If consumers shared more of their data, and businesses did more to encourage it, the Australian economy would be $16.7 billion larger by 2043, according to Deloitte Access Economics.
The government-regulated Consumer Data Right (CDR) gives people some control over their personal data, but it should be expanded beyond bank accounts and energy needs, and instead, into retail, healthcare, and other personal and professional services.
Deloitte said, in its report called Consumer Data Revolution, that banking and energy accounted for only 4 percent of total consumer data in Australia, compared with 59 percent held by software and information businesses in the technology sector.
Low Rates of Adoption
But Deloitte Partner John O'Mahony said consumer effort could be reduced if people did not have to repeatedly enter the same personal information to be verified by every business and service.Low consumer adoption of the right, and limited business innovation has meant expansion into other sectors has stalled, and he urged the federal government to lead the way by integrating government data sets and establishing Australia as an open data leader.
If this were implemented, almost 50,000 additional jobs could be created through greater competition and new apps built on cross-sector data sharing, according to the report.
ACCC Has Warned of Difficulties With Compliance
The CDR is not widely understood but gives consumers the right to allow their data already held by a business, to be transferred to another business in return for saving on cost or getting a better service.However, its most widespread implementation—in the banking sector where it’s known as “open banking,” introduced four years ago—has already been criticised by the Australian Competition and Consumer Commission (ACCC), which last year called for an “improved culture of compliance” from banks and said those that failed to operate within adequate frameworks might face enforcement action.
“CDR participants must comply with their obligations,” the ACCC said. “In particular, the ACCC expects data holders to regularly review the efficacy of their CDR solutions and address any outstanding data quality incidents as a priority.”
The federal government has pledged to undertake a strategic assessment of the Consumer Data Right framework at the end of 2024.
During that process, the Financial Rights Legal Centre described the CDR as “less a consumer data right and more of a right for business to access consumer data, perpetuating an overreliance on a deeply flawed consent and disclosure model” and said the complexity of the regulatory regime “remains a significant risk for consumers including, ultimately, a lack of engagement and genuine consent.”
