2022-04-11-普华永道-PRC_data_legislation_quarterly_update_Q1_2022_3页_281kb

In the first quarter of 2022, China saw accelerated data legislation developments, impacting TMT sectors through new regulations, enforcement actions, and compliance challenges.

• Cybersecurity Review Measures: The Cybersecurity Review Measures adopted in February 2022 mandate self-assessments for companies handling sensitive data or exceeding one million users, with severe legal consequences including fines, business revocation, and potential criminal liabilities for non-compliance.

• Algorithm Regulations: New Administrative Regulations on Algorithm Recommendations, effective since March 2022, enforce transparency and fairness by requiring internet platforms to inform users about algorithm deployment and provide opt-out options, addressing issues like information cocooning and discrimination.

• Protection of Minors: Draft Regulations on Cyber Protection for Minors released in March 2022 focus on safeguarding minors' personal information, following CCTV exposés on smart device safety. Key obligations include consent verification, impact assessments, and incident planning for manufacturers and sellers of smart products.

• Other Guidelines: In March and February 2022, new drafts were issued regulating internet pop-up windows, mobile notifications, and IoT security standards, banning harmful content and requiring content compliance.

• Compliance Advice: Companies are urged to monitor legal updates, establish comprehensive compliance systems, and promptly implement all new requirements from evolving data laws and regulations.

This rapid legislative pace creates significant compliance challenges for market participants.