Consumer Data Right launched pushed to July 2020

ACCC says there's a need for more testing to shore up security and privacy protections around consumer data plan

The Australian Competition and Consumer Commission (ACCC) has pushed back the launch date for Australia’s new consumer data right to July, citing a need for more testing.

In a statement today, the consumer watchdog said it was deferring certain aspects of the CDR from February 2020 to July 2020. Services will initially allow consumers to direct banks to share their credit and debit card, deposit account and transaction account data with accredited service providers from 1 July. Consumers will then be able to have their mortgage and personal loan data shared after 1 November 2020.

The ACCC said having a longer gestation time will allow additional implementation work and testing to be completed, thereby shoring up security and privacy protections required to operate effectively.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user-friendly and properly tested,” ACCC commissioner, Sarah Court, said.

“Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

The ACCC said rules pertaining to the adjustment will be released in January, and that it plans to conduct further consultation around any significant changes to other phases of the CDR.

The CDR legislation, first announced in November 2016, is about improving consumer data portability and transparency, all in the name of giving consumers greater control of their data. Banking is the first industry the CDR is being applied to, under the Open Banking regime.

Having released a draft framework in September 2018, the ACCC confirmed 12 months later that Australia’s four big banks as well as ten entities – 86400, Frollo Australia, Identitii, Procure Build, Quicka, Regional Australia Bank, Verifier Australia, Wildcard Money, Intuit Australia and Money Tree Financial Technology – were selected as initial data recipients to test the CDR before its general application to the wider banking sector.

The rollout of CDR in banking will then be followed by Australia’s energy and telecommunications sectors.

The CDR plan, which received $44.6 million in last year’s Federal Budget to support its launch, followed a Productivity Commission inquiry, commenced in late 2016, which called for a revolution of the country’s data policy framework to give more control of information collected about them by businesses and governments.

It was in the draft report, Data Availability and Use, that the commission first mooted the idea of a comprehensive right to give consumers more control over these data assets, as well as giving individuals the ability to transfer data to a third party of their choice, make edits and corrections, gain a digital copy, and opt out of data collecting activities both in the public and private sector. 

Commenting on the news, Experian A/NZ general manager of credit services and decision analytics, Poli Konstantinidis, welcomed the extra time. 

“Based on our experience in the UK, we have always believed the implementation of CDR here needed to be exercised with care, so we welcome this considered approach to the CDR rollout," he said. "While a true open data environment may be delayed for now, it’s vital CDR is implemented effectively and regulated properly so consumers can have access to the wide ranging benefits.  

“The additional time available should be used to increase the awareness of open data among Australians."

Konstantinidis noted Experian research found two-thirds of Australians are comfortable with sharing basic personal data, however, the willingness sharply declines around highly guarded data and demographic information.

"This shows that if our local understanding of data use is not nurtured, there is the possibility of consumers feeling cheated if their perception of data sharing is negative, or will not be willing to participate in open data initiatives,” he said.

Meanwhile, the Minister for Energy and Emissions Reduction, the Hon Angus Taylor, announced the Government’s support this week for a consumer-facing energy data hub, called ‘Energy Marketplace’, giving consumers greater visibility of their energy usage.

The new plan will see 5000 households and businesses as well as 250 schools invited to put a Wattwatchers smart energy device in their physical spaces to monitor energy use in real time. These customers will then be able to access their own energy use and data online and using an app, helping them achieve energy savings.

The new initiative is being supported by $2.7 million in Government funding via the Australian Renewable Energy Agency, and is part of a three-year, $8 million trial being led by Wattwatchers, a Sydney clean tech company.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.  

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Blog Posts

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

The playbook to develop strategic brand moats

Warren Buffet is an unlikely ally for marketers. But his belief businesses need strategic moats that increase their value in the market while acting as barriers to competitors can offer marketers a new playbook for brand building and driving growth.

Fabian Di Marco

Founder and managing director, Tzu & Co

Sign in