franchise.co.nz – PUTTING PEOPLE IN BUSINESS
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If you’re customer focused and in
search of a franchise business that can
provide stability and consistent returns,
now is an exciting time to join Liquorland.
Liquorland is New Zealand’s premium liquor
franchise with over 170 stores nationwide.
Liquorland benefi ts include:
*Shopper Tracker Statistics 2024, Reader’s Digest customer
preferred Liquor Retail Chain Gold Award 2025 (10 years running)
If you’re interested in becoming a Liquorland
franchisee please email Dave Yurak at
davey@liquorland.co.nz
Excellent supplier terms
Support offi ce expertise in operations,
merchandise, fi nance, IT and marketing
Annual profi t share rebate
Airpoints, Click & Collect and Online Delivery
Ongoing product and service training
National promotional and
marketing programme
Over 40 years’ experience as a Franchisor
Alignment with Foodstuff s NZ
New Zealand’s most preferred liquor retailer*
Join
Franchise Management
BE CYBER SAFE
Wynn Williams on navigating AI, security
and cyber washing in business
Artificial intelligence (AI) is rapidly transforming the way franchises operate,
offering new efficiencies, insights and capabilities. However, as AI becomes
more embedded in digital infrastructure, it introduces new security risks
and regulatory challenges. At the same time, the rise of “cyber washing”,
overstating or misrepresenting the security or AI capabilities of products and/
or services, poses significant risks for NZ businesses and consumers.
AI technologies are integral to modern cybersecurity strategies. By leveraging
machine learning and data analytics, AI systems can continuously monitor
networks, detect anomalies, and respond to potential threats in real time.
While AI enhances cybersecurity, it also introduces new and complex risks.
The same technologies that help businesses can be exploited by attackers.
Cybercriminals are using AI to automate attacks, generate convincing
phishing messages, and create deepfakes that can deceive individuals and
businesses. AI tools can also be used to probe systems for vulnerabilities at
unprecedented speed and scale, allowing attackers to tailor their strategies
in ways that outpace traditional defences. Franchised businesses must take a
more proactive and adaptive approach to security to combat this duality.
Understanding cyber washing
Cyber washing can lead customers into a false sense of security, expose
businesses to regulatory action and/or legal claims, and undermine trust in
the market by practices such as:
• marketing software as “AI powered” when it uses only basic automation or
rule based logic;
• claiming compliance with security standards or certifications that have not
been independently verified; and
• overstating the effectiveness of security features, such as “unbreakable
encryption” or “100% protection”.
Regulatory framework and best practice
New Zealand’s legal framework for cybersecurity and data protection is primarily
governed by the Privacy Act 2020 (PA), which requires businesses to implement
reasonable security safeguards and to notify the Privacy Commissioner and
affected individuals in the event of a notifiable privacy breach. With no AI-
specific legislation in New Zealand, existing privacy laws apply, and the
Privacy Commissioner has issued guidance on the responsible use of AI.
Businesses must also be mindful of their responsibilities under the Fair
Trading Act, which prohibits misleading and deceptive conduct. This applies
to marketing claims relating to cybersecurity or AI capabilities.
To navigate the risks associated with AI, security and cyber washing,
franchisors and franchisees should:
• ensure all marketing and technical claims about AI and security features
are accurate, evidence based, and not misleading;
• adopt industry best practices for cybersecurity, including regular risk
assessments, staff training, and incident response planning;
• stay up to date with guidance from the Privacy Commissioner, the National
Cyber Security Centre and other relevant authorities;
• maintain clear documentation of how AI is used, its limitations, and the
security measures in place; and
• regularly review and update AI and security practices to keep pace with
evolving threats and
regulatory expectations.
As AI and the regulatory
landscape continue to
evolve in New Zealand,
franchised businesses
must resist the temptation
to engage in cyber
washing and ensure that
their claims about AI and
security are both accurate
and substantiated.
Wynn Williams
www.wynnwilliams.co.nz
Contact
Katrina Hammon
09 300 2647
021 221 8847
katrina.hammon@
wynnwilliams.co.nz
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