ACCC Issues First Infringement Notice for CDR Breach, Fines BOQ for AUD 133,200

The ACCC (Australian Competition and Consumer Commission) has fined Bank of Queensland (BOQ) AUD 133,200 for breaching CDR (Consumer Data Right) rules by failing to provide a service enabling consumers' data to be shared.

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The CDR is an economy-wide data sharing programme that enables Australians to leverage the data businesses hold about them for their own benefit. The CDR was first rolled out to banking in July 2020 for the major banks, with all other banks required to share certain data by 1 July 2021. The transfer of consumer data is at the direction of consumers.

Under the CDR rules, BOQ was required to be in a position to share data for financial products, including savings accounts, term deposits and credit cards, by 1 July 2021. However, the bank did not meet this obligation on 1 July 2021 as required, prompting the infringement notice from the ACCC.

The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions in the CDR rules.

This is the first infringement notice the ACCC has issued for an alleged breach of the CDR rules.

The ACCC alleges that BOQ did not make the required services available until 13 December 2021, which meant that the bank's customers were unable to share their CDR data for more than five months after the date by which this 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," said ACCC commissioner Peter Crone. "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.”

Crone noted that 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 with this process.

The ACCC said that it is closely monitoring compliance with CDR obligations and providing support for participants to assist them in preparing for and entering the CDR programme.

A number of banks were delayed in implementing their CDR solutions, in part due to issues related to the Covid-19 pandemic and a shortage of skilled IT resources.