About the Consumer Data Right
The Consumer Data Right is a world leading data sharing and portability initiative.
The Consumer Data Right:
- allows consumers to safely share the data that businesses hold about them
- helps consumers compare between products and services to find offers that best match their needs
- encourages competition between providers, leading to more innovative products and services.
Every time a consumer purchases or uses a product or service, valuable data is generated about them.
- In the past, this data was exclusively held by the product or service provider.
- With the introduction of the Consumer Data Right, consumers can choose whether to share their data, who they want to share it with, and for how long.
The Consumer Data Right also requires businesses to share data about the products and services they offer in a standardised way. This makes it easier to compare offers.
Data sharing can be used for different purposes. This includes to:
- help with budgeting
- support loan applications
- use a consumer’s actual energy consumption to compare products and find the best-matched product for them.
How the Consumer Data Right works in practice
The Australian Government specifies the types of businesses that must share data if requested by a consumer. In the Consumer Data Right, these businesses are known as ‘designated data holders’.
With a consumer’s consent, designated data holders can transfer data to other businesses that have been through a rigorous ACCC accreditation process, known as ‘accredited data recipients’, or to their authorised representatives.
The ACCC operates the software that ensures that data is transferred only between designated data holders and accredited data recipients or their authorised representative.
There are Consumer Data Right rules, standards and privacy safeguards to make it safe and secure for consumers. The ACCC and the Office of the Australian Information Commissioner (OAIC) are responsible for ensuring compliance and enforcement.
Example of a consumer sharing data using the Consumer Data Right
A consumer is interested in using a budgeting app.
They decide to check the list of current providers in the Consumer Data Right to see if the budgeting app provider is:
- an accredited data recipient, or
- an authorised representative of an accredited data recipient.
The consumer confirms that the provider is an accredited data recipient.
In the budgeting app, the consumer sees they have the option to provide their consent for the app provider to receive their bank account data under the Consumer Data Right. They give their permission.
The bank verifies the consumer’s identity by sending a one-time password to the consumer and asking the consumer to confirm which data they would like to share with the budgeting app.
After the consumer confirms, the selected data is shared with the budgeting app using secure automated technology.
The Consumer Data Right is intended to be economy wide.
See the current timetable for the Consumer Data Right rollout.
Live sharing of consumer data began with the banking sector on 1 July 2020. All Australian banks are required to participate in the Consumer Data Right. Implementation in the banking sector is now largely complete.
Energy and telecommunications sectors
The Consumer Data Right is being rolled out to the energy sector with the telecommunications sector to follow.
The legal basis of our functions
Part IVD of the Competition and Consumer Act 2010:
- establishes the Consumer Data Right
- provides the ACCC with its functions and powers for the Consumer Data Right.
The ACCC also has powers and functions under the Consumer Data Right rules which detail how the Consumer Data Right works and is implemented.
Responsibilities for Consumer Data Right
The Consumer Data Right is a joint effort involving Treasury and several Australian Government agencies, including the ACCC.
Treasury is the policy agency for the Consumer Data Right and is accountable for the program.
Treasury responsibilities include the development of rules, advice to government on which sectors to apply the Consumer Data Right to in the future, and public communication and promotion of the Consumer Data Right.
The ACCC delivers the enabling technology solutions. These include the register and accreditation application platform, a conformance test suite, and a range of free software tools for providers.
- accredit the Consumer Data Right data recipients
- support data holders and accredited data recipients with testing and on-boarding to start sharing data
- provide guidance and monitor compliance with the Consumer Data Right legislation, rules and standards, and carry out strategic enforcement action
- conduct audits and targeted compliance reviews of participants from time to time to ensure they are complying with their obligations.
Office of the Australian Information Commissioner
The Office of the Australian Information Commissioner (OAIC) enforces the privacy safeguards and the Consumer Data Right privacy rules.
The OAIC also investigates individual consumer and small business complaints about the handling of Consumer Data Right data by Consumer Data Right participants. Where appropriate, the OAIC refers complaints to external dispute resolution bodies or the ACCC.
Data Standards Body
The Data Standards Body within Treasury creates the technical and consumer experience standards for how data is shared under the Consumer Data Right.
See the current version of the Consumer data standards.
Learn more about the Consumer Data Right