The Government has released draft legislation to expand the functionality of the Consumer Data Right (CDR), a move that would be expected to help consumers and small businesses carry out tasks online.
Treasury will be seeking feedback, through submissions open until 24 October, on draft legislation to enable action initiation in the CDR which is expected to create new channels for consumers ‘to instruct a business to initiate actions on their behalf and with their consent’.
According to the Treasury, action initiation, which includes making a payment, opening bank accounts, switching providers or updating personal details, would empower consumers to authorise, manage and facilitate actions securely in the digital economy.
Action initiation will build on data sharing in the CDR, increasing functionality for the industry and consumers.
The comments on the draft legislation will be used to help establish the overarching framework for action initiation in the CDR and will include the obligations of parties such as fintechs, banks and energy companies to handle actions on behalf of consumers and with their consent as well as update privacy and consumer safeguards.
“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,” Treasury said in the press release.
“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.”