Legislation

Shanghai Government Releases the Implementation Plan for the Standardization of Digital Transformation of Shanghai

On April 20, 2022, the Implementation Plan for the Standardization of Digital Transformation of Shanghai was released. In order to thoroughly implement the National Standardization Development Outline issued by the Central Committee of the Communist Party of China and the State Council, and to implement the strategic deployment of accelerating digital development and building a digital China, on March 18, Shanghai Government formulated this implementation plan in accordance with the Opinions on Comprehensively Promoting the Digital Transformation of Shanghai and the 14th Five-Year Plan for Comprehensively Promoting the Digital Transformation of Shanghai, with the purpose of promoting the standardization of the digital transformation of Shanghai. 1

MIIT to Speed up the Introduction of the Regulations on the Protection of Personal Information of Mobile Applications

On April 14, Sui Jing, director of the Cybersecurity Administration Bureau of the Ministry of Industry and Information Technology ("MIIT") said at a conference that it would speed up the introduction of the Data Security Management Measures in the Field of Industry and Information Technology and the Regulations on the Protection of Personal Information of Mobile Applications, study and develop data security standards in important areas such as the collection and use of personal information by APPs, Internet of vehicles and artificial intelligence, and strengthen personal information protection and data security supervision. 2

Chongqing Data Regulations Adopted: Illegal Use of Public Data Fined up to 100,000 RMB, Regional Synergy Development under Renewed Focus

On April 6, it was reported that recently the Standing Committee of the Fifth Chongqing People's Congress adopted the Chongqing Data Regulations at its 33rd meeting and the Regulations will come into effect in July this year. The Regulations include data processing and security, data resources, data elements market, development and application, regional synergy and legal liability. The Regulations stipulate that if the agreement of use with the municipal data authority is violated, the use of data is not reported to the municipal data authority, or the public data is used beyond the agreed scope of use, the authority shall order to make corrections within a time limit. Those who fail to make corrections or cause serious consequences shall be fined not less than 10,000 RMB but not more than 100,000 RMB. Besides, the chapter of "Regional Synergy" echoes the recently released Regulations on the Development of Big Data in Sichuan Province (Draft for Public Comments). 3

China (Beijing) Pilot Free Trade Zone Regulations to Come into Force on May 1, Promoting the Establishment of Data Trading Standards

On March 31, China (Beijing) Pilot Free Trade Zone Regulations were passed on the 38th meeting of the Standing Committee of the 15th Beijing People's Congress and will come into effect on May 1 this year. On November 24, 2021, the Standing Committee of Beijing People's Congress conducted the first review of the draft Regulations, which were deliberated for the second time and passed by vote at this meeting. The Regulations consist of eleven chapters and sixty-eight articles, mainly providing for ten aspects. One aspect is to promote the development of digital economy, including exploring and formulating information technology security, data privacy protection, and cross-border data flow management rules, and promoting the establishment of relevant data trading standards and circulation service systems. 4

CNIPA: China to Recognize Reasonable Gains for Data Handlers in the Field of Data Property Protection

On April 24, 2022, Shen Changyu, director of China National Intellectual Property Administration ("CNIPA"), introduced at a press conference on China's intellectual property development status in 2021 held at the State Council Information Office that the CNIPA has set up a working team to develop guiding principles such as fully respecting the creative work and capital investment of data handlers and recognizing and protecting the reasonable gains of data handlers. 5

MOT: Strengthen the Management of Information Security of Road Passenger E-tickets and Prevent Leakage of Passengers' Personal Information

On April 11, the Ministry of Transport ("MOT") issued the Notice on the Popularization of Road Passenger Transport Electronic Ticket Related Work, requiring to strengthen the network security, data security and personal information protection of road passenger e-ticket service, ensure the safe and smooth operation of the system, and strictly prevent the leakage of important data such as passengers' personal information. 6

Five Departments Jointly Issue a Document Requiring the Strengthening of the Security System of New Energy Vehicle Enterprises and the Strengthening of Data Security Protection

On March 29, to implement the New Energy Vehicle Industry Development Plan (2021-2035), the MIIT, the Ministry of Public Security ("MPS"), the MOT, the Ministry of Emergency Management and the SAMR joint issue the Guiding Opinions on Further Strengthening the Construction of New Energy Vehicle Enterprises' Security System, requiring a sound cybersecurity guarantee system, including strengthening cybersecurity protection, strengthening data security protection, and implementing personal information security protection. 7

On April 24, 2022, the National Computer Virus Emergency Response Center ("CVERC") recently found through Internet monitoring that 17 mobile APPs had privacy non-compliance issues, violating the Cybersecurity Law, the Personal Information Protection Law ("PIPL") and other relevant provisions, and allegedly collecting personal privacy information beyond the scope. 8CVERC Identifies Seventeen APPs with Privacy Non-compliance Issues

State Post Bureau, MPS and CAC Jointly Hold Specialized Action for the Governance of Personal Information Security in the Postal and Express Delivery Sector

On April 21, the State Post Bureau, the MPS and the Cyberspace Administration of China ("CAC") jointly held a teleconference to deploy a six-month special action for the governance of personal information security in the postal and express delivery sector. 9

SPP Releases 10 Typical Cases of Telecom Network Fraud

On April 21, the Supreme People's Procuratorate ("SPP") released 10 typical cases of cracking down on telecommunication network fraud and related crimes. As to the type of the cases, five of them are telecommunication and network fraud crimes, and the other five are related to crimes of online black markets. 10

MIIT Reports 37 APPs of Illegal Collection of Personal Information and Infringement of Users' Rights

On April 21, the MIIT released the Notice on the APPs of Infringing User Rights and Interests, the third batch in 2022. According to relevant laws and regulations, the MIIT had organized third-party testing agencies to inspect mobile Internet applications (APPs). As of the notice, there were still 37 APPs that have not completed the rectification. The relevant situation was notified and they were ordered to correct before April 26. 11

MIIT Tests a Total of 610,000 APPs and Reports 134 Illegal APPs in the First Quarter

On April 19, the State Council Information Office's press conference pointed out that, in the first quarter of 2022, the MIIT had effectively rectified issues such as compulsory APP downloading, pushed major Internet enterprises to basically solve the relevant problems that existed, and carried out 2 batches of technical sampling, testing 610,000 APPs and reporting 134 illegal APPs. In response to the problems related to enticing downloads of malicious APPs and harassing phone calls exposed by the 315 Gala this year, it took powerful measures timely such as taking down the problematic APPs and shutting down the dedicated voice lines, and investigating and punishing the enterprises involved in accordance with the law. 12

CVERC Reports 16 APPs Suspected of Collecting Personal Privacy Information beyond the Scope

On April 15, it was reported that the CVERC had recently discovered through Internet monitoring that 16 mobile apps have privacy non-compliance issues and allegedly collect personal privacy information beyond the scope. 13

CAC to Carry out Specialized Action of "Qinglang - 2022 Comprehensive Governance of Algorithm", Focusing on Checking Large Websites and Platforms

On April 8, in order to effectively promote the implementation of the Regulations on the Administration of Algorithm Recommendations for Internet Information Services, the CAC announced to take the lead in carrying out the special action of "Qinglang - 2022 Comprehensive Governance of Algorithm". It will investigate and rectify Internet platforms' algorithm security issues, evaluate algorithm security capabilities, and focus on the inspections of large websites, platforms and products that are capable of facilitating public opinions or social mobilization. The action will be taken from now until early December 2022. 14

Leakage of Personal Information of Sub-close Contacts for Covid-19 Results in Administrative Detention for 5 days

On April 7, a list of sub-close contacts for Covid-19 in Hailin City of Heilongjiang Province was released in a WeChat group, containing the names, ID numbers, telephone numbers, home addresses and other personal information of nine sub-close contacts. The public security authorities verified that the list was forwarded to a non-working WeChat group named "XX Family" by Dong, a staff member at a prevention and control isolation site in Hailin City, leading to the spread. According to the PIPL, the Law on Penalties for Administration of Public Security, the Public Security Bureau of Hailin City imposed a penalty of administrative detention on Dong for 5 days. 15

Cyberspace Administration of Hainan Province Reports the Illegal Collection and Use of Personal Information by 16 APPs

On March 29, Cyberspace Administration of Hainan Province, in accordance with relevant laws and regulations, organized technical testing on the collection and use of personal information by a number of APPs that have large number of users in the province or are closely related to people's lives. The test results show that 16 APPs have different degrees of violations in the collection and use of personal information and were thus announced publicly. 16

Courts Litigation

Two Airline Customer Service Agents Jailed for Selling Personal Information of Celebrities to Fans

On April 22, 2022, Beijing Chaoyang District People's Court handed down a first instance verdict in a case against four people accused of violating citizens' personal information for buying and selling celebrities' flight itineraries. The four defendants were held criminally responsible for infringing on citizens' personal information. Two of them were sentenced to three years in prison and fined 40,000 RMB respectively, and were disqualified from being aviation customer service agents for three years. The other two received suspended sentences. The prosecutors also filed an incidental civil public interest lawsuit. Two of the defendants were ordered to jointly pay more than 40,000 RMB as public interest damages, and respectively pay more than 6,200 RMB and 18,000 RMB in addition. 17

Court Orders a Hot Pot Restaurant to Stop Infringement by Collecting Personal Information Through QR Code Ordering

On April 21, it was reported that recently the Jingyang District Court in Deyang City, Sichuan Province, heard a case in which a consumer was asked to scan a QR code when dining at a hot pot restaurant. The consumer argued that the restaurant had obtained information such as mobile phone number, birthday, name, address book and other information unrelated to the dining, and that the restaurant had infringed his personal information. The court heard the case and ruled that the hot pot restaurant stop infringing.18

Beijing Haidian Court Issues Typical Cases of New Types of Online Unfair Competition Disputes, Three Involving Data Crawling

On April 19, Haidian District Court held a press conference to release the White Paper on Intellectual Property Rights Cases of Beijing Haidian District People's Court (2022), which reported its situation of the intellectual property rights cases in 2021 and of new types of online unfair competition cases in the past three years. It also released typical cases of new types of online unfair competition cases, including a total of three cases involving data crawling. 19

First Cross-border Data Trading Case in which Data Involved Identified as Intelligence, Involving Illegal Provision of High-speed Rail Data Abroad

April 15 is National Security Education Day for China. It was reported on that day that the national security authorities had uncovered an important case of spying and illegally providing data on high-speed railways for foreign entities. This case is the first in which the data involved was identified as intelligence since the implementation of the Data Security Law, and the first case in China involving the security of high-speed rail operations that endangered national security. 20

SPC Issues Typical Civil Cases on Judicial Protection of Personality Rights after the Promulgation of the Civil Code

On April 11, the Supreme People's Court ("SPC") has selected nine typical civil cases on the judicial protection of personality rights. These nine cases are all cases with significant social impact and typical exemplary significance that have been decided by people's courts at all levels nationwide since the promulgation of the Civil Code, including a case on video doorbells infringing on the privacy of neighbors, and a civil public interest litigation case of illegally buying and selling personal information. 21

Beijing's First Criminal Incidental Civil Public Interest Litigation of Infringing Citizens' Personal Information Concluded, Trading Over 9 Million Pieces of Personal Information

On April 2, Shunyi District Court concluded the first civil public interest litigation incidental to criminal proceeding for the infringement of citizens' personal information in Beijing. The defendant, Li, was sentenced to three years' imprisonment and ordered to pay damages of 106,859.84 RMB, to delete the stored information, and to make public apologies on a national news media for trading more than 9 million pieces of personal information. 22

Douban Sues Weibo for Unfair Competition by Allowing Users to Migrate Contents, Weibo Alleging Normal Business Operation

On March 30, Beijing Douwang Technology Co., Ltd. ("Douban") sued Beijing Weimeng Chuangke Network Co., Ltd. ("Weibo") for unfair competition. Douban claimed that Weibo had copied the names of several Douban groups without authorization during the recruitment for administrators of the "Super Hashtag New Star Project", and demanded that Weibo immediately stop the infringement, make public apologies and compensate Douban with 1 RMB. Weibo replied that the project was not targeted at a particular platform, but part of its normal business operations, and that there was no unfair competition or plagiarism at all. 23

Footnotes

1 https://www.shanghai.gov.cn/nw12344/20220420/ff051a984ba34d74abf95dacdd2031b0.html

2 https://finance.sina.com.cn/tech/2022-04-14/doc-imcwipii4223289.shtml?finpagefr=p_114

3 https://m.21jingji.com/article/20220406/herald/74289dd554f60e0c3caab62aabb61436.html

4 http://www.legaldaily.com.cn/index/content/2022-03/31/content_8697279.htm

5 http://www.bj.xinhuanet.com/2022-04/25/c_1128592935.htm

6 http://www.chinarta.com/html/2022-4/202241194744.htm

7 http://www.gov.cn/zhengce/zhengceku/2022-04/09/content_5684250.htm

8 http://tj.news.cn/jz/2022-04/25/c_1128593169.htm

9 http://www.spb.gov.cn/gjyzj/c100015/c100016/202204/b0969cffe9914195be09eb58d34328b6.shtml

10 https://mp.weixin.qq.com/s/3O4PGcyqz-GU78ayuOw1_w?scene=25#wechat_redirect

11 http://www.workercn.cn/34070/202204/21/220421083151694.shtml

12 http://www.scio.gov.cn/xwfbh/xwbfbh/wqfbh/47673/48137/wz48139/Document/1723147/1723147.htm

13 https://view.inews.qq.com/a/20220415A04DFY00

14 http://www.cac.gov.cn/2022-04/08/c_1651028524542025.htm

15 https://mp.weixin.qq.com/s/Nqc9DZ0_2S0qeZFclr7pEg?scene=25#wechat_redirect

16 https://mp.weixin.qq.com/s/gbJB2V_sHBP6P0dG8nUExg?scene=25#wechat_redirect

17 https://mp.weixin.qq.com/s/QBv95JLNesnn2OwqSuL3ow?scene=25#wechat_redirect

18 http://www.news.cn/2022-04/21/c_1128579599.htm

19 https://bjhdfy.chinacourt.gov.cn/article/detail/2022/04/id/6642912.shtml

20 https://tv.cctv.com/2022/04/13/VIDE0FR1IT8DudSltL6poIRg220413.shtml?spm=C45404.PhRThW8bw020.EToagw7mjlwm.6

21 https://mp.weixin.qq.com/s/5WYcCEsCGYagU0F19TtHXw?scene=25#wechat_redirect

22 https://new.qq.com/omn/20220402/20220402A0BQ0L00.html

23 https://www.infzm.com/wap/#/content/225940

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