China’s data privacy law
The upcoming Personal Information Protection Law in China will limit luxury brands’ ability to sell to Chinese customers using their data.
The People’s Republic of China released a second edition of the proposed Personal Information Protection Law (“Draft PIPL”) on April 29, 2021. The public will comment on the Draft PIPL until May 28, 2021. Although the basis of this edition of the Draft PIPL remains the same as the previous version released on October 21, 2020, the amended documents include material amendments that concern luxury brands or any third party using the personal details of Chinese people. Here are a few of the articles in the draft that impact luxury brands both nationally and internationally: Article 16 allows the data processor to make it easy for data respondents to revoke their approval. Withdrawing consent does not affect any processing activity that occurred before the withdrawal of consent.
Article 22 adds more conditions for third-party data collection. If a third party’s data processing arrangement with the data processor does not become functional, is null, withdrawn, or terminated, the third party must return the personal information to the data processor or erase it. According to Article 38, the Cyberspace Administration of China will provide data processors with a standard contract for comparison and advice when entering into contracts with recipients outside of China that will enable them to transmit sensitive personal information to recipients outside of China. Article 49 adds clauses concerning the confidentiality of personal records of decedents, whose privileges under the Draft PIPL may be exercised on the decedent’s behalf by close relatives. Article 57 places requirements on data processors that offer basic web portal services to a “significant” number of customers. This includes responsibilities to provide an external, autonomous agency to oversee the collection of personal data. Nonetheless, the second edition of the Draft PIPL lacks a basic criterion for defining the protected data processors. For luxury brands, consumer consent will now become essential to collect Chinese data, inside and outside the borders of the People’s Republic. No dates have been announced for the passing of the law. However as we await the national’s comments and view on Draft PIPL, we advise international luxury brands to step up preparations for a new digital marketing environment.
By Keren Beya
@kerebear_5