Virgin Trains faces an investigation by the data protection watchdog over its release of footage of the Labour leader, Jeremy Corbyn, looking for seats on its London to Newcastle service.

Officials at the Information Commissioner’s Office are making inquiries over whether the train operator, owned by Sir Richard Branson, broke the rules of the Data Protection Act, which governs the release of such data.

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It comes after Virgin accused Corbyn of lying over a claim, made on video and circulated to the press and online, that he had not been able to find a seat on the “ram-packed” train. The Labour leader had used the episode to reiterate his calls for the renationalisation of rail services.

The ICO said: “We are aware of the publication of CCTV images of Jeremy Corbyn and are making inquiries. All organisations have an obligation to comply with the Data Protection Act and must have legitimate grounds for processing the personal data they hold.

“Where there’s a suggestion that this hasn’t happened, the ICO has the power to investigate and can take enforcement action if necessary.”

According to the ICO’s CCTV code of practice, the disclosure of footage must be “consistent with the purpose(s) for which the system was established”.

In words that seem particularly apposite in Corbyn’s case, it goes on: “For example, it can be appropriate to disclose surveillance information to a law enforcement agency when the purpose of the system is to prevent and detect crime, but it would not be appropriate to place them on the internet in most situations. It may also not be appropriate to disclose information about identifiable individuals to the media.”

A spokesperson for Virgin Trains said: “We haven’t yet been approached by the Information Commissioner’s Office but will of course be happy to cooperate completely and answer any questions it has.”