China - new measures clarify requirements for companies when dealing with consumers’ personal information

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China: New measures clarify requirements for companies when dealing with consumers’ personal information

Published 7 January 2015

New measures released by China’s State Administration for Industry and Commerce in January, which are due to take effect on 15 March 2015, provide guidance to companies as to how companies should collect, use and protect consumer personal information.

The ‘Measures on Penalties for Infringing Upon the Rights and Interests of Consumers’ (the Measures), which flesh out and clarify China’s Consumer Rights Protection Law, including introducing a definition of ‘consumer personal information.

Infringement of the Measures may result in harsh penalties, particularly in the case of illegal earnings, with the power to impose substantial fines. Such penalties are in addition to any civil liabilities that may arise as a result of mishandling consumer information.

Copy of the Measures (Chinese).

What action could be taken to manage risks that may arise from this development?

If your company operates in China, it should ensure that it complies with the Measures when handling consumer data in China and should keep up to date with further legal developments in this area as it continues to evolve.

If your company operates in Denmark, it should ensure that when it carries out personnel administration data is handled in accordance with these requirements.

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