Companies risk fines over new UK data rules

Most British companies have failed to prepare for new data protection rules due to come into force next month amid fears the measures will make it much harder for websites to secure commercially valuable information about their users.

About 95 per cent of UK companies have yet to comply with the regulations, which require websites to get permission from consumers to use the tracking “cookies” that monitor people’s internet habits, according to KPMG, the consultancy. Companies risk fines of up to £500,000 if they fail to fall into line with the rules but critics say compliance could put some e-commerce websites out of business. The law, which stems from a European Union directive, was supposed to come into effect in Britain last May, but confusion over the measures led to companies being given an extra year to comply.