Plain language law

New Zealand law explained for everyone

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

Regulated data services - Additional obligations - Electronic system

30: Offence for failing to comply with notice to test electronic system

You could also call this:

“You could get in trouble for not testing computer systems when asked”

If this bill becomes law, you could get in trouble if you don’t follow the rules about testing electronic systems. There are two main ways you might break this law:

First, if you’re asked to test an electronic system and you refuse or don’t do it without a good reason, you could be breaking the law. This request to test would come from a notice under section 29.

Second, if you do test the system but give a report that you know isn’t true or is misleading about something important, that’s also against the law.

If you’re found guilty of breaking this law, you might have to pay a fine. The amount you’d have to pay depends on whether you’re an individual or not. If you’re an individual, the fine could be up to $100,000. For any other case, like if it’s a company, the fine could be up to $300,000.

Remember, this is part of a proposed law, so it’s not in effect yet. It’s just explaining what might happen if the law is passed.

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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=LMS938973.

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29: Chief executive may require data holder to test electronic system, or

“The boss can ask companies to check if their computer systems follow the rules”

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31: Data holders must comply with requirements for requests, providing services, and making information available, or

“Data keepers must follow new rules for handling information and requests”

Part 2 Regulated data services
Additional obligations: Electronic system

30Offence for failing to comply with notice to test electronic system

  1. A person commits an offence if the person—

  2. refuses or fails, without reasonable excuse, to comply with a notice under section 29; or
    1. in purported compliance with a notice under section 29, gives a report to the chief executive knowing it to be false or misleading in a material particular.

      1. A person that commits an offence against subsection (1) is liable on conviction to a fine not exceeding—

      2. $100,000 in the case of an individual:
        1. $300,000 in any other case.