diff --git a/lib/errors.ts b/lib/errors.ts
index d89a66b4..a8bdfaee 100644
--- a/lib/errors.ts
+++ b/lib/errors.ts
@@ -20,6 +20,7 @@ import * as os from 'os';
 import { TypedError } from 'typed-error';
 import { getChalk, stripIndent } from './utils/lazy';
 import { getHelp } from './utils/messages';
+import { CliSettings } from './utils/bootstrap';
 
 export class ExpectedError extends TypedError {
 	public code?: string;
@@ -104,6 +105,17 @@ function interpret(error: Error): string {
 	return error.message;
 }
 
+function loadDataDirectory(): string {
+	try {
+		const settings = new CliSettings();
+		return settings.get('dataDirectory') as string;
+	} catch {
+		return os.platform() === 'win32'
+			? 'C:\\Users\\<user>\\_balena'
+			: '$HOME/.balena';
+	}
+}
+
 const messages: {
 	[key: string]: (error: Error & { path?: string }) => string;
 } = {
@@ -127,6 +139,23 @@ const messages: {
 
 	EACCES: (e) => messages.EPERM(e),
 
+	BalenaSettingsPermissionError: () => {
+		const dataDirectory = loadDataDirectory();
+
+		return stripIndent`
+			Error reading data directory: "${dataDirectory}"
+
+			This error usually indicates that the user doesn't have permissions over that directory,
+			which can happen if balena CLI was executed as the root user.
+
+			${
+				os.platform() === 'win32'
+					? `Try resetting the ownership by opening a new Command Prompt as administrator and running: \`takeown /f ${dataDirectory} /r\``
+					: `Try resetting the ownership by running: \`sudo chown -R $(whoami) ${dataDirectory}\``
+			}
+		`;
+	},
+
 	ETIMEDOUT: () =>
 		'Oops something went wrong, please check your connection and try again.',
 
@@ -151,6 +180,7 @@ const messages: {
 // related issue https://github.com/balena-io/balena-sdk/issues/1025
 // related issue https://github.com/balena-io/balena-cli/issues/2126
 const EXPECTED_ERROR_REGEXES = [
+	/^BalenaSettingsPermissionError/, // balena-settings-storage
 	/^BalenaAmbiguousApplication/, // balena-sdk
 	/^BalenaAmbiguousDevice/, // balena-sdk
 	/^BalenaApplicationNotFound/, // balena-sdk
diff --git a/npm-shrinkwrap.json b/npm-shrinkwrap.json
index 61b073a0..f3abbee6 100644
--- a/npm-shrinkwrap.json
+++ b/npm-shrinkwrap.json
@@ -2534,18 +2534,6 @@
         "balena-settings-storage": "^7.0.0",
         "jwt-decode": "^2.2.0",
         "tslib": "^2.0.0"
-      },
-      "dependencies": {
-        "balena-settings-storage": {
-          "version": "7.0.0",
-          "resolved": "https://registry.npmjs.org/balena-settings-storage/-/balena-settings-storage-7.0.0.tgz",
-          "integrity": "sha512-gufzVJznyt9e1CvpBuLe2caU5KcEwl1YHCbK5OMz09zXDA2OMAICPXsLlViK+KiuZwZrBx3tyU2FZjAzRZFgwQ==",
-          "requires": {
-            "@types/node": "^10.17.26",
-            "balena-errors": "^4.7.1",
-            "tslib": "^2.0.0"
-          }
-        }
       }
     },
     "balena-config-json": {
@@ -2793,11 +2781,12 @@
       }
     },
     "balena-settings-storage": {
-      "version": "6.0.1",
-      "resolved": "https://registry.npmjs.org/balena-settings-storage/-/balena-settings-storage-6.0.1.tgz",
-      "integrity": "sha512-jdDoKzbJXlF696EZSbwD6lZ1dMe98aUtx7btFE4j4PRCSeh2BWx5P5VLGh9Bk3sH2FUcqYg0iw/wdKvkcv44oA==",
+      "version": "7.0.0",
+      "resolved": "https://registry.npmjs.org/balena-settings-storage/-/balena-settings-storage-7.0.0.tgz",
+      "integrity": "sha512-gufzVJznyt9e1CvpBuLe2caU5KcEwl1YHCbK5OMz09zXDA2OMAICPXsLlViK+KiuZwZrBx3tyU2FZjAzRZFgwQ==",
       "requires": {
         "@types/node": "^10.17.26",
+        "balena-errors": "^4.7.1",
         "tslib": "^2.0.0"
       }
     },
diff --git a/package.json b/package.json
index e69e6f7f..5e1f9130 100644
--- a/package.json
+++ b/package.json
@@ -204,7 +204,7 @@
     "balena-sdk": "^15.20.0",
     "balena-semver": "^2.3.0",
     "balena-settings-client": "^4.0.5",
-    "balena-settings-storage": "^6.0.1",
+    "balena-settings-storage": "^7.0.0",
     "balena-sync": "^11.0.2",
     "bluebird": "^3.7.2",
     "body-parser": "^1.19.0",