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Marks and Spencer has been found in breach of data protection rules after the theft of a laptop containing the personal details of 26,000 employees.
The Information Commissioner's Office (ICO) said the data on the laptop, which was stolen from the home of an M&S contractor, was unencrypted.
The ICO has ordered M&S to make sure all laptop hard drives are fully encrypted by April 2008.
M&S said it would do everything it could to comply with the ICO order.