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

On 14 August 2020, the public consultation on the Draft on Data Regulations of the Shenzhen Special Economic Zone closed. 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. In addition, the service providers cannot refuse services or core functions to users if they don’t accept the agreements on personal data usage. Furthermore, the entities cannot use big data analysis to list different prices, a provision added to avoid discriminatory pricing on users. Finally, it introduces new restrictions on data collection and storage, service providers will be allowed to collect data only 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, companies will be sanctioned with a fine amounting to no more than 5% of turnover or 50 million yuan in case of non-compliance. The consultation on the Draft of Data Regulations opened on 15 July 2020.