BUSINESSES in County Durham are being warned not to be taken in by a data protection scam being run by companies out to make a fast profit.

Durham County Council trading standards officers are urging firms to be wary of letters demanding £100 to comply with new legislation when the official charge under the Data Protection Act is only £35.

"Recent amendments to data protection legislation are now in force and it appears that as many as 15 companies are taking the opportunity to profit at a time of uncertainty for some businesses,'' said Phillip Holman, the county council's head of trading standards.

He said: "We have received more than 200 inquiries about such organisations and we are investigating a number of incidences where businesses have received mailings from companies offering registration services.

"Where the documents are misleading we are liaising closely with the Office of Fair Trading (OFT), which is dealing with the matter.''

The OFT has obtained High Court injunctions against four defendants to stop them issuing misleading advertisements for data protection notification services.

Many small companies which process data for limited purposes may be exempt, but if registration is required, an application can be made direct to the Office for the Information Commissioner for a fee of £35.

Councillor Don Ross, deputy leader of the county council, said: "Companies should be vigilant about unexpected invoices or demands and should make all possible inquiries before making payment.''

Anyone wanting further information is asked to contact 0191- 383 3589.

Anyone requiring registration information is asked to contact (01625) 545740