ACCC cautions industry data holders

The Australian Competition and Consumer Commission (ACCC) has emphasised data holders' obligations under the consumer data right scheme, after industry groups called for regulatory intervention.

Last month FinTech Australia and FDATA ANZ released a joint statement claiming that ING’s intention to change its consumer data right (CDR) consent solution would be in breach of its obligations.

The two organisations argued ING Bank’s planned solution would invalidate existing data sharing consents with fintechs and creating a precedence for other major banks to follow suit.

The ACCC has now released data holder regulatory guidance on managing implementation change, through its CDR support portal.

In its statement, the ACCC said data holders, such as ING Bank, are expected to meet “technical requirements as part of participation in the CDR”, including “designing their technology solutions to incorporate the consumer authorisation process”.

The statement said data holders can opt to make changes to CDR systems but highlighted “the need for data holders to give careful consideration to the impact of any changes on consents and authorisations.”

The guidance sets out the ACCC’s expectation that data holders will take steps to ensure continuity of ongoing consents and authorisations when there is a change to an underlying CDR technology solution.

Data holders should “avoid disrupting or breaking consents and authorisations” outside CDR rules, as this can lead to disruption for consumers.

"Existing consents and authorisations are expected to be maintained," it counselled.

FDATA's regional drector for A/NZ Mathew Mytka welcomed the ACCC's provision of "specific guidance to data holders to be considerate of the impacts that system changes on consents and authorisations can have”.   

“Software updates and system migrations in the CDR will be necessary to account for, and data holders should prioritise ensuring continuity of ongoing consents and authorisations where possible," Mytka told iTnews.

“Badly managed and communicated implementation change can cause disruption for accredited data recipients and ultimately consumers.

“ING recently went through its system update and the initial approach they took caused unnecessary disruption.

“Although they delayed the rollout in light of industry pressure, the situation highlights how being proactive with communicating plans and involving ADRs and other ecosystem stakeholders goes a long way to improving trust as part of this economic reform and digital transformation."

FinTech Australia general manager Rehan D'Almeida also welcomed the ACCC clarifying data holder duties during the switch of technology platforms.

D'Almeida told iTnews the ACCC “taking a more active stance in this matter will deter radical decisions from data holders in this regard, and promote a more consultative, considered approach."

“With cost of living a key consideration of all Australians, ensuring the smooth rollout of the CDR should be a top priority for both government and regulators," D'Almeida said.

“We look forward to continuing our work with the ACCC, data holders and fintechs, to ensure this innovation has its full intended effect in revolutionising the way Australians perceive their finances and access services.”