Australia’s Consumer Data Right and the uncertain role of information privacy law

Abstract

Data portability rights are viewed by policymakers worldwide as a significant legal innovation to stimulate competitive digital economies. These rights allow consumers and businesses to seamlessly receive and transfer data for commercialization and efficiency purposes. The newly implemented Australian Consumer Data Right (CDR) provides an illuminating example of the complex relationship between information privacy and competition law which is central to data portability initiatives. The CDR grants consumers and businesses access and transfer rights for consumer data in the Australian banking, energy, and telecommunications sectors, through the implementation of mandated API standards. There are three policy vectors at the heart of the CDR that parallel previous Australian, UK, and EU data portability developments. They are the type of regulated data covered by the CDR scheme, privacy and security protections and the overarching regulatory framework. We argue that the CDR, and its antecedents, primarily construct data portability as a competition law measure. However, while the general policy intention of the CDR is clear, we contend that the scheme reveals an uncertain role for information privacy law as part of its operation. Uncertainty is evident in how policymakers have considered the information privacy law issues inherent in the three policy vectors. We contend that the CDR could give rise to definitional problems with regulated data, duplicated privacy and security protections and a conceptually challenging regulatory framework. In conclusion, we suggest potential solutions that would assist with the operation of the CDR within Australia’s broader information privacy law framework, governed by the Privacy Act 1988 (Cth), which would also better align with the General Data Protection Regulation (GDPR).

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