OJK bans financial service providers from sharing consumer data

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The Financial Services Authority (OJK) has issued new regulations which, among other things, prohibit financial services providers from distributing consumer data.

“This prohibition is very vital because it should have become the default behavior of financial services providers,” deputy commissioner for consumer education and protection at OJK, Sarjito, said during an online media briefing, accessed from here on Friday.

The regulation (Number 6/POJK.07/2022) stipulates consumer and community protection in the financial services sector.

It prohibits the sharing of consumer data or personal information with other parties, he informed.

Service providers can also not force or coerce consumers into agreeing to share their personal data or information as a pre-condition for using products and services.

They have also been barred from using data or personal information of prospective consumers whose registration has been rejected by the business actors.

“This often happens. There are people who often complain to us, (saying) that they issued an application for something and got rejected, yet their data is everywhere. That should not happen. Never do something like this,” Sarjito warned.

The regulation also forbids financial services providers from using data and personal information of prospective consumers who withdraw applications for the use of their products and services, he added.

And they cannot use the data of consumers who have terminated the product and service agreement.

He explained that these prohibitions would not be imposed in the event that consumers give their consent, or it is required or stipulated by the laws and regulations.

“However, consumer approval (must not be) the result of coercion as has been prohibited by the regulation,” he said.

In case a service provider violates either the regulation on consumer data distribution or other rules laid down in the regulation issued by the Financial Services Authority (Number 6/POJK.07/2022), OJK would not hesitate to impose administrative sanctions by revoking its business license.

Source: Antara News