Sims was addressing the Consumer Policy Research Centre’s Consumer Data Conference in Melbourne on Monday.
He said the consumer watchdog would have the lead role in the making of rules, consumer education and enforcement of CDRs.
“The consumer data right is essentially a data portability right,” Sims said.
He cited the example of banking, the first industry to be designated under the CDR, and explained how existing customer data held by banks could benefit home-owners.
“It is often difficult and costly for borrowers to compare the offers of mortgage providers,” Sims said.
Under the CDR, “banks will make some data, such as customers’ transaction details, available to the customer or the customer’s chosen data recipient".
“Consumer data rights will reduce the cost to borrowers of discovering and comparing offers.”
Sims said privacy and security would be paramount when developing the concept of the CDR, adding that the ACCC would co-ordinate with the Office of the Australian Information Commissioner on privacy.
“Robust privacy protection and information security will be a core feature of the CDR,” he said.
The data “can only be accessed by trusted parties who have the customer’s consent to access their data.”
Sims said the ACCC had created a dedicated Consumer Data Right Branch and work was underway with a framework paper on the data rules expected for public consultation in August.
“We will also conduct consultation work with consumers and businesses,” he said.