The government in New Zealand is proposing the establishment of a right to allow consumers securely share data held about them with trusted third parties.
The other party could be another product or service provider, or a separate entity such as a fintech, with the information used for the person’s benefit.
“A consumer data right will provide significant benefits for consumer welfare and economic development,” the government said.
“Over time, it will give individuals and businesses access to a wider range of products and services, reduce search and switch costs, facilitate competition, encourage innovation, increase productivity and help build the digital economy.
“A consumer data right will also strengthen existing privacy protections by giving consumers greater choice and control of their data.”
They will be able to consent to an accredited person reading their data or initiate an action by, for example, allowing a payment provider to transfer bank funds to a business’s bank account when paying for goods or services.
Implementation will be on a sector-by-sector basis, with the government designating individual markets, industries and segments to which it will apply starting later this year.
Rules, standards and measures for enforcing the consumer data right will also be drawn up. A bill implementing the consumer data right will be introduced to Parliament next year.
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