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The Data (Use and Access) Act 2025 (DUA Act) becomes UK law

The DUA Act, which received Royal Assent on 19 June 2025, reforms UK data protection laws and will be implemented in phases. Key changes include:

• A new “recognised legitimate interests” lawful basis, exempting certain data uses (e.g., crime prevention and protecting vulnerable individuals) from a balancing test.
• Exemptions to the need to get user consent to deploy non-strictly necessary cookie rules for low-risk purposes, such as fraud prevention.
• Complaints must now be raised with data controllers first before escalating to the ICO, so policies and procedures should be updated to include a complaints and escalation mechanism for data protection issues.

UK’s adequate data protection law status likely to be extended to December 2031

UK GDPR, a UK-specific version of the EU GDPR, was deemed “adequate” by the EU, allowing free data flow between the UK and the EU (post Brexit). The adequacy decision, initially expiring in June 2025, was extended to December 2025 following the DUA Act, which made changes to data protection rules in the UK. The European Commission reviewed the UK’s updated data protection framework and concluded it still meets the “essential equivalence” standard, likely extending adequacy until 27 December 2031, with reviews every four years.

Court of Appeal decision on compensation claims for personal data breaches

On 22 August 2025, the Court of Appeal delivered a significant judgment in Farley and Others v Paymaster (1836) Ltd (trading as Equiniti) [2025] EWCA Civ 1117. The case arose from the misaddressing of annual benefit statements (ABS) for 432 police pension scheme members, sent to outdated addresses. Claimants alleged distress and anxiety over potential misuse of their data. While 14 confirmed their ABS had been accessed by unauthorised third parties, the High Court had ruled proof of third-party disclosure was necessary.

The Court of Appeal reversed this decision, holding third-party disclosure is not essential for data protection claims. Mishandling personal data itself constitutes an infringement of GDPR rights. Compensation is recoverable for non-material damage, including anxiety, if the fear of misuse is objectively reasonable. Hypothetical or speculative fears cannot be compensated. The case now returns to the High Court to assess the reasonableness of the appellants’ fears and any psychiatric injuries.

UK’s digital ID scheme

The scheme aims to simplify access to government and private services (e.g., welfare, childcare, renting) and reduce identity fraud, streamline verification, and toughen employment checks. The scheme is centred around free digital IDs stored securely on phones with biometric security (photo). Data includes name, date of birth, nationality/residency status, photo with biometric security. Address may be added post-consultation. The scheme will require employers to check IDs for right-to-work. The police will not be able to demand to see the digital ID. The UK Government state that the data will be stored on devices with encryption and credentials can be revoked if a device is lost/stolen. The scheme will be accessible with assistive technologies and physical alternatives plus support for non-smartphone users. A public consultation is planned for later in the year and rollout expected by end of current Parliament.

ICO call for views on regulating online advertising, legitimate interests, data protection complaints and online safety

• On 7 July 2025, the ICO launched a consultation on its approach to regulating online advertising under the Privacy and Electronic Communications Regulations (PECR). Open until 7 September 2025, it sought views on balancing privacy, innovation, and economic growth. Consent remains mandatory for high-risk practices like behavioural advertising, but the ICO aims to identify low-risk advertising activities (e.g., ad delivery and fraud prevention). It plans to outline non-enforcement areas and safeguards in early 2026.
• On 30 July 2025, the ICO launched a consultation on guidance for using profiling tools in online safety systems under the Online Safety Act 2023. Open until 31 October 2025, it focuses on lawful, fair, and transparent use of AI tools for detecting harmful behaviours like grooming and fraud. It highlights compliance with UK GDPR, DPA 2018, and PECR, emphasising lawfulness, transparency, data minimisation, and safeguarding children.
• On 21 August 2025, the ICO launched public consultations on DUA Act amendments:
  • Recognised Legitimate Interest: This lawful basis allows processing personal data for pre-approved public interest purposes like safeguarding and emergencies. Consultation closes 30 October 2025.
  • Complaints: By June 2026, organisations must establish formal processes for complaints regarding personal data handling. Consultation ends 19 October 2025.

ICO enforcement actions

• AFK Letters Co Ltd: Fined £90,000 on 14 April 2025 for breaching PECR regulation 21 by making 95,277 unsolicited marketing calls in 2023. Issues included poor consent documentation and non-compliance.
• 23andMe: Fined £2.31 million on 17 June 2025 for a data breach exposing sensitive genetic and health data of 155,592 UK users. Failures included weak security measures and lack of mandatory multi-factor authentication.
• Capita: A Penalty Notice to Capita plc (£8 million) and Capita Pension Solutions Limited (£6 million) for data breach. A cyberattack (March 2023) exposed data of over 6.6 million individuals, including sensitive health data and financial details.