Member Article

Government sets out next steps for ‘midata’

Businesses could be made to provide consumers with greater access to data created through their household utility use, banking, internet transactions and high street loyalty cards.

The Government’s ‘midata’ partnership with consumer groups and major businesses, is aimed at allowing access to personal data, which it says “open up a wealth of opportunities for consumers and businesses.”

Consumer Minister, Norman Lamb said: “midata will allow consumers greater insight into their everyday consumption and lifestyle habits by using applications and intermediaries to analyse their actual behaviours and thereby empower them to make better spending choices and secure the best deals.

“This will boost competition between companies in terms of value and service, and stimulate innovation in new data management tools and systems.

“We want the UK to be at the forefront of the data analytics and information services market that is rapidly growing with huge international potential. However, it’s crucial that we engage with business and consumers to ensure that we do this in the right way.”

Since launching in November 2011, 26 organisations have signed up to the “vision for midata”; agreeing core principles about data release, publishing research into customer attitudes and beginning work into privacy and security.

The consultation explores the option of taking an order-making power to ensure government has the flexibility to act if the voluntary approach proves too slow.

The Government suggest individuals will be able to use data to gain insights into their own behavior and make more informed choices about purchases.

Chris Combemale, executive director of the Direct Marketing Association (DMA) said: “We welcome BIS’s progress in pushing forward the midata programme. Companies must now take the initiative to be open and transparent with consumers about the information they hold and how they use it.

“According to research conducted by the DMA, 85% of consumers would prefer to hold their own personal data and exchange it with companies when they choose. Indeed, more and more consumers view their personal data as a form of capital to be collected and traded for better service, better offers and better long-term benefits.

“Companies that catch up with this new consumer trend will have to innovate and outdo their competitors to offer the most compelling benefits to consumers to encourage them to share their information. This form of competition-based self-regulation will be the most effective way of giving consumers greater control over their data.”

This was posted in Bdaily's Members' News section by Tom Keighley .