The Personal Information Protection Law - in Effect Nov. 1st!
Breaking News! The PIPL will be enacted on Nov 1st.
China’s Personal Information Protection Law (PIPL) has been on many companies’ minds since the first draft was submitted in 2020. We all thought the law would be enacted in 2022 but it looks like things got accelerated and the new official date is now November 1st, 2021.
What you should know?
The PIPL is in many ways, very similar to the GDPR. So, it shouldn’t come as a surprise or make your life too difficult. But there are a few important things to note:
1. Collection of information can be done by either electronic or physical means.
2. Follow the simple guideline of asking for consent; make sure you explain what the information you are asking will be used for and how. Try to collect only the information necessary for your business’s needs, and store it for the shortest time possible.
3. It is the company's responsibility to ensure that all personal data handling processes are well secured.
4. Transferring data outside of China will be regulated under the new law. This means that in case you need to transfer information of Chinese individuals outside of China, you will need to pass a security assessment and make sure you comply with other requirements as well.
5. The law leaves room for local governments to draft more specific rules and regulations. We recommend you check with the local government where your business is registered, and confirm the local compliance requirements.
What you should do?
You can start by conducting a data mapping – review all your company's data-related processes and make sure you understand how you collect data, where you store it, for what purposes and whose access to the data is allowed.
Consult with an expert to ensure you are not missing blind spots and are fully aware of the implications of the PIPL and the DSL (Data Security Law) on your operation.
Run a security audit and make sure all your internal processes are secured. We also recommend you appoint a person in charge of these processes and also for educating others in your company about their responsibilities.
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