Small businesses have been warned they could face £5,000 fines under tough new laws against 'junk faxes'.

Pudsey-based lawyers John Howe and Co said firms should take special care before launching marketing campaigns using a fax.

John Howe, a partner at the firm, said law changes sparked by the European Union inspired Data Protection Act, meant it was now illegal to send unsolicited direct marketing faxes to individuals who had not consented to receiving them.

He added companies were also no-go areas if they had registered not to receive unsolicited faxes with the Fax Preference Service. Although a list of registered firms is available, copies cost £500 and are only updated every three months.

Mr Howe said: "While this is great news when it comes to preventing unwanted junk fax mail that nobody reads, it will also hamper small businesses in their marketing activities".