New China law tightens control over companies' data on users

China is tightening control over data gathered by companies about the public under a law approved by its ceremonial legislature

BEIJING -- China is tightening control over data gathered by companies about the public under a law approved Friday by its ceremonial legislature, expanding the ruling Communist Party’s crackdown on internet industries. The data protection law follows anti-monopoly and other enforcement actions against companies including e-commerce giant Alibaba and games and social media operator Tencent that caused their share prices to plunge. The law, which takes effect Nov. 1, follows complaints companies misused or sold customer data without their knowledge or permission, allowing it to be used for fraud or unfair practices such as charging higher prices to some users. The law curbs what information companies can gather and sets standards for how it must be stored. The full text of the law wasn't immediately released, but earlier versions also would require customer permission before data can be sold to another company.