Data Handling and Model Contractual Clauses

Data hk is an effective tool for businesses to analyse and make informed decisions about their operations and market trends. It can also help governments to formulate policy and support business development. Data collection can be done by collecting primary or secondary data from various sources such as field observations, published reports, surveys and statistics. Data hk can then be used to create line graphs, cross sectional plots and maps that will allow users to see the trends in the data. The data can then be filtered by specific criteria such as time, location, category and more.

The Hong Kong Privacy Commissioner for Personal Data (“PCPD”) has recently released a set of recommended model contractual clauses to address two scenarios: (1) the transfer of personal data from one entity in Hong Kong to another entity outside Hong Kong; and (2) the transfer of personal data between entities both of which are controlled by a single entity in Hong Kong. The model clauses require that the data exporter undertake a transfer impact assessment and, if necessary, adopt adequate supplementary measures to bring the level of protection in the jurisdiction where the personal data is transferred up to that of Hong Kong.

In relation to the former scenario, the PCPD notes that there are already a number of safeguards in place such as the requirement for the data user to expressly inform the data subject on or before the original collection of his personal data of the classes of persons to whom the personal data may be transferred (DPP 1(3)); and the requirement to obtain the prescribed consent of the data subject in respect of any change of purpose for which the personal data collected was originally obtained (DPP 4(1)).

As to the latter scenario, the PCPD states that it is generally expected that the data importer will be able to satisfy its obligations in respect of compliance with the six core data protection principles (“DPPs”) of the PDPO by way of existing laws and regulations in the data importer jurisdiction. Nevertheless, the model clauses provide that the data exporter should identify and adopt additional contractual provisions to ensure that if those domestic laws and regulations do not meet the requirements of the DPPs, then the transfer will not be lawful.

Regardless of the scenario, the model clauses set out significant and onerous obligations on data users in relation to personal data transfers. Those obligations can be included as separate agreements, schedules to the main commercial arrangements or as contractual provisions within the overall commercial agreement.

It is perhaps surprising that the current position of Hong Kong with regard to section 33 of the PDPO appears out of step with international trends, particularly as increasing cross-border data flow is seen as an irreplaceable attribute of Hong Kong’s economy and is a key driving force behind the need for efficient, reliable and trustworthy means of transferring personal data. The future, however, may see a different position emerge as the rapid transformation of data privacy laws in mainland China and internationally continue to drive the need for more robust mechanisms for data transfers.