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October edition

China Data Law | Starbucks x Rednote | To Be Hero X

October edition

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China Macro: Economy, Government, Society

Overview of any government movements affecting end consumers and brands.

OPINION: Luxury Brands Under Scrutiny Signal Overlooked China Data Law Risks

Recent investigations in China into multiple luxury brands, including Dior, Gucci, and Louis Vuitton, concerning consumer data leaks, underscore significant and often overlooked risks associated with China's data laws.

These investigations stem from a global data breach that compromised millions of customer records, including names, email addresses, physical addresses and spending habits.

Dior's Chinese entity, following a four-month investigation, was fined for several violations:

  1. Illegally transferred user personal information to its French headquarters without a data export security assessment or a data export contract.
  2. Failing to fully inform users and obtain their consent regarding how overseas recipients would process their personal information.
  3. Neglecting to implement essential security measures like encryption and de-identification for collected personal information.

Similarly, Hong Kong's Privacy Commissioner for Personal Data initiated an investigation into Louis Vuitton in July, following allegations that personal information belonging to approximately 419,000 Hong Kong customers had been compromised.

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