The Australian Competition and Consumer Commission (ACCC) is to take the lead role in developing rules and regulations enabling Australian consumers to maintain control of their personal information even after it is shared with service providers and other organisations.
Chair of the ACCC, Rod Sims (pictured) said the new power, known as the Consumer Data Right (CDR), was fundamental to competition and consumer reform.
Mr Sims told the Consumer Policy Research Centre’s conference in Melbourne that the concept of a consumer right would soon become a reality, including rule-making, consumer education and, eventually, enforcement.
“The Consumer Data Right is essentially a data portability right,” Mr Sims said.
“We believe it will enable consumers to actually benefit greatly from the data that businesses already hold about them.”
He said banking was the first industry to be designated under the CDR and he used it as an example to explain how existing customer data held by banks could benefit homeowners.
“It is often difficult and costly for borrowers to compare the offers of mortgage providers,” Mr Sims said.
“Under the CDR, banks will make some data, such as customers’ transaction details, available to the customer or the customer’s chosen data recipient.”
He said the CDR would reduce the cost to borrowers of discovering and comparing offers.
Mr Sims also stressed the importance of privacy and security in developing the CDR.
“We will work very closely with the Office of the Australian Information Commissioner on privacy matters,” he said.
“Robust privacy protection and information security will be a core feature of the CDR.”
The full text of Mr Sims’ speech can be accessed on the ACCC website at this PS News link.
