A New Era for Consumer Data in New Zealand

The Customer and Product Data Act 2025 (CPDA2025) has officially passed into law, receiving Royal Assent on 29 March 2025, introducing the "consumer data right".

What does it mean?

● Consumer Empowerment – Consumers now have the right to request and share their data with accredited third parties, providing greater control over their own information. This framework is similar to the CDR system in Australia.

● What Data is Covered? – The law applies to both customer data (personal information like financial transactions) and product data (e.g., product pricing, features, and availability).

● Industry-Specific Regulations – While the CPDA2025 lays the groundwork, additional sector regulations will follow, starting with banking (by late 2025), and expanding to other sectors such as electricity .

● Action Initiation – A notable feature of the CPDA2025 is the introduction of “action initiation,” allowing accredited entities to perform actions on behalf of consumers, such as initiating payments or managing financial transactions.

● Consequences – The Act includes civil penalties for non-compliance, along with dispute resolution mechanisms, ensuring strong protections for consumers.

● Global Implications – The CPDA2025 has extraterritorial reach, meaning it applies not only to businesses based in New Zealand but also to international businesses that operate here.

This is a big deal for data portability, consumer rights, and the digital economy in New Zealand.