Customers to benefit from easier access to their information.
The Customer and Product Data Bill has passed in parliament, according to Commerce and Consumer Affairs Minister Scott Simpson. This legislation aims to give customers greater ownership of their data, making it easier for them to shop around for the best deals on essential services such as banking and electricity.
As a result of this bill, open banking is expected to be operational by the end of the year, with regulations specific to the sector to be confirmed in the coming weeks. The next step will be the introduction of open electricity, with possibilities for other sectors in future.
The data has always been available but businesses have had little incentive to share it. This bill aims to change that, putting power back into the hands of consumers. Commerce Commission research suggests that nearly a third of mobile and broadband users do not switch providers due to difficulties in accessing their information.
The introduction of this legislation is timely, with recent media reports highlighting the need for consumer data regimes. Mr Simpson believes that this will lead to greater competition, choice, and innovation, ultimately benefiting Kiwi consumers.