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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3666
Experience:  Solicitors 2 years plus PQE
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Hi, I am about to start a business service where companies

Resolved Question:

Hi, I am about to start a business service where companies share their customer and supplier payment term data and I compare it with my database. So if the share the fact that X Limited is on a 60 day payment term, I match it and report back the best and worst terms available of X Limited. I do not intend to reveal the data source or any other information other than the company/trading name of the supplier/customer and the corresponding payment terms for that company/trading name. Assuming that the companies involved have given permission for their data to be used am I potentially in breach of any law?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi,

Thank you for your question and welcome. My name is ***** ***** I will assist you.

Alex J. :

You will not be breaching the Data Protection Act 1998 as long as you are not using personal data.

Alex J. :

That is data that can be used to identify a private individual

Alex J. :

Simply storing information as to the credit worthiness of a company and making it available to your clients will not in itself breach any laws.

Alex J. :

I would only be careful about publishing the information for the whole world to see in case it is deemed defamatory in anyway due to inaccuracies in the information.

Alex J. :

Will your customers pay you for the service? How will they pay you? I look forward to hearing from you. Kind regards AJ

Customer:

Any information published will only be sent to an individual paying customer. Information is about companies only. Companies will pay a variable fee depending on the number of matches found. In addition clients will be asked if it is okay to add the data that they supply to the database. If yes they will get a price discount. If not the data will be discarded after the specific enquiry is completed

Customer:

I will also ask each customer to sign a disclaimer to ensure that I have evidence that I have been given the data for the purpose of the comparison and that (optional) they have permitted me to add their data to the database in exchange for a discount. I'm guessing that makes it all water-tight. Would that be a coorect assumption or is there something I have missed?

Alex J. :

Hi thank you

Alex J. :

This is essentially a data cleansing service - you are searching various data sources available to you and then providing that information to one customer subject to their instructions?

Alex J. :

I think the disclaimer should just say that the data is for informative purposes only and you provide "no warranty as to the applicability or veracity of the data for any intended end use by the customer".

Alex J. :

You should also say that you will not be liable for any "indirect or consequential loss or loss of profit as a result of any use of your services" and your entire liability to the customer is limited to repaying any fee they have paid you for the service.

Alex J. :

I would also make clear that you will not process any personal data in accordance with the Data Protection Act.

Customer:

Many thanks

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