The proposed law allows customers to safely access and exchange data held about them businesses
The Ministry of Business, Innovation and Employment (MBIE) has opened a public consultation on the exposure draft of the Customer and Product Data Bill, allowing customers to safely access and exchange data held about them by businesses.
When customers interact with businesses, such as banks, power companies, and mobile phone companies, data is created about them. This "customer data" is held by businesses and is protected by business security measures. The draft law will give customers more control over their data, allowing them to safely and securely access, manage, and share this data with others.
Glen Hildreth, Manager of Consumer Policy at MBIE, said, "Each time customers interact with businesses, data is created about them. Used in the right way this data can provide valuable insights to help customers access and compare products that better meet their needs."
This data could be used to provide tailored advice, personalised product recommendations, and analyse applications for services. The bill fosters innovation, enhances competition, boosts productivity and efficiency, and saves people time and effort.
The proposed legislation builds upon international experiences and incorporates them into a New Zealand context. It works alongside existing privacy protections provided by the Privacy Act and prioritises the principles of trust and consent. Under the bill, businesses seeking access to customer data must obtain accreditation, and data exchanges will only be permitted with the customer's explicit consent.
The rollout of the legislation will occur gradually across different sectors of the economy, beginning with the banking industry.
"Banking will be the first sector to be designated, building on existing steps taken by the banking industry," Hildreth said.
The introduction of the Consumer and Product Data Bill to the House is expected to occur before the year's end, aligning with the government's decision to establish a consumer data right. The public consultation period for the draft bill is open until 24 July.
