Large retail companies in Taiwan would be required to draft personal information protection plans within the next six months and obtain customers’ consent before using that data for marketing purposes, according to regulations announced by the Ministry of Economic Affairs yesterday
The new rules, implemented under the Personal Data Protection Act (個人資料保護法), would require retailers that collect customers’ data through membership programs or other means and which have a paid-in capital of at least NT$10 million (US$317,279) to formulate the plans by Feb. 1 next year, the Department of Commerce said in a news release.
The plans would have to include detailed information on how customers’ personal information is collected, stored and used, and the security measures that are in place to protect it, the ministry said.
Photo: Taipei Times
Retailers would also have to detail how their employees are trained in personal data protection and prepare emergency response procedures to be followed in the event of a breach, it said.
If a data leak occurs, companies would be required to inform the government within 72 hours and send notifications to all customers whose personal information was compromised, the ministry said.
The new regulations would require retailers to obtain customers’ consent before using their personal data for marketing purposes, and to immediately stop using the data if a customer asks them to, it said.
Companies that contravene the new rules would face a fine of NT$200,000 to NT$2 million, or NT$150,000 to NT$15 million in cases where an extreme breach has occurred or a company has failed to take corrective measures for a past infringement, the ministry said.
The new regulations come in the wake of a series of customer data-related lapses involving high-profile retailers in Taiwan.
For example, e-commerce platform Shopee and local bookstore Eslite were in May fined NT$200,000 and NT$100,000 respectively for inadequately protecting their customers from phishing scams.
Vehicle rental service iRent was in February fined NT$200,000 for improperly storing the personal data of more than 400,000 customers in an unprotected online database.
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