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Personal Information Protection Law (PIPL)

View Law Text
Maximum Fine
¥50M or 5%
Scope
National
Regulator
CAC
Storage
Local

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Overview

The Personal Information Protection Law (PIPL) is China's first comprehensive law specifically regulating personal information protection. It establishes strict requirements for collecting, processing, and transferring personal information.

Key Facts

  • Effective since November 1, 2021
  • Enforced by Cyberspace Administration of China
  • Applies to processing of PI within China and overseas processing targeting Chinese individuals

PIPL Rules

Extraterritorial Scope

PIPL applies to processing of personal information of individuals in China, regardless of the processor's location.

Requirements

  • Establish China presence or representative
  • Register with authorities
  • Maintain compliance documentation
  • Submit to regulatory oversight
  • Implement local data storage

Examples

  • Local representative appointment
  • CAC registration process
  • Cross-border compliance measures
  • Data localization implementation

Processing Principles

Core principles governing the processing of personal information under PIPL.

Requirements

  • Lawfulness and fairness
  • Purpose specification
  • Data minimization
  • Transparency
  • Accuracy and quality

Examples

  • Clear privacy notices
  • Purpose limitation policies
  • Data retention schedules
  • Quality control measures

Individual Rights

Rights granted to individuals regarding their personal information.

Requirements

  • Right to know and decide
  • Right to access and copy
  • Right to portability
  • Right to correction
  • Right to deletion

Examples

  • Rights request procedures
  • Access request forms
  • Correction mechanisms
  • Deletion protocols

Compliance Requirements

Data Localization Requirements

Organizations must store personal information collected in China within mainland China.

Implementation Steps

  • Assess data storage locations
  • Implement local storage solutions
  • Document data flows
  • Obtain necessary approvals
  • Monitor compliance

Required Documentation

  • Data mapping records
  • Storage location inventory
  • CAC approvals
  • Cross-border assessments
  • Compliance reports

Security Protection Obligations

Implement comprehensive security measures to protect personal information.

Implementation Steps

  • Conduct security assessments
  • Implement technical measures
  • Establish management systems
  • Regular security testing
  • Incident response planning

Required Documentation

  • Security policies
  • Assessment reports
  • Test results
  • Incident response plans
  • Audit logs

Enforcement & Penalties

Administrative Penalties

The Cyberspace Administration of China (CAC) can impose significant penalties for PIPL violations.

Penalty Categories

Organizational Fines
Up to ¥50 million or 5% of annual revenue
For serious violations of PIPL requirements
Individual Liability
Up to ¥1 million
For responsible individuals
Business Suspension
Operations halt
Suspension or termination of business activities

Example Cases

Didi Global
¥8.026 billion
2022 - Data security violations and illegal collection of user information
Alibaba
¥18.2 billion
2021 - Anti-monopoly law violations including data misuse

Criminal Penalties

Serious violations may result in criminal prosecution.

Penalty Categories

Criminal Charges
Imprisonment
Criminal liability for severe violations
Personal Blacklisting
Industry Ban
Prohibition from industry positions
Reputational Damage
Public Disclosure
Publication of violations

Example Cases

Data Broker Case
Criminal Prosecution
2022 - Illegal sale of personal information
Healthcare Data Breach
¥2 million + Criminal Charges
2023 - Unauthorized access to medical records