Pubs and clubs that use scanners to check ID are to be visited by government investigators, amid fears of identity fraud.
The Information Commissioner's Office, (ICO) which protects public information, is concerned about the amount of personal information such medical background stored on magnetic strips on items such as driving licences, which are scanned by the systems.
Richard Thomas, Information Commissioner, said in a letter to shadow home affairs minister James Brokenshire:
"The key here is what the ID information is being used for. If it is merely to establish whether someone is over 18 then once this is established there is no obvious need to retain any details at all."
The visits will ascertain what customers are told, what information is retained and for how long, and what the information is used for.
After the visits the ICO will issue guidance to pubs and clubs.
Sarah Calderbank, spokesperson at Barracuda Group, said: "The data gathered from our six units that use ID scanners is no more detailed than that of databases bought from the DVLA or other sources - taking name, address and date of birth only - it does not include any sensitive information such as bank or credit card details."
She added that there was an 'opt-out' policy for customers to removed details from any marketing, and only the manager has access.
Tam Thompson, spokesperson for Clubscan, which makes scanning devices, said he would be meeting with Thomas to discuss the matter.
He said: "We welcome wholeheartedly any guidance that's available for our technology. When we contacted them in 2005, there was no guidance.
"The information gathered by Clubscan is always volunteered and is always kept secure by encrypting, security coding, and the data protection act."
He added: "It's weird that one industry should be deemed to be picked out above any other, when around the world we've got governments that use our system, armed forces and medical centres."