The Data Protection Act requires all businesses that handle personal information to comply with regulations regarding its collection, storage, use and security. Failure to do so could result in legal action and fines. The key requirements include safely storing identifiable individual data, only using it for its intended purpose, allowing individuals access to their data within 40 days of request, keeping it accurate and up to date, and not retaining it longer than necessary. Businesses must also implement security practices like passwords, encryption, access controls and shredding to protect personal information.