October 14, 2024

Data hk is a powerful business tool, enabling organisations to collect and analyse information from both internal and external sources. This information can be used for a wide range of purposes including measuring customer satisfaction, identifying market trends and improving efficiency. However, despite the benefits of data hk, companies must ensure that they follow appropriate privacy regulation to minimise the risk of data breaches and to protect data transfers between businesses. Padraig Walsh, from the Data Privacy practice group at Tanner De Witt, explains what businesses need to know about cross-border data transfers under Hong Kong privacy law.

When it comes to cross-border data transfers, it is important for businesses to understand the scope of their obligations under the Hong Kong Personal Data Protection Ordinance (PDPO) and the six data protection principles that underpin its core data privacy obligations. This will help to reduce compliance risks and promote efficient data transfer arrangements between businesses.

A key point to remember is that the PDPO applies to “data users”. A data user is defined as a person who controls the collection, holding, processing or use of personal data. This definition excludes people who control data only on behalf of others or who are jointly or in common with them, as well as entities that do not use personal data at all.

Once a person is deemed to be a data user, it triggers a series of statutory obligations under the PDPO. These include complying with the six DPPs and, where appropriate, obtaining consent from data subjects for the purposes for which the personal data will be collected. This also includes, in some circumstances, obtaining the consent of data subjects for the transfer of personal data to a third party outside Hong Kong.

To this end, the PCPD has issued two sets of recommended model contractual clauses to aid data users in complying with their PDPO obligations when transferring personal data abroad. The first set of model clauses addresses transfers between data users operating in Hong Kong. The second set addresses transfers between a data user and entities both located in Hong Kong and those operating abroad, where the transfer is controlled by a data user in Hong Kong.

In addition to the model clauses, the PCPD has published a comprehensive guide on how to implement them in contractual arrangements. These can take the form of separate agreements, schedules to existing commercial agreements or as contractual provisions within the main commercial arrangement. The form of the agreement ultimately does not matter, but what matters is that the PDPO requirements are met.

Once the data exporter has identified that the PDPO requirements will be met in respect of the proposed transfer, it should then consider whether it would be appropriate to adopt supplementary measures to bring the level of protection afforded to the personal data in the foreign jurisdiction up to Hong Kong standards. This could be done by introducing technical measures, such as encryption or anonymisation, or by imposing additional contractual provisions in relation to audit, inspection and reporting, beach notification, compliance support and co-operation.