Proposed new data rules put consumers and privacy at risk

Published:

Financial Rights has serious concerns that sweeping changes to the Consumer Data Right will allow highly sensitive consumer data to be accessed by unauthorised third parties.

Financial Rights Director of Casework Alexandra Kelly said the new rules could enable companies which are not required to meet the regime's higher security and safety standards for privacy, to access private and sensitive consumer data.
 
These concerns have been outlined in a submission to the Australian Competition and Consumer Commission as part of consultation concerning proposed changes to the Consumer Data Right Rules.

"The entire point of the Consumer Data Right is to build a secure data environment in which consumers feel confident and safe using and sharing their data," Ms Kelly said.

"This proposal will fundamentally undermine consumer trust and confidence in the CDR.

"It is also likely to open the floodgates to non-accredited companies to obtain sensitive data without having to meet higher privacy standards. In some cases they won't have to meet any privacy standards at all."

According to Office of the Information Commissioner's 2020 Community Attitudes to Privacy survey, 83 percent of Australians want the government to do more to protect the privacy of their data.

"There is scant evidence of any consumer demand for Open Banking services but there is real evidence of high levels of consumer demand for increased privacy protections," Ms Kelly said.
 
"It is disappointing that the ACCC's proposal places the finance sector's interest in obtaining consumer data ahead of the consumer interest in a stronger privacy regime."

The ACCC also proposes to introduce new rules that allow more direct marketing to take place, and the sale of consumer data.

Other proposals include a raft of complexities to the regime including multiple tiers of accreditation, self-regulation with minimal oversight and a new set of confusing and contradictory consents that undermine the voluntary and informed nature of consent in the digital age.

"These proposals could result in financially vulnerable people being targeted by new Open Banking players and sold expensive credit and inappropriate debt and credit solutions they can't afford," Ms Kelly said.

"We urge the ACCC to reconsider these erroneous recommendations and instead put consumer interests at the heart of the new data regime."

About Financial Rights
The Financial Rights Legal Centre is a community legal centre that specialises in helping consumers understand and enforce their financial rights, especially low income and otherwise marginalised or vulnerable consumers. We provide free and independent financial counselling, legal advice and representation to individuals about a broad range of financial issues. We operate the Insurance Law Service which provides advice nationally to consumers about insurance claims and debts to insurance companies. Financial Rights also operates the National Debt Helpline in NSW, assisting consumers experiencing financial difficulties. Financial Rights took over 25,000 calls for advice or assistance during the 2017/2018 financial year.

  • National Debt Helpline 1800 007 007
  • Insurance Law Service 1300 663 464
  • Mob Strong Debt Help 1800 808 488
 
Australian Government Community Law & Safety Money & Finance
Social:   

Privately Submitted Article or Event :
See Above Article or Event for Address, Sunshine Coast Wide
Privately Submitted Article or Event
Showing 10+ recent articles for this business
Unchecked misinformation risks Australia's vaccine response 25 January 2021 | A newly formed coalition of health and technology experts is calling on the Australian Parliament to force Big Tech companies to reveal the true extent of COVID-19 misinformation. More information...
Tropical inspired Diabolo pop up bar ready to roll at Big Pineapple 15 January 2021 | Sunshine Coast weekends are set to become even more cooler with the opening of a tropical inspired pop up bar at the Big Pineapple from midday to sunset this Saturday and Sunday. More information...
RTBU Launches campaign to protect COVID-vulnerable workers 17 January 2021 | The RTBU has launched a national campaign to better protect workers who are at significant risk of death or serious illness from COVID-19. More information...
"I get chills!": Hervey Bay grandmother's Christmas getaway delivers cool $1.5 million TattsLotto win 04 January 2021 | A Hervey Bay grandmother visiting family in Melbourne for Christmas has explained she "gets chills" every time someone reminds her she's now a millionaire from scoring division one in the weekends TattsLotto... More information...
Study shows meaningful lockdown activity is more satisfying than busyness 11 January 2021 | New research shows people who pursue meaningful activities – things they enjoy doing – during lockdown feel more satisfied than those who simply keep themselves busy. More information...
New rules needed for out-of-control social media: Reset Australia 11 January 2021 | Social media giants need new rules that meet Australian community expectations, says Reset Australia. More information...
ACCC's recommendations must be implemented to avert insurance calamity after natural disasters 30 December 2020 | The Financial Rights Legal Centre has urged the Australian Government to immediately act to implement the recommendations of the Northern Australia insurance inquiry to ensure Australians have access to affordable... More information...
Inquiry report is business's blueprint for killing class actions 22 December 2020 | The class actions inquiry's key recommendations, if converted into law, would be a green light for corporations to rip off customers, harm communities, and lie to investors, according to Class Actions Australia... More information...
Poll: Australians fear COVID-19 misinformation threat, want transparency 26 December 2020 | Australians fear unchecked misinformation online could derails our COVID-19 vaccination efforts, and want to see greater transparency about the extent of the problem, new polling has found. More information...
Consumers warned to avoid Christmas debt 22 December 2020 | The Financial Rights Legal Centre and Mob Strong Debt Help are urging consumers to be careful if taking out loans or using buy now, pay later services (BNPL) to keep up with Christmas expenses. More information...


comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service