With fines and penalties (such as potential shutdown of company operations) looming in November of this year, some companies are opting to bail out of China rather than even attempt to comply with the slew of new data regulations.
Data Protection
Certain types of personal data are very valuable to criminals, and can be very damaging to an individual or business if it falls into the wrong hands. As the world becomes more digital and more connected, more of this sort of data is generated and passed between various sources on a regular basis.
Government regulations and supervisory authorities aren’t just about keeping irresponsible parties in line. They also provide vital security guidance to every type of organization that handles sensitive personal, business or government information.
Data protection regulations also ensure that the end user has a transparent view of and a say in the processing of personal data. These safeguards play a significant role in everything from the preservation of civil rights to ensuring that democratic institutions function properly.
Some types of personal data are clear candidates for regulation: medical records, banking information, national ID numbers and so on. But some of these regulations also cover items that might seem relatively innocuous at first glance: home addresses, email addresses, website profile information and so on. For example, the European Union General Data Protection Regulation (GDPR) has stipulations about anything that is unique to an individual to include phone numbers and social media accounts. People have varying levels of privacy preference with these items, but they are often protected by regulation because they can be used for targeted scams and attempts at identity theft.
Given that regulations often take the size and customer count of businesses into consideration in terms of penalties and the scope of protection of personal data, compliance is particularly important for enterprise-scale organizations. You do not necessarily have to have an active business presence in a country or region; simply storing data on or moving it through servers there may subject you to their data protection rules.
China’s new rules for facial recognition technology require companies to protect personal information, and to demonstrate a "specific purpose" and "sufficient necessity" when collecting biometric data of this nature.
Since the GDPR went into effect in 2018, Meta has done nearly everything possible to claim legitimate interest to avoid user consent for collecting personal information for targeted ads. The company appears to have finally reached the end of its rope in this area, though a recently announced changeover to a consent basis.
Under the new terms of the California Privacy Rights Act (CPRA), the California Privacy Protection Agency (CPPA) will be examining a broad range of data collected by car manufacturers, including what the vehicle cameras capture and what is passing through their apps.
India has now been seeking to establish a single national-level personal data protection bill for about six years. The newest development in this saga is the Digital Personal Data Protection Bill, the first attempt introduced to Parliament since the previous effort was withdrawn in 2022.
The laws and regulations of the future will increasingly be read, analyzed and implemented by AI or by lawyers augmented with AI, and also by technology and business people, especially for SMEs who cannot afford lawyers.
Texas is the tenth state to enact comprehensive data privacy protections for its residents. The Texas Data Privacy and Security Act will take effect July 1, 2024, giving Texas businesses a year to prepare for compliance with the new law.
Meta is facing a total of $20 million in fines in Australia due to misleading consumers about personal data usage. Facebook Israel and VPN service Onavo Protect promised to keep user data private and safe, but were sharing collected personal information with Meta for use in its targeted advertising systems.
The lone strong biometric privacy law in the United States has struck again, this time taking $68.5 million from Instagram in a settlement for a class action first filed nearly three years ago.
As businesses grapple with the GDPR fines and repercussions of non-compliance, it is crucial to identify and avoid the three common mistakes that have landed countless organizations in hot water.










