Legalchat December 2022

Legalchat Who's watching you as you shop

View this email in your browser

Your monthly update from Canterbury Legal

Who's watching you as you shop?

Dear *|FNAME|*,


Just a few more days to go in what has undoubtedly been an interesting year for most of us! 2022 sent us all challenges we might not have anticipated a year ago.

But here at the Canterbury Legal office, we’re certainly grateful for a lot of the good things that have happened this year.

We’ve been excited to welcome new team members and grow our litigation department. You’ll hear more from them in the new year.

It’s been a privilege to help more people into their first homes. Even in a less certain market, we see good things happening every week.

And generally, we’ve been proud to support our clients and their families and businesses achieve what they want to achieve. We know that when you’re in uncertain times or facing challenges, putting your trust in someone means a lot. We take that trust seriously. And as we enter 2023, we look forward to continuing to be there for you, for whatever you might need from us.

And before you switch the out-of-office message on and start prepping the Christmas pavlova, we’ve got one last collection of stories that caught our interest this month.

We'll be at the office until 5pm on Thursday 22 December, and will return for 2023 at 8:30am on Monday 16 January 2023. But as always, we'll be just an email or phone call away for any urgent needs over that period.

A new privacy issue to face: the rise of facial recognition technology in New Zealand

As you go about your Christmas shopping, it may not surprise you to hear that you’re tracked and monitored in many different ways.

  • There are the loyalty programmes that build a record of your spending.

  • There are the security cameras that watch you as you move through a store.

  • There’s the online technology that monitors the websites you visit and the things you search for.

  • And then there’s the curious family members trying to figure out what you’ve bought them for Christmas. (Or haven’t bought them).

Some of those are more acceptable than others. But there’s piece of tracking technology that the Privacy Commissioner has decided isn’t so acceptable is facial recognition technology (FRT).

FRT is a type of software designed to identify individuals based on their unique facial features. It uses algorithms to analyse and compare an image of a person’s face with a database of existing facial information.

If you’re reading this on a smartphone or laptop, you might have benefited from it just the past few minutes. Many phones and computers now use cameras to recognise their owner and unlock themselves accordingly.

But there are more worrying uses of the technology, and concern about its potential for abuse. Unlike your smartphone, facial recognition databases are often built without people’s knowledge or consent. For example, security cameras collecting information in public at a distance.

Also, the technology is far from perfect. The algorithms are not totally accurate, and appear to struggle to identify people with certain skin tones correctly.

Hence the Privacy Commissioner’s concerns that New Zealand’s existing privacy protections aren’t enough to cover FRT and other forms of biometric data. Following a 2021 position paper and an August 2022 consultation paper which received 100 public submissions, the Commissioner announced last Thursday that a Code of Practice to regulate biometrics is being explored. The next step is targeted engagement with relevant agencies and people in the new year about what might be in such a Code.

FRT surveillance already a reality in New Zealand


While the discussion of a Code of Practice is new in this country, FRT itself is already in use by private businesses. Foodstuffs North Island (New World, Pak ‘n Save, Four Square) revealed in 2018 that it was using it in some North Island stores to battle shoplifting, and in 2020, Stuff reported its use in casinos and The Warehouse.

But it’s Foodstuffs use of the technology that has drawn concern from the Office of the Privacy Commissioner and Consumer NZ. Consumer NZ last month confirmed 29 North Island Foodstuffs stores still use the technology as a crime prevention measure.

“We are seriously concerned that New Zealanders are having their sensitive biometric information collected and analysed while they go about their shopping,” said Consumer NZ chief executive Jon Duffy. “These shoppers may not know it is happening or understand the potential consequences of their data being collected in this way.

“We question whether the collection of customers’ biometric data is proportionate to the risk Foodstuffs is trying to address.

“The use of FRT raises significant privacy and ethical concerns. Aside from our sensitive personal information being captured without our knowledge, we also need to consider how our biometric data is stored once it is collected by a retailer.

“No one is immune from cybercrime and retailers must ensure their security is up to scratch to protect consumers from identity theft.”

Foodstuffs says that the technology is a trial to help keep its staff and customers safe and was working with the Office of the Privacy Commissioner (OPC) on its appropriate use. That included clear signposts at the doors of any supermarkets using the technology, and restricting its use to crime prevention.

The OPC said it recognised the importance of safety but added “it is not clear to our office how facial recognition technology is going to achieve this.”

“As a result, we have been counselling caution given the privacy intrusive nature of facial recognition technology and the inaccuracy and profiling risks involved.

“Any store using facial recognition technology must clearly inform customers about its use. Customers who are concerned about what these stores may hold on them should ask for access to this information. Customers who are concerned that their privacy has been breached or that their request for their information has been inappropriately denied should make a complaint to our office,” it said.

The OPC has asked Foodstuffs to provide details of the 29 stores using the technology, so it could confirm whether the use was consistent with the Privacy Act.

So, while it’s unlikely South Island supermarket shoppers or most businesses need to think about FRT just yet, it’s likely we’ll hear more and more about it in the coming months and years. And even if you’re not dealing in FRT, it’s a good reminder to take care with the information you collect as a business, and the information you give as a consumer. Feel free to run any of those privacy issues by our team in the new year.


Property managers likely to be regulated

Property managers play a huge role in the New Zealand housing market. They look after more than 40 percent of residential rental properties. The way they conduct themselves makes a big difference to both tenants and landlords.

Yet until now, the industry has had no formal regulation. That’s prompted concern from multiple groups. Tenants who feel like they are not treated well. Landlords who feel they are not given good service. Even property managers who feel they are let down by others in their own industry.

That’s about to change, with the Minister of Housing announcing legislation to regulate all residential property managers.

The proposed regulations will call for:

  • compulsory registration and licensing for individual property managers and property management organisations,

  •  training and entry requirements, 

  • industry practice standards, and 

  • a complaints and disciplinary process.

Per Cabinet, it is likely the Real Estate Authority will act as regulator, and Real Estate Agents Disciplinary Tribunal as a tribunal for complaints.

While many industry professionals have welcomed the move, some are calling for more detail on what the system will entail. The law will not apply to private landlords, which Renters United suggests is a surprise.

A Bill is anticipated to reach Parliament in May, with a first reading and Select Committee stage in mid-2023, and if successful, passage into law in mid-2024. Of course, with an election next year, that journey may require the support of all parties.

Deadline to meet Healthy Homes Standards extended

Speaking of rental compliance, the Government announced the same day that the deadline to comply with the Healthy Homes Standards is being extended by a year.

  • All private rental properties must comply with the standards by July 1 2025. This replaces the previous deadline of 1 July 2024.

  • In the case of new or renewed tenancies, private landlords must ensure their properties comply with the standards within 120 days. This is an increase from the existing 90 days.

  • Kāinga Ora and community housing providers must see their properties comply by 1 July 2024, an extension from the previous 1 July 2023 deadline.

The extension is attributed to the challenges in securing building materials and labour since COVID-19.

Monthly Housing Update

According to the REINZ House Price Index, Christchurch City house prices dropped 0.1% in November, compared with a drop of 1.4% nationwide.

Prices are down 7% from a year ago, compared with 13.7% nationwide.

But taking it back five years, prices are still up 8.4%, compared with 6.7% nationwide.

REINZ’s Property Report shows:

  • The number of property sales increased 5.2% from October

    • Down 30% from the same time last year

  • The days it takes to sell a property decreased four days from October

    • But increased seven days from November 2021.

Trade Me Property’s Rental Price Index suggests rent prices may be going in the opposite direction. It reported an increase in Canterbury’s median weekly rent of 9.5% between November 2021 and November 2022. The median weekly rent for 3-4 bedroom homes increased 12.3% to a record high of $595.

With rents increasing at that rate, and property prices stagnant or falling, we may see more renters making the leap to home ownership. That’s reflected in Trade Me’s Q3 Property Pulse Report, where 63% of prospective buyers felt it was a good time to buy. But will limited supply and rising mortgage rates thwart that?

It sounds like we end the year on an inconclusive note. But if the buyers and sellers coming to us are any indication, there are still good opportunities out there on both sides. If you feel now is the right time for you to buy or sell, chat with our conveyancing team. We’re happy to share our thoughts on what might be right for you.

Contact us to talk property

Thanks *|FNAME|*.

It's always a pleasure bringing you this each month, and a privilege to have you part of our wider Canterbury Legal community.

Have a safe, relaxing and joyous holiday season. We'll see you again in 2023, after we return to the office on 16 January. (But if anything urgent pops up for you in the meantime, we’re just an email or phone call away.)

Regards,

Clive, Grant and the Team at Canterbury Legal

Legal Tip💡

The holidays are usually relaxing, but Christmas itself can be stressful! Try not to let any disagreements escalate too far. But if they do... contact us if you need help!