What is PIPL (Personal Information Protection Law - China)?
The PIPL is China's comprehensive personal information protection law that regulates the processing of personal information by organizations inside and outside China, with strict cross-border data transfer requirements.
The Personal Information Protection Law (PIPL) of the People's Republic of China, effective November 1, 2021, is China's first comprehensive data protection law. Together with the Cybersecurity Law and the Data Security Law, it forms the foundation of China's data governance framework. The PIPL applies to the processing of personal information of natural persons within China, including processing activities carried out by organizations outside China that provide products or services to, or analyze the behavior of, individuals in China.
The PIPL establishes a consent-based framework with additional lawful bases including contractual necessity, legal obligations, public health emergencies, public interest, and other circumstances provided by law. It provides individuals with rights to know, decide, restrict, refuse, access, copy, correct, delete, and request explanation of automated decision-making. The law imposes strict requirements on cross-border data transfers, requiring organizations to meet one of several conditions: passing a security assessment organized by the Cyberspace Administration of China (CAC), obtaining certification from a recognized body, entering into standard contracts, or meeting other conditions specified by the CAC.
Penalties for serious violations can reach up to 50 million RMB or 5% of the prior year's annual turnover, along with potential business suspension and personal liability for responsible individuals. Organizations processing data of Chinese individuals can leverage ComplyIQ for PIPL compliance management and DiscoverIQ to identify personal information subject to the law's requirements.
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Related Terms
GDPR (General Data Protection Regulation)
The General Data Protection Regulation is the European Union's comprehensive data protection law that sets strict rules for how organizations collect, store, and process personal data of EU residents, with fines up to 4% of annual global turnover.
Cross-Border Data Transfer
Cross-border data transfer refers to the movement of personal data from one country or jurisdiction to another, which is regulated by data protection laws that impose specific requirements to ensure adequate protection.
Consent Management
Consent management is the systematic process of obtaining, recording, tracking, and managing individuals' consent for the collection and processing of their personal data in compliance with privacy regulations.
Sensitive Personal Data
Sensitive personal data includes special categories such as health information, biometric data, racial or ethnic origin, religious beliefs, and sexual orientation that require enhanced protection.
Data Protection Impact Assessment (DPIA)
A Data Protection Impact Assessment is a systematic process for evaluating the potential impact of a data processing activity on individuals' privacy, required under the GDPR for processing likely to result in high risk to data subjects.