The information commissioner (IC) has ordered the government to increase the security surrounding managed data.
A new report from the IC and the director of the Wellcome Trust has found many businesses do not handle their data in the correct way.
The report also deemed the Data Protection Act to be "deeply confusing" with many businesses having a "lack of transparency and accountability" in the way they deal with personal managed data.
Richard Thomas, the commissioner, said the government should "clarify and simplify" the rules surrounding data sharing and give more guidance to businesses.
The report added the Information Commissioner's Office should given more powers and resourcing.
"Data sharing in and of itself is neither good nor bad," the report said, but what is being shared and how securely is a concern.
Included in the recommendations is that businesses should notify the IC when a significant breach occurs "as a matter of good practice", reports OutLaw.com.
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