Bank of Queensland has paid a $133,200 fine for allegedly breaching Consumer Data Right (CDR) rules.
BOQ paid the penalty after it was issued an infringement notice by the Australian Competition and Consumer Commission (ACCC) for its failure to provide a service enabling consumers’ data to be shared. This is the first time that the notice has been issued by ACCC for an alleged breach of the CDR rules.
The CDR enables Australians to leverage the data businesses hold about them for their own benefit. The law was first rolled out to banking in July 2020 for the major banks, with all other banks required to share certain data by July 1, 2021.
Under the CDR rules, BOQ was required to share data for financial products, including savings accounts, term deposits, and credit cards by July 1, 2021 – an obligation the ACCC alleged the bank did not meet.
BOQ only made the required services available by Dec. 13, 2021, which meant the bank’s customers were unable to share their CDR data for more than five months after the date by which the service was required to be available to them.
“Under the CDR, consumers have a right to safely and securely share certain data with accredited providers, including fintech firms and other third parties, who in turn can use that data to create better customised products and services for the consumer,” ACCC Commissioner Peter Crone said. “For the CDR to work effectively for consumers, participants, including all banks, must meet their data sharing obligations within the timeframes set by the regulations. In the current environment of rising interest rates, consumers benefit from greater access to information and tools to help them compare products and make informed decisions about switching banks, and the CDR assists this.”
ACCC closely monitors compliance with CDR obligations and assists participants in preparing for and entering the CDR program.
“As it is rolled out, the CDR will increase consumer choice and promote the innovation needed to improve competition in financial services and other areas. It will play a central role in enhancing productivity,” Crone said.
Non-compliance with CDR obligations can result in administrative outcomes, enforceable undertakings, infringement notices, suspension or revocation of accreditation, or commencing court proceedings.
