Internet firms conforming to privacy protection rules

Two-thirds of dot-com start-ups are taking steps to comply with new data protection laws, according to a poll carried out by City firm Paisner & Co.The poll, conducted among Internet entrepreneurs taking part in The Chemistry, the firm's investment matchmaking group, indicated that 68.5% of respondents display aprivacy policy on their Web sites, explaining how personal data is used.A clearly displayed privacy policy is a key requirement of the Data Protection Act, which came into force on 1 March 2000.The firm said the finding is a sign of a growing awareness of the importance of the privacy law in the UK.

A survey in the US last month showed that 40 of the 100 busiest US Web sites do not have a privacy policy.Eduardo Ustaran, a data protection specialist at Paisners, said: 'E-businesses are realising that a privacy policy is not just a marketing gimmick but a responsible way of addressing a legal obligation.'E-commerce partner Adam Rose added: 'With consumers still wary about buying goods over the Internet, being open about the way customers' data is used, by means of a privacy policy, is a crucial step to take.'

Neil Rose