other charities without seeking individuals' permission beforehand.

Mr Lewis said: "Since the ICO's announcement, a number of the charities have responded in defence of their data practices and assured donors and supporters that their data is handled with great care, something which has been publicly called for by Lord Grade, chair of the Fundraising Regulator board.

"At a time where the protection of personal data is becoming increasingly scrutinised, it is vital that charities can be clear on the regulations that are in place and are able to fully comply with them.

"Regulators are working alongside charitable organisations to improve how personal data is used across the sector and as established by these fines and the reviews which are taking place they are willing to take appropriate action to ensure the protection of donors' and supporters' information."

Lodders is a premier law firm in Cheltenham, the North Cotswolds, Gloucestershire and Warwickshire.

For more information, visit www.lodders.co.uk.

What do you think? Email mark@moosemarketingandpr.co.uk 

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