Foreign companies face greater scrutiny over consumer protection
May 16, 2013 | BY
clpstaffA Bill to amend the law on consumer protection emphasizes data protection, advertising and recall policies. But ultimately the new Bill gives greater power to the authorities; something foreign companies need to watch out for
The Bill for Amendments to the PRC Law on the Protection of the Rights and Interests of Consumers (Draft) (中华人民共和国消费者权益保护法修正案 (草案)), from the National People's Congress (NPC) on April 28, follows a move by the Standing Committee of the NPC to pass a Decision creating the first nationwide legal framework for data protection.
The Decision on Strengthening the Protection of Online Information (关于加强网络信息保护的决定) was not a typical law, but it does have similar attributes given that it was issued by China's top legislator. The Decision calls for greater protection of private information online.
“The few general principles under the Bill are incredibly similar to the Decision,” said Michael Tan of Taylor Wessing in Shanghai. “The difference is that the Bill focuses on consumer protection, covering personal information both in the cyber world and in the real world, so it is broader in scope, but the same legal framework and philosophy is there,” he added.
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