The New Zealand Government has announced its agreement to establish a consumer data right framework for the benefit of its citizens.
According to Commerce and Consumer Affairs Minister David Clark, consumers should be in charge when it comes to how their personal information is used by third parties.
A consumer data right (CDR) is a mechanism that requires data holders to safely and securely share data with third parties following consent from the customer, allowing New Zealanders to gain access to a wider range of products and services that will better meet their needs.
“Any data shared through the consumer data right will only take place with a person’s informed consent and would be strictly used for the reasons agreed upon. For example, if a person was seeking financial advice, they could ask their bank to share data, such as transaction information, with their chosen adviser,” Minister Clark said.
“The businesses and services wishing to receive this data would also have to meet a number of safeguards to ensure the information could be handled safely and securely.”
The new consumer data right framework will work hand-in-hand with the Digital Identity Trust Framework that was announced earlier this year. The Digital Identity Trust Framework sets out the rules for the delivery of digital identity services.
After a recent consultation on options for a consumer data right, the New Zealand Government is now in the process of building a regulatory regime.
“The consumer data right will be rolled out on a sector-by-sector basis to ensure that the detailed requirements work in practice. We will look to align our system with the Australian model introduced in 2019,” Minister Clark said.
Officials are currently carrying out work to identify which sectors should be considered for designation first.
The New Zealand Government also aims to create a second round of detailed policy decisions on the consumer data right framework later in 2021, hoping to introduce legislation in 2022.