China Personal Information Protection Compliance Audit Management Measures
On 12 February 2025, the Cyberspace Administration of China (CAC) released the final version of the Personal Information Protection Compliance Audit Management Measures (hereinafter referred to as the “Measures“), outlining requirements for companies to undergo a compliance audit on personal information protection, which will come into effect on 1 May 2025.
The Measures are formulated in accordance with the Personal Information Protection Law of the People’s Republic of China (PIPL), the Network Data Security Management Regulations, and other laws and administrative regulations.
These measures are a significant step forward in strengthening China’s regulatory framework for personal information protection. This article aims to provide a comprehensive overview of the Measures, focusing on what a personal information protection compliance audit (hereinafter referred to as the “Audit”) is, the purpose of these Measures, how to conduct such an audit, who needs to perform it, and other key provisions that require attention.
What is a Personal Information Protection Compliance Audit
A personal information protection compliance audit is a systematic evaluation process designed to assess whether an organization’s handling of personal information complies with relevant laws, regulations, and standards.
The audit typically involves reviewing data collection, storage, processing, and sharing practices to ensure they meet legal requirements and protect individuals’ privacy rights. The Measures provide a standardized framework for conducting these audits, ensuring industry consistency and accountability.
Who Needs to Conduct Such an Audit
The Measures specify that the following entities are required to conduct the audits:
- Critical Information Infrastructure Operators (CIIOs)[1]
- Large-Scale Data Processors[2]
- Public Institutions[3]
- Other Designated Entities[4]
Purpose of the Measures
The primary purpose of the Measures is to enhance the protection of personal information by establishing a robust compliance audit mechanism. With the rapid digitalization of society, the risks associated with data breaches and misuse have increased significantly. The Measures aim at:
- Strengthen Accountability: by requiring regular audits, organizations are held accountable for their data handling practices.
- Prevent Data Misuse: aim to minimize the risks of personal information being illegally collected, used, or shared.
- Promote Transparency: audits help organizations identify gaps in their compliance and take corrective actions, fostering trust among consumers and stakeholders.
- Align with Global Standards: align China’s personal information protection framework with international best practices, such as the GDPR in the European Union. Our previous post on the Key Similarities and Differences between the GDPR and PIPL is available on our website.
Key Provisions of the Measures
Audit Frequency
The Measures mandate that audits be conducted at least once a year, with more frequent audits required for high-risk organizations.
Third-Party Audits
Organizations may engage qualified third-party auditors to conduct the audit, ensuring objectivity and expertise.
Record-Keeping
Audit reports and related documentation must be retained for at least three years and made available for regulatory inspection.
Penalties for Non-Compliance
Failure to comply with the Measures may result in fines, reputational damage, and other legal consequences.
Employee Training
Organizations are required to provide regular training to employees on personal information protection and compliance requirements.
Conclusion
Such measures represent a significant advancement in China’s efforts to safeguard personal information in the digital age. As the implementation date of 1 May 2025 approaches, involved companies should prioritize understanding and adhering to these requirements to avoid penalties and build trust with their stakeholders.
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[1] Organizations operating in sectors such as finance, energy, transportation, and telecommunications.
[2] Entities that process a significant volume of personal information, as defined by the Cyberspace Administration of China (CAC).
[3] Government agencies and public service providers that handle personal information.
[4] Organizations identified by regulatory authorities as requiring audits due to the sensitivity of the data they process.
