TRADING standards chiefs are urging businesses to be wary of companies asking for money in an alleged data protection scam.

City of York Council officers are warning anyone who has received details from companies wanting payment for registration under the Data Protection Act 1998.

A number of firms in York and North Yorkshire have received official-looking documents giving them "final notice" to register with the Office of the Information Commissioner.

The letters, in each case, demand payment of £95 plus VAT. The form also warns that "failure to register is a criminal offence" punishable with a maximum £5,000 fine.

Elizabeth Levett, the council's trading standards manager, said: "These official looking documents do not originate from the Office of the Information Commissioner.

"Instead they have been sent by private firms who are not entitled to demand money and do not act in an official capacity." Businesses which process personal information about individuals are obliged to register themselves with the Information Commissioner, subject to a number of exemptions, but they do not have to do so through private companies.

Ms Levett said: "If a business is required to register with the Office of the Information Commissioner, this can be done directly.

"There is no need to go through a third party and the current fee for registration is £35.

"If you have already registered, there is no need to do anything more."

Local businesses who want to find out if they need to be registered should phone the Office of the Information Commissioner on 01625 545700 or log on to www.dpr.gov.uk

Anyone who has received a mailshot should phone York trading standards on 01904 551562.

Updated: 10:46 Saturday, April 26, 2003