The Privacy Amendment (External Dispute Resolution Scheme—Transitional) Regulation 2014 provides a temporary 12 month exemption from 12 March 2014 from the external dispute resolution scheme membership requirement under the Privacy Amendment (Enhancing Privacy Protection) Act 2012 for utilities and commercial credit providers.

The purpose of the EDR requirement is to ensure the quick, low-cost handling of consumer complaints. Utilities (water, gas and electricity providers) and commercial credit providers (to the extent that they access the consumer credit reporting system) are considered credit providers under the Privacy Act.

From 12 March 2015, any utility or commercial credit provider that is not a member of a recognised EDR scheme will be unable to participate in the credit reporting system.

The exemption for utilities has been given to permit States and Territories to make necessary legislative or administrative changes in their jurisdictions to enable State and Territory ombudsman services to meet their obligations under the amended Privacy Act from 12 March 2015.

The exemption for commercial credit providers has been given to permit a solution to be found for those companies that otherwise will not obtain consumer credit information in making commercial credit lending decisions.

If a permanent solution is unable to be found prior to 11 March 2015, the requirements in subparagraph 21D(2)(a)(i) of the Privacy Amendment Act will apply to commercial credit providers.