China passes law to restrict companies’ use of consumer data

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Aug. 20 (UPI) — Chinese lawmakers on Friday approved a law that imposes major restrictions on how private companies can compile and manage customers’ private data.

The new law, which will take legal force in November, will make it more difficult and expensive for tech firms in China to access and use consumer information.

Beijing’s Personal Information Protection Law is the first comprehensive set of rules around data collection to be passed in China, and follows complaints from Chinese consumers about how companies have used and sold their personal data.

A draft of the law outlines rules that require consumer consent and punishments for companies that don’t comply.

One provision of the law says consumers can withdraw consent at any time and say no to excessive data collection by businesses and some government agencies.

The law was passed on the final day of a session of the Standing Committee of the National People’s Congress. Lawmakers approved three other laws during the session, including a revised military service law.

Chinese President Xi Jinping signed orders to enact the laws and amendments on Friday.

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