A Hove accountant has warned businesses to be on their guard against a misleading letter about the Data Protection Act (DPA).

The letter offers to register businesses under the DPA for £117.50 when the annual fee for completing the notification procedure is only £35.

Radical changes to the DPA require most businesses to inform the Information Commissioner about the way they process personal data.

Failure to do so is a criminal offence carrying a fine of up to £5,000.

Richard Simmons, a partner at the Hove office of Hacker Young, said:

"Most business people see the DPA as a rather daunting and unnecessary piece of extra bureaucracy.

"The attraction of these letters is they lead you to believe that by paying a one-off charge you will solve the problem. They imply once you've completed the notification you'll be fully complying with the Act. That is not the case."

Mr Simmons advises anyone who receives such a letter to contact the Information Commissioner's office.

He said: "While most businesses are required to notify the commissioner about the information they retain, they must also comply with eight data protection principles.

"They may need to seek advice from a professional with detailed knowledge of this particularly complicated area of law. Often it's necessary to conduct a data protection audit to establish the type of data being retained and how it is held, processed and disposed of.

"What is totally unacceptable is these organisations making a profit of about £80 on each respondent and leaving a trail of unsuspecting businesses clinging to the mistaken belief they have secured compliance under the Act.

This is a rip-off."