ACCC Soon To Implement Consumer Data Rights
The consumer data right, which enables customers to safely share their information with trusted service providers is a fundamental competition and consumer reform according to Rod Sims, ACCC chair.
The consumer watchdog will have the lead role in turning the concept of a consumer data right (CDR) into a reality, including rule-making, consumer education and, eventually, enforcement.
Speaking at the Consumer Policy Research Centre’s Consumer Data Conference in Melbourne today Sims claims consumer data right is essentially a portability right.
Sims says, “We believe it will enable consumers to actually benefit greatly from the data that businesses already hold about them.”
Banking will be the first industry to be designated under the CDR.
Sims explains how existing customer data held by banks can benefit homeowners, “It is often difficult and costly for borrowers to compare the offers of mortgage providers.
Under the CDR, “banks will make some data, such as customers’ transaction details, available to the customer or the customer’s chosen data recipient. Consumer data rights will reduce the cost to borrowers of discovering and comparing offers,” Mr Sims said.
The ACCC chair also stressed the importance of privacy and security in developing the CDR. The agency will work very closely with the Office of the Australian Information Commissioner on privacy matters.
“Robust privacy protection and information security will be a core feature of the CDR.
“[The data] can only be accessed by trusted parties who have the customer’s consent to access their data.”
The ACCC has created a dedicated Consumer Data Right Branch and work is already underway with a framework paper on the data rules expected for public consultation in August.