This page is about a bill. That means that it's not the law yet, but some people want it to be the law. It could change quickly, and some of the information is just a draft.

Customer and Product Data Bill

Regulatory and enforcement matters - Prohibition against taking certain actions against customer

63: Prohibition against taking certain actions against customer

You could also call this:

“Companies can't punish you if they break data rules”

This part of the bill is about protecting customers when companies break certain rules. If a company doesn’t follow the rules about handling your data, they and other companies they work with can’t punish you for it.

The bill says that in certain situations, companies can’t do things like charge you extra fees, use your things as payment, or try to make you pay debts related to the mistake they made. This applies to the company that broke the rules and other companies they work with.

If another company loses money because they can’t charge you a fee, the company that broke the rules might have to pay them back. The other company can go to court to get this money if they need to.

The bill also explains what it means by “security interest”. This is when you use something you own as a promise to pay back money or do something. It doesn’t matter what you call it or who actually owns the thing you’re using as a promise.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS921389.


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“This part of the law explains when the rules about handling your information apply”


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“Don't pretend to be someone who can ask for or give special information”

Part 4 Regulatory and enforcement matters
Prohibition against taking certain actions against customer

63Prohibition against taking certain actions against customer

  1. The persons referred to in subsection (2) must not, in the circumstances prescribed in the regulations,—

  2. impose a financial penalty on a customer referred to in section 62 (C) in connection with the transaction (for example, a penalty fee or penalty interest); or
    1. exercise a right, power, or remedy under a security interest in connection with the transaction; or
      1. take steps to enforce a debt incurred in connection with the transaction.
        1. The persons are the following:

        2. the data holder or accredited requestor that contravened the duty as referred to in section 62 (A):
          1. another person that is a data holder or an accredited requestor (B).
            1. If, but for subsection (1), B would have been able to impose a financial penalty on C, A must reimburse B for the amount of the penalty in the circumstances prescribed in the regulations.

            2. B may recover the amount from A in any court of competent jurisdiction as a debt due to B.

            3. In this section, security interest means an interest in property created or provided for by a transaction that in substance secures payment or performance of an obligation, without regard to—

            4. the form of the transaction; and
              1. the identity of the person who has title to the collateral.