Personal Data Privacy law takes effect in China
The new legal regime protecting online user data privacy came into force on 1st November, 2021. The new law is coined the Personal Protection Information Law, which is said to be the strongest consumer protection preconditions globally up to now. The maximum fine can reach 50 million Chinese Yuan ($7.8 million USD approx.) or 5 percent of an annual revenue of a company violating its provisions.
This law was passed in mid-August by the China’s Legislative Body- the National People’s Congress. It requires companies to permit users to opt out. The opt out right enable users to receive chosen advertising. Additionally, consent of users is the fundamental requirement for companies prior to collecting their personal information. Companies must inform their consumers while trying to share their personal data with other companies. And, such third companies are obliged to obtain user’s explicit consent.
The recent law has defined personal information on broader sense, which includes data relating to biometric and location.
Moreover, the new law has created new obligations for businesses operating in China i.e. all the personal information must be kept on servers which is located within China physically. This provision is just an expansion of China’s data security law of 2019.