A bill to add action initiation to the Consumer Data Right has moved from the House of Representatives, where it was passed last month, to the Senate.  Action initiation through CDR allows a consumer to consent to an “accredited action initiator” initiating actions beyond requests for data sharing. This could involve “action service providers” switching accounts or products, making payments or updating contact details across multiple accounts on a consumer’s behalf. The addition of action initiation to the CDR was the key recommendation of the 2021 Inquiry into Future Directions for the Consumer Data Right. It has been at the top of the wish list of industry participants since CDR was launched. The explanatory memorandum accompanying Treasury Laws Amendment (Consumer Data Right) Bill 2022 says the Minister will declare the types of actions that can be initiated under CDR and the data holders that are to be action service providers. The Minister will also have power to determine whether fees can be charged for action initiation services. The extent of the ministerial power to make rules is designed to ensure the CDR is responsive to market and technological changes. Accredited action initiators will be accredited by the ACCC and will need to be accredited data recipients. Action services providers would be existing data holders. For payment initiation, authorised deposit-taking institutions will be the class of data holders that will become action service providers for variable recurring payments. To ensure that actions will only be initiated with a consumer’s valid request, the bill adds a new civil penalty that targets an accredited action initiator that purports to give a valid instruction for the performance of a CDR action where there was no valid request by the consumer.