New Law Empowers Kiwis with Data Control, Promises Better Deals and Innovation

In addition to giving consumers more control, the Bill opens up new opportunities for tech innovators, fintech companies, and data-driven startups.

In a landmark move for consumers, the New Zealand Government has passed the Customer and Product Data Bill, a sweeping piece of legislation designed to empower individuals by giving them greater control over their personal data. The law paves the way for more open, transparent, and competitive markets in essential service sectors such as banking, electricity, telecommunications, and potentially more in the future.

A New Era of Consumer Power

Commerce and Consumer Affairs Minister Scott Simpson hailed the passing of the Bill as a "monumental step" for New Zealanders, saying it will fundamentally change how consumers interact with service providers.

“For too long, accessing and using your own data has been far too difficult,” Simpson said. “Whether it’s applying for a mortgage or trying to switch electricity providers, consumers have had to jump through unnecessary hoops. That’s about to change.”

The new law will allow consumers to securely share their personal data with third parties of their choice—such as apps or services that help compare deals, manage finances, or switch providers—without the current friction and roadblocks.

Open Banking Set to Launch in 2025

One of the first industries set to benefit from the new framework is banking, with the government aiming to roll out open banking by the end of 2025—well ahead of the June 2026 target originally set by the Commerce Commission.

Open banking will enable consumers to easily share banking data like transaction history and account balances with approved third parties. This could significantly streamline processes such as applying for loans, accessing better interest rates, or using financial management tools.

Simpson noted that the push for open banking was directly recommended by the Commerce Commission following a detailed market study into the sector, which identified barriers to competition and innovation.

Electricity Sector Next in Line

Next on the government’s agenda is the electricity sector, with plans underway to implement what’s being dubbed open electricity. This will make it easier for consumers to compare plans and switch providers, ensuring they are not overpaying for essential services.

Currently, many electricity retailers are reluctant to share usage data, making it difficult for comparison platforms like Powerswitch to provide accurate and comprehensive information. The new legislation will mandate that companies share data in a standardized and secure way, giving consumers the information they need to make informed choices.

Data Portability Will Break Down Market Barriers

Beyond banking and electricity, the Bill is designed with scalability in mind. It sets up a legal and technical framework that could be expanded to other markets, such as telecommunications, insurance, and even retail, where data portability could drive competitive pricing and more customized services.

A recent Commerce Commission report highlighted that almost a third of mobile and broadband users had not switched providers—despite better offers being available—simply because the process was too difficult. This legislation aims to remove that friction, making it easier for consumers to switch and save.

Boosting Innovation and the Tech Economy

In addition to giving consumers more control, the Bill opens up new opportunities for tech innovators, fintech companies, and data-driven startups.

“Businesses have been sitting on vast troves of consumer data with little incentive to make it accessible,” Simpson said. “Now, with clear legal backing and technical standards, innovative companies can build tools that help people get better deals, track spending, reduce power usage, and more.”

He added that this would contribute to economic growth by reducing inefficiencies and fostering a more vibrant and competitive marketplace.

Consumer Rights at the Forefront

At its core, the legislation reaffirms that data generated by consumers belongs to consumers—not the companies that collect it. With secure APIs and standardized formats, data sharing will happen under strict privacy and cybersecurity protocols, ensuring that consumer information is both safe and accessible.

“This is about putting power back into the hands of the people,” Simpson said. “It’s their data, and they should be able to use it in ways that benefit them.”

Looking Ahead

With open banking on the immediate horizon and electricity soon to follow, the Customer and Product Data Bill is set to reshape how New Zealanders engage with the services they rely on daily.

Minister Simpson concluded, “We’re giving consumers the tools they need to demand better, switch faster, and save more. I am excited to see the competition, choice, and innovation that this will unleash across the country.”