As Australia's new consumer data rights regime comes into force, we take you through the background and key aspects
The Consumer Data Right (CDR), a regime comprising legislation, rules and standards, is in the process of being implemented in Australia. Phase one of consumer data sharing in the financial services sector commenced on 1 July 2020.
The objective of the CDR is to provide ‘CDR consumers’ (both individuals and businesses) with a right to access, and direct accredited third parties (ADRs) to access and use, information held about that consumer by a data holder.
The CDR regime recognises the value and utility of data to both businesses and individuals, and is reflective of regulatory trends globally regarding how businesses use and commercialise, and consumers control and understand the use of, consumer data.
Stay tuned for insights from our data specialists that address key opportunities and challenges presented by the rollout of the CDR regime in Australia.
On 30 September 2020, the Australian Competition and Consumer Commission released a further consultation paper concerning the continued expansion and development of the Consumer Data Right (CDR) regime.
The consultation paper accompanies an Exposure Draft with proposed amendments to the Competition and Consumer (Consumer Data Right) Rules 2020 (Rules), which aim to facilitate participation in the CDR ecosystem by a broader range of entities and to promote a flexible, dynamic and effective regime for sharing consumer data.
Several months after consumer data sharing under Australia’s Consumer Data Right (CDR) framework commenced (1 July 2020) for the banking sector, only six entities have been successfully accredited as data recipients. To date, significant traction on CDR opportunities has not been apparent, which may well have been influenced by the impacts of and progressive recovery from COVID-19. As levels of activity in the Australian fintech sector continue to rise, now is an opportune time for organisations seeking to enter this growth sector to engage with the CDR accreditation process to ensure that they are best positioned to become competitive in the CDR ecosystem.
The Competition and Consumer Rules 2020 were recently amended to allow accredited third party service providers to provide additional services within the Consumer Data Right (CDR) ecosystem. Subject to consumer consent, the amendments permit accredited intermediaries to collect CDR data from data holders (in addition to using or disclosing CDR data) on behalf of accredited data recipients (ADRs).
The Consumer Data Right (CDR) is currently proceeding through a staged implementation in the financial sector. On 8 May 2020 the Australian Competition and Consumer Commission (ACCC) and the Office of the Australian Information Commissioner (OAIC) released their Compliance and Enforcement Policy for the CDR (Policy).
Following extensive activity around the Consumer Data Right (CDR) throughout 2019, the Australian Competition and Consumer Commission (ACCC) advised in December 2019 that the CDR roll-out in respect of the banking sector would be delayed due to incomplete system testing. As a result, the first availability of consumer data via the CDR has been pushed back from February to July 2020.
The Senate Select Committee on Financial Technology and Regulatory Technology (the Committee) is considering the current and future government approach to FinTech and RegTech in Australia, and is inviting submissions until 31 December 2019.
The ACCC’s selection of a ‘gateway’ model as the preferred data access model for implementation of the Consumer Data Right (CDR) in the energy sector is anticipated to align to the preferences of incumbent energy sector participants, but may not fully meet the expectations of potential new market players.
Herbert Smith Freehills’ briefing on the progress of the Consumer Data Right (CDR) legislation’s implementation in Australia following the CDR Bill’s introduction into Parliament last Wednesday Our briefing identifies key potential financial industry impacts, practical CDR issues and cross-sector CDR implications that businesses can expect if the CDR Bill is passed this week.
Herbert Smith Freehills’ update on the implementation of the Consumer Data Right (CDR) in Australia ahead of the federal election.
Herbert Smith Freehills’ update on the implementation of the Consumer Data Right (CDR) in Australia following the return of the Coalition government at the federal election.