The Government is upping the ante to get companies to release data gathered on their customers – through its Midata scheme – by threatening to bring in legislation within two years if they do not comply.
The move follows a consultation on the scheme, which already has the backing of the DMA, whether to make it a legal requirement that firms hand over their data.
Under existing data laws consumers already have the right to make a “subject access request” to see the personal information companies and other organisations hold on them.
But this is not only time consuming, it often incurs a fee of up to £10 and not all data has to be provided. The Midata plan, first revealed in April last year, is designed to make this process easier, although critics claim it could be leave consumers wide open to abuse.
Consumer Affairs Minister Jo Swinson is due to outline more details today (November 19).
Ahead of the announcement she said: “Many businesses reap huge commercial benefits from the information they gather from consumers’ daily spending patterns.Why shouldn’t consumers also benefit from this by having access to their own data to enable them to make better choices?”
And executive director of consumer group Which? Richard Lloyd said: “Giving consumers more power with their personal data will help them make better use of their money, and that’s not only good for customer-friendly businesses, but good for growth in the economy.”
The Department for Business, Innovation and Skills says 20 businesses in the energy, finance and telecoms sectors have already signed up to the voluntary scheme. But it is holding out the threat of legislation should insufficient numbers of companies comply.
The department said new powers could come into force by early 2014.
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