Dozens of company registration agencies have set up with names like "Data Protection Registration Service", charging £95 to send information to the Information Commissioner - three times the normal rate.

The Government has been inundated with calls asking which department these firms represent, so Whitehall has ordered West Berkshire Council to be vigilant.

Senior trading standards officer John Nash said: "Most small businesses processing personal data are required to notify the Information Commissioner. However, there are exceptions for those that process personal data for limited purposes.

"In any case if you do have to register this can be done very easily with the help of the Data Protection website or telephone helpline where you will find all the advice you need. The official fee is £35."