【Latest Highlights】

Publication of the Security Assessment Measures for Outbound Data Transfers

On 7 July 2022, the State Internet Information Office published the Security Assessment Measures for Outbound Data Transfers (hereinafter referred to as 'the Measures'), which came into effect on 1 September 2022.

The introduction of the Measures aims to implement the provisions of the Cybersecurity Law, the Data Security Law,  and the Personal Information Protection Law of the People's Republic of China, which regulate outbound data activities, protect the rights and interests of personal information, safeguard national security and social public interests, promote the safe and free flow of data across borders, and effectively ensure safe development so as to promote security with development.

The Measures clarify that the security assessment of data processors providing important data and personal information collected and generated in the course of their operations in the People's Republic of China to foreign countries shall be governed by the Measures. The Measures set out requirements for outbound data security assessments, stipulating that data processors should conduct an outbound data risk self-assessment specifying the key assessment items prior to submitting their outbound data security assessment. The Measures adamantly advocate that outbound data security assessment should abide by the principles of combining prior assessment and continuous supervision, as well as combining risk self-assessment and security assessment.

The Measures stipulate the specific circumstances under which outbound data security assessment should be declared, including the provision of important data by data processors to foreign countries, the provision of personal information to foreign countries by operators of critical information infrastructures and data processors handling personal information of more than one million persons, the provision of personal information to foreign countries by data processors that have provided personal information of 100,000 persons or sensitive personal information of 10,000 persons in aggregate since January 1 of the previous year and other cases that require declaration of data exit security assessment as stipulated by the State Internet Information Technology Department.

The Measures also stipulate that data processors should spell out in certain terms the responsibility and obligation of data security protection in the legal documents concluded with the overseas recipient, and that any situation affecting outbound data security should be re-declared during the validity period of the outbound data security assessment. In addition, the Measures further clarifies matters such as outbound data security assessment procedures, supervision and management system, legal responsibilities and requirements for compliance and rectification.

【New Law Update】

Provisions on Clearly Marking Prices and Prohibition on Fraudulent Pricing

Provisions on Clearly Marking Prices and Prohibition on Fraudulent Pricing (hereinafter referred to as 'the Provisions') were Promulgated under Decree No.56 of the State Administration for Market Regulation on April 14, 2022, and become effective on July 1, 2022.

The Provisions were enacted in accordance with the Pricing Law of the People's Republic of China, the Provisions on Administrative Penalties for Price-related Illegalities and other laws and administrative regulations for the purposes of regulating the clear marking of prices by business operators, preventing and deterring fraudulent pricing, maintaining the market price order, and protecting the legitimate rights and interests of consumers and business operators as well as public interests.

The Provisions apply to the supervision, administration, investigation and punishment by market regulatory authorities against business operators violating the provisions on clearly marking prices and fraudulent pricing. For the purpose of the Provisions, the term 'clearly marking prices' refers to such activities of business operators as publicly marking prices and other information in accordance with the law in the process of selling or purchasing goods or providing services. For the purpose of the Provisions, the term 'fraudulent pricing' refers to such activities of business operators as luring consumers or other business operators into trading with them by false or misleading pricing means.

The Provisions mainly stipulate clearly marking prices and special circumstances such as additional sales of goods, network sales and price reductions. Operators shall mark their prices in accordance with the characteristics of goods and services, industries and regions, so as to be truthful and accurate, with goods and labels in the right place and clearly marked, but market supervision and management departments at or above the municipal level may, in accordance with specific circumstances, specify the goods and trading places where price marking is not to be implemented. When selling goods or providing services, the operator shall not sell goods or provide services at a price in addition to the marked price, and shall not charge any unmarked fees. Where an operator sells goods or provides services by means of the internet, etc., the price shall be clearly marked by means of text, images, etc., through an internet page. An operator shall not, without reasonable justification, temporarily and significantly increase the marked price and use it as a basis for calculating the discount or price reduction prior to the discount or price reduction.

In addition, the Provisions also clearly set out fraudulent pricing conducts in which  operator and the network trading operator are prohibited from practising, as well as exemptions on conducts that are not fraudulent pricing.

In the event of a breach of the Provisions, the operator shall be liable in accordance with the Price Law of the People's Republic of China, the Provisions on Administrative Penalties for Price Violations, the Law of the People's Republic of China Against Unfair Competition and other laws as well as the corresponding provisions of the Provisions. The Provisions also clarify the mitigating and non-punishable circumstances of the operator.

【Our Firm’s Latest Activities】

Seminar on Rent Waiver and Lease Termination during the Epidemic

Shanghai Veritas Law Corporation, in association with SBA Stone Forest Corporate Advisory (Shanghai) Co., Ltd. and MAYCHAM CHINA Shanghai, held a seminar on 14 July 2022 at the Liyang Agency Office. The topic of the seminar was Rent Waiver and Lease Termination during the Epidemic, with our attorneys Madam He and Mr Sun acting as the speakers.

The main contents of the seminar were: on 29 May 2022, the Shanghai Municipal People's Government issued a circular entitled 'Shanghai Action Plan for Accelerating Economic Recovery and Revitalisation' (hereinafter referred to as '50 Articles'), which was formulated from a practical perspective to form 50 initiatives to assist enterprises to alleviate their difficulties and economic recovery and revitalisation. Small and micro enterprises and individual entrepreneurs who rent state-owned housing to engage in production and business activities will be exempted from submitting documents proving that they have been affected by the epidemic, and can be exempted from paying six months of housing rent in 2022. At the same time, the policy encourages owners or management entities of non-state housing such as commercial complexes, business buildings, professional markets, industrial parks and innovation bases to grant a six-month rent waiver to small and micro enterprises and individual entrepreneurs who eventually take up the lease to operate. This seminar revolved around the aforementioned policy. In the seminar, we listed 50 situations where this policy applies and 50 situations where it does not apply.