The Department for Science, Innovation and Technology has issued a call for evidence about how to introduce a Smart Data scheme in digital markets, using new powers under the Data (Use and Access) Act 2025.
The Act establishes two relevant powers. The first concerns customer data, allowing regulations to require traders to securely provide, at a customer’s request, their data to an authorised third party. The second allows regulations to require traders to publish or provide business data.
The government is seeking views on how new powers in the Act could be used to promote innovation, competition and better outcomes for businesses and consumers. Smart Data enables secure, consent-based sharing of customer data with authorised third parties. It can facilitate the creation of services which help consumers and competition.
The government says that digital markets are integral in how individuals and businesses access goods, services and content online. However, challenges such as barriers to data portability, limited consumer control, and market concentration can reduce competition and create obstacles to innovation.
The Data (Use and Access) Bill received Royal Assent in June 2025 and establishes regulation-making powers to allow government to set up Smart Data Schemes. The call for evidence is aimed at helping the government assess whether to take action in this area and ensuring that any scheme introduced is proportionate, based on evidence and provides a meaningful impact.
