UK Web Hosting
Data Protection
Operators of any website which requires personal information to be stored, such as names and addresses of customers, have certain obligations under the Data Protection Act 1998.
One of the principles of the act involves transferring data abroad:
Data should not be transferred to a country or territory outside the European Economic Area unless that country or territory ensures an adequate level of protection for the rights and freedoms of data subjects in relation to the processing of personal data.
Unless you are absolutely certain that a non-EEA based web host is subject to the correct level of data protection legislation, you should avoid hosting your site with them.
Data Protection is a hot topic at present and with the continuing rise of internet usage, more and more cases surrounding data protection are likely to be brought to court.
Do you really want to be involved in a nasty legal case because of a lack of foresight when choosing a host?
*If in doubt with legal matters, always consult a lawyer.