A EURO MP is warning businesses in South Cheshire to be vigilant against a scam to defraud money.

Chris Davies (pictured) says that official-looking letters are being sent to companies and traders claiming that they need to register under the Data Protection Act. They insist that a fee of £135 must be paid immediately to avoid further action.

But the Liberal Democrat MEP has denounced the letters as a con intended to trick people unsure of their obligations under the legislation.

Although changes to the data protection law means that some businesses have to register with the Information Commissioner it is not necessary in most cases. The fee for those that do is £35 annually.

Mr Davies said: 'The organisations involved are not breaking the law if they pass on the data to the Information Commissioner, but the amount demanded is unjustified.'

In reality businesses can register simply by logging on to the Information Commissioner computer website, down-loading a form and sending it off with the £35 flat fee.

Mr Davies commented: 'It's a clever ruse that can easily catch out the unaware and make £100 a time for the con artist.'

The Information Commissioner is based at Wycliffe House, Water Lane, Wilmslow. His website is www.informationcommissioner.gov.uk. There is also a notification helpline which is 01625 545740.