The Personal Information Protection Law (PIPL) is China’s comprehensive data privacy regulation, designed to safeguard personal data and regulate how businesses collect, store, and process user information. Enacted in November 2021, PIPL is often compared to the EU’s General Data Protection Regulation (GDPR) but has unique provisions tailored to China’s digital landscape. It establishes strict guidelines on data transfers, user consent, and corporate accountability, significantly impacting global brands operating in China.
Why is PIPL important?
Data privacy is a significant concern with China’s vast digital economy and millions of daily online interactions. PIPL ensures that domestic and international companies uphold strict privacy standards when handling Chinese users’ data. Non-compliance can lead to hefty fines, operational restrictions, or even blacklisting from the Chinese market. The law emphasizes informed consent, requiring businesses to disclose how and why they collect personal data. It also enforces data localization, meaning that certain types of personal data must be stored within China unless companies meet specific conditions for cross-border transfers.
Key provisions of PIPL
- User consent & transparency – Companies must obtain clear, informed consent before collecting personal data and provide users with easy opt-out options.
- Cross-border data transfers – Businesses transferring Chinese user data outside the country must undergo security assessments or meet specific legal requirements.
- Data minimization & storage – Organizations should only collect necessary data and must delete it when the intended purpose is fulfilled.
- Strict penalties – Violations can result in fines of up to 5% of a company’s annual revenue, alongside potential operational bans.
Impact on mobile marketers
For mobile marketers, PIPL requires a privacy-first approach when targeting Chinese consumers. App developers, ad networks, and brands must ensure that data tracking, personalized ads, and customer interactions comply with PIPL’s consent guidelines. Marketers relying on cross-border analytics or international advertising platforms should also reassess their data transfer processes to avoid legal risks.
As privacy regulations evolve globally, adapting to PIPL ensures compliance and fosters trust and transparency with Chinese users, strengthening long-term engagement.