Draft Consumer Data Right published

The federal government has released the draft version of the new Consumer Data Right for public consultation.

The proposed Consumer Data Right would allow Australians to take greater control over how their personal data is used and shared by companies.

For example, the new right would allow consumers to compel companies to share their information with competitors to allow them to negotiate the best deals.

The consumer data right will first be introduced in the banking sector, in a principle known as Open Banking. Customers will be able to direct banks to share information such as data related to deposit accounts, debit and credit cards, mortgages, personal and business loans and transaction accounts.

Data recipients will need to be accredited as trustworthy to receive consumer data as part of the Consumer Data Right.

“This Bill is a game changer for Australians. The Consumer Data Right will empower customers to use their data for their own benefit,” Treasurer Scott Morrison said in a statement announcing the publication of the draft legislation.

“It will arm Australians with the right information they need to seek better deals on banking products and loans, with further sectors such as energy and telecommunications services to be added over time.”

The ACCC last month announced that it plans to take the lead in establishing the new right, and will commence work on its implementation shortly.

Image credit: ©iStockphoto.com/violetkaipa

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