Private businesses could be fined up to NT$10 million (US$327,912) for failing to take proper action to safeguard personal data security, the Executive Yuan said yesterday.
The amendment to the Personal Data Protection Act (個人資料保護法), which was approved at the weekly Cabinet meeting yesterday morning, was proposed after personal data breaches were reported at China Airlines, Breeze Center, and vehicle-sharing service operator iRent.
“Currently, private businesses must first be asked to address the data breaches and would only be fined if the breaches persist. The amendment would authorize the government to impose fines directly and raise the penalty up to NT$10 million,” said Yang Shu-ling (楊淑玲), director of the Department of Regulatory Reform at the National Development Council.
Photo: CNA
The amendment stipulates that private organizations or businesses would be fined NT$20,000 to NT$2 million if their negligence leads to data breaches and would be ordered to address the breaches within a designated period.
Those that fail to address data security issues by the deadline may be penalized consecutively, with the fine increasing to NT$100,000 to NT$10 million per data breach.
However, the starting fine for a major data breach would be NT$100,000 to NT$10 million, the amendment says.
Private businesses would be fined until the breaches are addressed, it says.
The amendment would also authorize the government to establish a personal data protection commission to enforce the Personal Data Protection Act.
“A preparatory office for the commission will first be established to stipulate temporary rules to help it handle cases of data breaches, as well as draft a personal data protection commission organic act,” NDC Deputy Minister Kao Shien-quey (高仙桂) said. “We hope the draft organic act would be deliberated during the first legislative session next year.”
The Cabinet also approved a proposed amendment to the Securities Investment Trust and Consulting Act (證券投資信託及顧問法) to deter investment scams on social media.
Many scammers post phishing ads on social media featuring Taiwanese celebrities to attract investors, Executive Yuan acting spokesman Lo Ping-cheng (羅秉成) told a news briefing after the Cabinet meeting.
“Although investment fraud cases were not the highest compared with other types of fraud, financial losses from investment fraud from last year to February [this year] topped NT$3.84 billion, accounting for half of total losses from fraud. As such, it is necessary to amend relevant regulations to deter it,” Lo said.
Financial Supervisory Commission Deputy Chairperson Hsiao Tsui-ling (蕭翠玲) said the amendment would require online advertisers or sponsors to disclose their real names and other information.
“Platform operators are obligated to review the advertisements in advance and must remove fraudulent ads after being notified. Platform operators and advertisers would be held jointly liable for financial losses reported by consumers if they fail to conduct due diligence ahead of time and fail to take down fraudulent ads after being notified,” she said.
However, platform operators might be exempt from joint liability if they did not intentionally show fraudulent ads on their platform, voluntarily removed the ads after being notified and did not make a profit from them, Hsiao said, adding that the commission would make a decision on a case-by-case basis.
Individuals or entities who are neither securities investment companies nor trust fund operators must not use such ads to mislead people that they are licensed to conduct investment activities, the amendment says.
“They are banned from falsely claiming endorsements by celebrities and organizations in their ads to attract investors,” it says. “The ads must not contain statements guaranteeing profits from the investment.”
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