40
Franchise New Zealand | Winter 2026 | Year 35 Issue 02
On 1 May 2026 a new privacy principle came into force under the New
Zealand Privacy Act 2020 (Act): the Information Privacy Principle 3A (IPP3A).
Franchisors and franchisees should be aware of these important changes for
indirect collection of personal information.
The new IPP3A expands on the existing requirement to notify individuals of
specific information when collecting their personal information. Common
examples include a franchisor obtaining a prospective franchisee’s credit
history from a credit reporting agency, or a franchisee verifying a job
applicant’s employment with previous employers.
The IPP3A notification requirements include advising the individual:
• that personal information has been collected, and what it is;
• the purpose for collection;
• the persons or entities to whom the personal information will be disclosed;
• the name and address of the business that is collecting the personal
information and the business that holds the personal information;
• whether collection is authorised or required by which applicable law; and
• how the individual can access and correct their personal information.
Businesses must take reasonable steps to notify individuals of the above.
What is “reasonable” depends on the circumstances, but you should consider:
• how sensitive the personal information is;
• the possible harm or negative effects on the individual if not informed;
• any particular requirements the individual may have, such as language or
accessibility needs; and
• practical factors, including time and expense, while noting that difficulty or
cost by itself does not relieve an obligation to comply.
Notification can occur before collection, or as “reasonably practicable”
following collection, which again depends on the circumstances.
Individuals may be notified of IPP3A matters through any means, provided
the communication is clear and easy to comprehend. Most commonly,
businesses will use their privacy policy, and subsequent shorter reminders.
Various exceptions to the IPP3A notification requirements include where:
• the individual is already aware of the disclosure;
• the personal information is publicly available;
• non-disclosure would not prejudice the interests of the individual;
• telling the individual would prejudice the purpose of collection or is not
reasonably practicable; or
• the personal information will be used in a way that does not identify
the individual.
These exceptions should be applied cautiously, and if relied on, the decision
and supporting evidence should be properly documented. Businesses have
flexibility in determining how they comply with IPP3A and there are a variety
of ways to approach it, including:
• identifying internal flows of indirect collection of personal information;
• assessing each instance of indirect collection to determine where
notification is required, or whether exceptions apply;
• where no exceptions apply, the method of notification under the IPP3A;
• updating privacy policies and/or contracts, and establishing new systems
to support compliance at franchisor and franchisee level; and
• training employees on new obligations.
A one-size-fits-all privacy
policy adopted by the
franchisor and its franchisees
may not be appropriate, given
they each collect and use
personal information from
different sources and for
different purposes. If you
have any questions about
how the IPP3A applies to
your business, or need
guidance on compliance,
please get in touch.
Wynn Williams explains what franchises need
to know about new privacy law changes
PRIVACY PRINCIPLE
Franchise Management
Wynn Williams
www.wynnwilliams.co.nz
Contact
Katrina Hammon
09 300 2647
021 221 8847
katrina.hammon@
wynnwilliams.co.nz
Advertiser Info
Get the right advice. Talk first with New Zealand’s
longest established, largest and most award
winning team. Work with a company engaged on
major projects with many of the biggest and best
emerging names in the franchise sector.
Call Dr Callum Floyd (CFE) 09 523 3858 or email
callum@franchize.co.nz www.franchize.co.nz
Brilliant Commercial Cleaners
Six times winner
‘Service Provider of the Year’
Westpac New Zealand
Franchise Awards
Thinking of
franchising
or licensing
a business?
Improving an existing
network?
Get award
winning help
at every step
Franchising & Licensing Strategy
Franchising Feasibility & Model
Franchise Manuals
Franchise Marketing
Franchise Management Training (CFE)
Franchise Reviews
Franchisee Satisfaction Surveys
Franchise Advisory Councils
International Franchising
A complete
franchising
service: