China: Consultation opens on the Draft Data Regulations of the Shenzhen Special Economic Zone

On 15 July 2020, the Shenzhen Municipal Bureau of Justice published the Draft on Data Regulations of the Shenzhen Special Economic Zone for public consultation. The proposal covers data processing, data sharing and introduces requirements for data management and security. More specifically, the users will have to be informed and provide their consent for personal data processing. It introduces the right of consent withdrawal and gives users the option to refuse customized recommendations based on their profile analysis. Furthermore, entities cannot use big data analysis to list different prices, a provision added to avoid discriminatory pricing on users. Finally, the regulation introduces new restrictions on data collection and storage, as service providers will only be allowed to collect data if they have a reasonable and clear objective. Service providers will be required to delete or anonymize the data if that objective was fulfilled. In general, non-compliance can be sanctioned with a fine of up to 5% of turnover and no more than 50 million yuan. The public is invited to submit their opinions until 14 August 2020.