Good News: The Personal Information Protection Law Takes Effect

Source: Xinhua.

The Personal Information Protection Law of the People’s Republic of China took effect on 1 November 2021. It makes clear that excessive collection of personal information and big-data price discrimination are not allowed, regulates the processing of sensitive personal information such as face data, and improves complaint and reporting mechanisms, fully responding to social concerns and providing strong legal protection for solving hot and difficult problems in personal information protection.

The law has 8 chapters and 74 articles, further refining and completing, on the basis of existing laws, the principles that personal information protection must follow and the rules for processing. Liu Quan, director of the cybersecurity institute at the China Center for Information Industry Development, told Economic Information Daily that the law builds the basic legal framework for protecting personal rights, provides concrete compliance guidance for information processors, marks a milestone in China’s personal information protection, and further completes the country’s legislative system in the data field.

On hot issues such as apps over-collecting personal information and cameras and face recognition devices in public places, the law responds directly: processing personal information must have a clear and reasonable purpose, be directly related to that purpose, and take the approach that least affects personal rights and interests; installing image capture or identity recognition devices in public places requires prominent notice signs; and the personal images and identity information collected may only be used to safeguard public security.

On “big-data price discrimination”, where companies increasingly analyse and profile consumers for commercial marketing, the law expressly prohibits it: information processors using personal information for automated decision-making may not impose unreasonable differential treatment on individuals in transaction prices or other terms.

Experts say the law will promote lawful, reasonable and effective use of information and data and provide legal safeguards for the healthy development of the digital economy. Pan Helin of Zhongnan University of Economics and Law said the law clarifies the rights and interests attached to personal information: internet platforms will need user authorisation to use personal information and will bear more responsibility for protecting it in use and storage.

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