In China, as of today, a new law is in place to better protect people’s online privacy. At the same time, the law serves as a means to monitor the tech sector in the Asian country more closely.
The Privacy Act was passed in August and states that the treatment of personal data should be limited to a “clear and reasonable” purpose.
The law lays down conditions under which companies may collect personal data, such as obtaining consent from the data subject. The new rules also include guidelines for the protection of data when transferred abroad.
Companies that break the rules receive a warning and have to stop collecting data. The Chinese authorities may also seize” illegal income”, writes the Hong Kong privacy watchdog PCPD.
Companies that are in violation and do not respond can be fined up to 1 million yuan. The person responsible for compliance with the law within the company may be fined between 10,000 yuan and 100,000 yuan.
For” serious ” cases, the Chinese government issues fines that can amount to 50 million yuan or 5 percent of the company’s annual turnover in the previous fiscal year. In addition, the government can force companies to cease their activities or withdraw their business licenses.