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The passage of the Action Initiation Bill by the Australian Senate has marked a significant milestone for the Consumer Data Right (CDR) framework. The bill, which had languished without significant discussion for nearly two years, introduces a new dimension to consumer rights in Australia. With its adoption, consumers gain enhanced capabilities to not only share their data but also initiate actions directly through accredited service providers.
Jessica Booth, Chief Operating Officer at Biza.io, emphasised the bill's importance, stating, "The passing of the Action Initiation Bill marks a major milestone for the Consumer Data Right. Australian consumers will now have the power to take actions that benefit them, and their wallets." She highlighted that the core aim of action initiation is to foster increased competition. Booth elaborated on practical examples, citing energy and banking sectors as areas where consumers could see immediate benefits.
Booth illustrated how the new provisions would operate in practice: “Imagine you want to save on your electricity bill. To do this, you will be able to find an energy savings app which is an accredited CDR data recipient. You can then consent for your current energy provider to share your energy usage data with the app. Once you've shared your data, you're instantly provided with energy plan options which show you how much you can save on your energy bills according to your specific usage patterns. Then, with a click of a button, you can switch energy plans to your preferred provider and void the old one, saving tedious admin in the process.”
The bill also extends these benefits to financial services. Consumers will be able to direct banks to perform specific actions on their behalf, such as transferring a mortgage to another bank or setting up automated payments towards savings goals or loan reductions. Booth noted, "As the actions are defined by Treasury, banks will be required to undertake these actions by request of the consumer through the CDR, reducing complexities for consumers and ultimately creating a more competitive, consumer-friendly landscape."
Jamie Leach, an open data strategist at Raidiam, provided a more cautious reception to the bill's passage. "The passing of the bill has been heralded as the push that the CDR needed to get moving again,” Leach commented. “I'm not sure if I agree. I liken the passing to an announcement that there will be a Super Bowl or a Grand Prix at some point in the future. No date has been suggested at this time. The event organisers have shared that they will be consulting with the market for the third time on the same topic. The underlying announcement should be celebrated, with eager anticipation of what is to come. For the industries that surround the sporting codes, a glimmer of hope reappears."
The broader implications of this legislation are expansive. Once the CDR framework extends to new industries such as telecommunications, superannuation, and insurance, consumers will have the power to seek better deals across a wider array of services, potentially mitigating the current cost of living crisis. Booth stressed, "In the current cost of living crisis, giving Australian consumers the power to take actions that will save money and time is critically important. We are pleased to see the Action Initiation Bill pass. Its importance to the health of our digital economy shouldn't be underestimated."
Despite the initial mixed reactions, the passage of the Action Initiation Bill represents a forward step in empowering consumers. By allowing for seamless transitions and streamlined control over various services, the bill aims to create a more competitive marketplace, improving accessibility and reducing administrative burdens for Australian consumers.
