Which? response to the Department of Business, Innovation, Science and Trade's Smart Data: multi-sector call for evidence

Which? welcomes the opportunity to respond to this call for evidence on cross-sector smart data schemes and provide a consumer perspective on use cases, scheme design, and cross-economy alignment. We see the emergence of smart data schemes, both cross-sector and sector-specific, as incredibly beneficial to consumers. If deployed well, smart data will enable consumers to share their information with businesses and organisations, creating opportunities that benefit individuals, society, and the economy. In turn, it could improve switching rates, provide more personalised experiences, and help consumers access more customised and relevant deals. 

However, these benefits depend on consumer trust in smart data. Consumer adoption relies on confidence in the products, and without consumer protection principles built into all trust frameworks, consumers may be put at risk. We argue protections should include: 

• Governance: Clear roles and responsibilities, transparent oversight, robust liability rules, the monitoring of consumer outcomes and accessible dispute resolution to maintain consumer confidence.
• Data Management: Uncompromising cybersecurity, strict data minimisation, and privacy standards to ensure fundamental consumer rights are never diluted.  
• Interoperability: Inclusive-by-design requirements, standardised operational definitions, and common plain language to ensure all consumers, including vulnerable users, can safely navigate smart data services.
• Scheme must address the needs of vulnerable consumers.
• The Department for Business, Innovation, Science and Trade should take a coordinating role in the development of smart data. 

In our 2024 paper, ‘Building consumer trust in Smart Data’, we highlighted that all schemes must include these core principles to protect consumers from key risks, namely poor quality products, lack of meaningful consent, risks to consumer safety, and the exploitation of vulnerable groups. Without addressing these risks, consumer trust will wane, limiting participation and diminishing the potential benefits of smart data across sectors.

Some key aspects of our response include: 

• Sector-specific schemes: embedding trust framework principles across sector-specific schemes in the trade, retail, and property sectors is essential.
• Governance and International: consumer protection principles require consistent application across all smart data schemes, and the Department for Business, Innovation, Science and Trade must, using the Smart Data Guidebook [pg.15] and other mechanisms, provide accountability and oversight of smart data scheme providers.
• Smart Data Scheme in Telecoms: we question why the telecoms sector is not included in this call for evidence, given that it is an important and essential sector for UK consumers.