New Zealand urged to boost transparency in data use

The Tech Users Association of New Zealand has called for a shift to "active agency" in how organisations use personal data, setting out the position in a new policy paper on transparent data use.

It argues organisations should move away from relying on long privacy policies and one-off consent processes, saying people need clearer information and more direct control over how their data is used.

The paper is part of the group's 2026 policy programme and comes as data use expands across digital services and artificial intelligence tools. TUANZ says New Zealand has strengthened digital trust through changes to the Privacy Act and the introduction of the Consumer Data Right, but public expectations are rising alongside the wider use of data-driven systems.

According to the association, most New Zealanders are now knowingly using AI-enabled services, while expectations around privacy remain strong. Trust is becoming a deciding factor in whether consumers engage with organisations and adopt new technologies, it says.

At the centre of the proposal is what TUANZ describes as active and informed agency. Under this approach, people would better understand how their information is handled and make choices at the point where data is collected or used.

Paul Littlefair, Chair of TUANZ, said current settings are no longer enough as data use becomes more complex.

"New Zealand has taken important steps to strengthen digital trust," Littlefair said. "Recent updates to the Privacy Act and the introduction of the Consumer Data Right are improving transparency and giving people more control. But as data use accelerates, particularly with the growth of AI, expectations are rising just as quickly."

Four proposals

The group outlined four areas where it wants action from government and industry. The first is a requirement for clearer explanations when algorithms are used in decisions that affect people's lives, such as lending or insurance.

Organisations should be required to give a plain-language account of how those systems reach decisions, rather than relying on opaque models that cannot be explained to consumers, TUANZ says.

A second proposal is the creation of standardised "data nutrition labels". These would present data practices in a visual format, allowing people to compare how organisations collect, use and share information without reading lengthy privacy notices.

The paper also calls for wider individual control over data sharing. TUANZ wants the Consumer Data Right extended beyond banking and electricity so people can authorise third parties to use their data in other sectors when seeking better deals or alternative services.

It also says users should be able to withdraw consent more easily across platforms through universal opt-out signals, rather than managing separate permissions with each service provider.

The fourth proposal focuses on Māori data sovereignty. TUANZ says New Zealand's data framework should reflect Te Tiriti o Waitangi, and that Māori data should remain subject to Māori governance, alongside the use of Ngā Tikanga Paihere as guidance for ethical data use.

Trust and control

Littlefair said the issue is not only legal compliance, but how organisations see their role in handling information entrusted to them.

"Organisations must move from viewing themselves as owners of data to acting as kaitiaki, trusted stewards," Littlefair said. "That means no surprises, clear communication and putting people in control."

The association argues this shift would support stronger engagement with digital services by reducing uncertainty around data use. In its view, clearer standards could help organisations build confidence among consumers who are becoming more cautious about how personal information is processed, especially when automated systems are involved.

The point is also tied to economic policy. TUANZ says transparent data practices should be seen as part of the conditions needed for wider digital adoption, rather than as a narrow regulatory issue.

Littlefair linked public confidence in data use to people's willingness to participate in digital markets and use emerging technologies.

"Trust is a critical driver of digital adoption," Littlefair said. "When people understand and feel confident in how their data is used, they are far more likely to engage, share and adopt new technologies. That creates the conditions for innovation and growth."