Smart Data: Putting consumers in control of their data and enabling innovation - Which? response

Summary:

• Smart Data has the potential to deliver benefits for consumers and we welcome the publication of this review. Consumer considerations, underpinned by transparency, must be central to the design of Smart Data initiatives.
• The effectiveness of proposed Smart Data initiatives will require robust consumer testing to provide an understanding of current behaviours and barriers to engagement and consumer’s concerns in relation to their uptake.  
• Our own research into barriers to engagement in the broadband sector has shown that a range of factors can limit consumer engagement. The introduction of Open Communications has the potential to overcome some of the barriers we have identified, such as the belief that changing broadband package could result in higher costs than anticipated. However there will be limitations to this and Open Communications will be one part of a suite of measures needed. 
• We agree with the need for coordination across different sectors to allow sharing of expertise and learning between initiatives, and to provide clear governance of Smart Data. However there is not sufficient detail on how the proposed Smart Data Function will sit as part of the broader institutional framework for us to assess if it is the right body to facilitate this cross-sector approach. 
• There needs to be clarity on what sectors would sit within the scope of the proposed Smart Data Function, how it will function alongside existing bodies such as The Open Banking Implementation Entity (OBIE), what its relationship with sector regulators will be, and how it might operate alongside the proposed Digital Markets Unit. Before creating any new body there must be certainty of the broader governance framework that it is proposed to be a part of. 
• Transparency must sit at the heart of Smart Data. This should be incorporated at every step of the consumer journey, from clear consenting processes upfront, robust protection of consumer’s data throughout, and appropriate redress which is swift and easy for consumers to obtain when things go wrong.
• Our research to better understand people’s attitudes and behaviours in relation to data collection and use found that vulnerable consumers are more concerned than the rest of the population about the impact that the sharing of their data could have. Both the design of Smart Data initiatives and communications activity must take account of these concerns. How this will be done in practice would benefit from further consultation with relevant stakeholders.