Voluntary groups in Keighley are being tricked into paying up to £100 to register under the Data Protection Act.

Businesses have already been targeted by firms whose literature makes them appear to be government data watchdogs.

Trading Standards has branded the firms as "unnecessary middlemen" because direct registration with the Data Protection Registrar costs only £35.

Keighley Town Council this week issued its own warning about the firms' methods after receiving complaints from businesses.

Keighley Voluntary Services and Keighley Volunteer Bureau also received letters this month from the Crown Data Collection Enforcement Agency.

The agency issues official-looking questionnaires and uses notepaper headed by two crown logos.

Recipients are told that they are not held on Crown's records as having registered under the Data Protection Act 1998.

The letter states: "Failure to comply with the Data Protection Registrar constitutes a criminal offence liable to a large fine.

"To avoid further action please return your forms immediately.

"You will be obliged to comply with the legally enforceable data protection principles, and develop your own codes of practice."

Crown charges £95 for registration, "helpful documentation for developing codes of practice" and 12 months of legal updates.

Crown does not tell recipients that anyone can register directly with the Data Protection Registrar for just £35.

Free advice and information is available by phone, letter or on the registrar's web site.

Nick Lajszczuk, Keighley's deputy mayor, accepts that businesses are required to comply with data protection legislation.

But he said: "I believe the letters are misleading and some may forward payment to this firm believing they are a government agency.

"I feel the public may be being conned into thinking that this is a government department."

Gary Pedley, of Keighley Volunteer Bureau, said the letter he received last week from Crown looked official.

He said: "My concern is that local groups are going to get scammed. Some have already sent their money off and taken the bait."

Graham Hebblewaite, West Yorkshire's Trading Standards chief, said he had received hundreds of complaints about firms carrying out the practice.

He said: "Action is being taken against a number of them, but there are copycat organisations cropping up following the same line.

"They are unnecessary middlemen. You have to pay three times as much and we believe the trading practices are misleading.

"It's scandalous that people can do this. They're preying on small businesses that can least afford this."

Crown Data Collection was unavailable for comment this week despite numerous attempts to contact the firm.

The Government's Office of Fair Trading has confirmed it is considering complaints against 16 data protection firms, including Crown.

It has also obtained injunctions against two other firms and negotiated changes in the advertising by two others.