Australian Competition and Consumer Commission Issues First Fine Under Consumer Data Right Rules

Why This Privacy Law is Important:

The Consumer Data Right (CDR) Rules enables Australians to use the data businesses hold about them for their own benefit. In July 2022, the Australian Competition and Consumer Commission (ACCC) levied its first fine under the CDR, since the rule has applied to all banks dating from July 2021.

Overview:

On July 13, 2022, the ACCC issued a fine of AUD 133,200 against the Bank of Queensland Ltd., for its failure to provide a service enabling consumers' data to be shared as required by the Australian CDR. Under the CDR rules, the Bank was required to be in a position to share data for financial products, including savings accounts, term deposits and credit cards, by 1 July 2021. Since the Bank of Queensland didn’t make the data sharing services available until mid-December 2021, its customers were unable to take advantage of services to which they were entitled for over five months.

Under the CDR, consumers have a right to share certain data safely and securely with accredited providers, including financial technology companies and other third parties, who can then use that data to provide customized products and services to consumers. With rising interest rates, consumers benefit from greater access to information and tools to help them compare products and make informed banking decisions—exactly what the CDR aims to do.

Who it Applies to:

While the Bank of Queensland Ltd. is to date the only entity fined under the CDR, the regulation applies to the entire banking industry in Australia. Major banks came under regulation in July 2020, and the rest of the industry in July 2021. The rules also apply to the energy sector and are proposed to roll out in the telecommunications industry next; they will eventually apply to the entire economy. All Australian consumers 18 and older are entitled to the rights enumerated by the CDR; small businesses may avail themselves of the rights to help manage their finances.

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