What the Data (Use and Access) Act 2025 Means for Businesses: Key Changes and Immediate Compliance Steps

What the Data (Use and Access) Act 2025 Means for Businesses: Key Changes and Immediate Compliance Steps

The Data (Use and Access) Act 2025 has just received Royal Assent, marking a significant development in the realm of data protection. This new legislation is making waves across the data protection community, and businesses must quickly adapt to its provisions. In this blog post, we will explore the main provisions of the Act, its implications for businesses, and the steps organizations need to take to ensure compliance.

Summary of the Act’s Main Provisions

The Data (Use and Access) Act 2025 aims to enhance data protection by introducing stricter controls on data use and access. Key provisions include:

  • Enhanced User Consent: Businesses must obtain explicit consent from users before processing their data.
  • Data Minimization: Organizations are required to limit data collection to what is strictly necessary for their operations.
  • Increased Transparency: Companies must provide clear information about how data is used and shared.
  • Stronger Data Subject Rights: Individuals have greater control over their data, including the right to access, correct, and delete their information.

Immediate Implications for Businesses

With the Act now in effect, businesses face new compliance obligations. These include:

  • Reviewing Data Practices: Companies must audit their data collection and processing activities to ensure compliance with the new rules.
  • Updating Privacy Policies: Privacy policies need to be revised to reflect the enhanced transparency and consent requirements.
  • Training Staff: Employees should be trained on the new data protection standards to prevent non-compliance.

Comparison with Existing UK and EU Data Protection Laws

While the Act aligns with the General Data Protection Regulation (GDPR) in many respects, it introduces several new elements:

  • Broader Scope: The Act applies to a wider range of data processing activities.
  • Stricter Penalties: Non-compliance can result in higher fines compared to existing UK and EU laws.

Practical Steps for Organizations

To ensure compliance, businesses should:

  • Conduct a Data Protection Impact Assessment (DPIA): Identify and mitigate risks associated with data processing activities.
  • Implement Privacy by Design: Integrate data protection into the development of new products and services.
  • Establish a Data Breach Response Plan: Prepare for potential data breaches with a clear response strategy.

Potential Enforcement Actions

The Information Commissioner’s Office (ICO) has already demonstrated its willingness to enforce data protection laws, as seen in the recent £2.31 million penalty for 23andMe. Businesses should learn from such cases and prioritize compliance to avoid similar fines.

Interaction with Ongoing Developments

The Act also interacts with other developments, such as the EU’s extension of UK adequacy decisions and new cross-border GDPR enforcement agreements. Businesses operating internationally must stay informed about these changes to maintain compliance.

Conclusion

The Data (Use and Access) Act 2025 represents a significant shift in data protection law. By understanding its provisions and taking proactive compliance steps, businesses can navigate this new landscape effectively.