Consumer advocate CHOICE welcomes the news that the Treasury Laws Amendment (Consumer Data Right) Bill 2019 (Consumer Data Right) has passed both houses of Parliament.
The Consumer Data Right gives people the right to access their own data about how they use products and services. As the system matures, it is expected that people will be able to use their data to find tailored, personalised recommendations about the products and services that best suit their individual needs.
"The Consumer Data Right has the potential to be one of the strongest competition reforms we've seen in years. It will help people navigate complex markets where traditionally it is difficult to shop around for a better deal," says CHOICE CEO Alan Kirkland.
"This law provides a framework to help people access better and more tailored products across services like banking, energy and more in the future.
"Right now, it's hard for people to switch in a lot of markets because it’s very difficult to figure out what products offer greater value.
"Because it's hard, most people don't switch providers. When businesses don't need to compete to keep loyal customers, the result is bad service and poor value products.
"Having access to your own personalised usage data will lower at least one of the barriers to switching. This data will make it easier to compare products and see which one is the best value for you," Mr Kirkland says.
CHOICE is also pleased to see that the law includes strong privacy protections and powers for the regulator, the ACCC.
"We hope to see the Consumer Data Right work well for all people, including those who are disadvantaged or in vulnerable circumstances," says Mr Kirkland.
"It will be vitally important for the ACCC to use its new powers to ensure that data is used responsibly and that the Consumer Data Right system is delivering strong outcomes for all Australians, including the more disadvantaged members of our community."
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