The Australian Government has today released draft legislation to expand the functionality of the Consumer Data Right (CDR) to make it easier and safer for consumers and small businesses to carry out everyday tasks online.
Action initiation will enable consumers and small businesses to take their data‑sharing rights one step further by easily and securely initiating actions like opening and closing accounts, making payments and applying for services through the CDR.
This will reduce complexity, time and cost for consumers looking to safely get better deals and services that meet their needs, unlock new business models, drive innovation and boost competition.
The Government is now seeking comments on the draft legislation that will establish the overarching framework for action initiation in the CDR, including the obligations of parties (such as fintechs, banks and energy companies) that will handle actions on behalf of consumers and with their consent; updated privacy and consumer safeguards; and the process for bringing different actions into the framework.
The CDR is already changing the way Australians benefit from their banking data by giving them the ability to safely share it with trusted third parties to access services tailored to their unique circumstances, such as comparing products and services, accessing better value and improved services, and assisting financial and cashflow management.
Introducing action initiation in the CDR is part of the Government’s commitment to expand the CDR across the economy and grow the opportunities for consumers to make use of their own data for their benefit.
Submissions on the draft legislation are open until 24 October 2022.