International

On September 28, 2023, the Cyberspace Administration of China (“CAC”) issued draft Provisions on Standardizing and Promoting Cross-Border Data Flows (Draft for Comment) (规范和促进数据跨境流动规定（征求意见稿）) (draft “Provisions”) (Chinese version available here) for a public consultation, which will conclude on October 15, 2023. 

The draft Provisions propose significant changes to the existing cross-border data transfer regime established under China’s Personal Information Protection Law (“PIPL”).  Specifically, the draft Provisions provide certain exemptions to the requirement to adopt a transfer mechanism under Article 38 of the PIPL. In addition, the draft Provisions significantly lower the thresholds that trigger the obligation to undergo a government-administered security assessment or adopt Standard Contracts.  Moreover, in the event of a conflict between the draft Provisions and the PIPL’s implementing regulations (including the Measures on the Standard Contract for the Cross-Border Transfer of Personal Information and the Measures for Security Assessment of Cross-Border Data Transfer), the draft Provisions would prevail.Continue Reading China Proposes Significant Changes to Cross-Border Transfer Rules

As many readers will be aware, the EU’s new cybersecurity directive, NIS2, imposes security, incident notification, and governance obligations on entities in a range of critical sectors, including energy, transport, finance, health, and digital infrastructure (for an overview of NIS2, see our previous post here). One of the main reasons the Commission proposed these new rules was the inconsistent ways in which Member States had implemented requirements under the prior directive, NIS. To help improve harmonization further, the Commission has now issued two guidance documents to help assess when NIS2 or sector-specific requirements apply, and to ensure that registration requirements are consistent across the Union.
Continue Reading European Commission Publishes Guidance on NIS2: Interplay with Sector-Specific Laws

On 12 September 2023, the UK Information Commissioner, John Edwards, and the Chief Executive of the National Cyber Security Centre (“NCSC”), Lindy Cameron, signed a joint memorandum of understanding (“MoU”) detailing how the Information Commissioner’s Office (“ICO”) and NCSC will work together moving forward.

The MoU does not create legally binding obligations between the ICO and NCSC, but provides a strong signal of intent for areas of cooperation.  The statements about information sharing and engaging with NCSC leading to potentially reduced fines under the UK GDPR are likely to be of particular interest to commercial organizations.Continue Reading ICO Encourages Organizations To Cooperate with NCSC and Flags Potential Reduction in Fines

On 21 June 2023, at the close of a roundtable meeting of the G7 Data Protection and Privacy Authorities, regulators from the United States, France, Germany, Italy, United Kingdom, Canada and Japan published a joint “Statement on Generative AI” (“Statement”) (available here). In the Statement, regulators identify a range of data protection-related concerns they believe are raised by generative AI tools, including legal authority for processing personal information, and transparency, explainability, and security. The group of regulators also call on companies to “embed privacy in the design conception, operation, and management” of generative AI tools.

In advance of the G7 meeting, on 15 June 2023, the UK Information Commissioner’s Office (“ICO”) separately announced that it will be “checking” whether businesses have addressed privacy risks before deploying generative AI, and “taking action where there is risk of harm to people through poor use of their data”.Continue Reading UK and G7 Privacy Authorities Warn of Privacy Risks Raised by Generative AI

On 31 May 2023, at the close of the fourth meeting of the US-EU Trade & Tech Council (“TTC”), Margrethe Vestager – the European Union’s Executive Vice President, responsible for competition and digital strategy – announced that the EU and US are working together to develop a voluntary AI Code of Conduct in advance of formal regulation taking effect. The goal, according to Vestager, is to develop non-binding international standards on risk audits, transparency and other requirements for companies developing AI systems. The AI Code of Conduct, once finalized, would be put before G7 leaders as a joint transatlantic proposal, and companies would be encouraged to voluntarily sign up.Continue Reading EU and US Lawmakers Agree to Draft AI Code of Conduct

On May 30, 2023, one day before the Measures on the Standard Contract for the Cross-Border Transfer of Personal Information (“Measures”) were scheduled to take effect, the Cyberspace Administration of China (“CAC”) released a first edition of its guidance on how organizations should complete the filing procedure for Standard Contracts (“CAC Guidance”). (See our prior blog posts on the Standard Contract here.)Continue Reading China Releases Guidance on Filing Standard Contract for the Cross-Border Transfer of Personal Information

On April 17, 2023, the UK applied to join the Global Cross-Border Privacy Rules (“CBPR”) Forum as an Associate member. It is the first country to declare its application to participate in the Global CBPR as an Associate member since its inception one-year ago. In addition to its application, the UK co-hosted the Global CBPR Forum workshop “At One Year: Challenges and Opportunities”, which took place between April 17 to April 20, 2023.Continue Reading Global CBPR Forum: A New International Data Transfer Mechanism

On 29 March 2023, the UK Information Commissioner’s Office (“ICO”) published updated Guidance on AI and data protection (the “Guidance”) following “requests from UK industry to clarify requirements for fairness in AI”. AI has been a strategic priority for the ICO for several years. In 2020, the ICO published its first set of guidance on AI (as discussed in our blog post here) which it complemented with supplementary recommendations on Explaining Decisions Made with AI and an AI and Data Protection risk toolkit in 2022. The updated Guidance forms part of the UK’s wider efforts to adopt a “pro-innovation” approach to AI regulation which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s approach to AI regulation, see our blog post here).

The updated Guidance covers the ICO’s view of best practice for data protection-compliant AI, as well as how the ICO interprets data protection law in the context of AI systems that process personal data. The Guidance has been restructured in line with the UK GDPR’s data protection principles, and features new content, including guidance on fairness, transparency, lawfulness and accountability when using AI systems.Continue Reading UK ICO Updates Guidance on Artificial Intelligence and Data Protection

On April 11, 2023, the Cyberspace Administration of China (“CAC”) released draft Administrative Measures for Generative Artificial Intelligence Services (《生成式人工智能服务管理办法（征求意见稿）》) (“draft Measures”) (official Chinese version available here) for public consultation.  The deadline for submitting comments is May 10, 2023.

The draft Measures would regulate generative Artificial Intelligence (“AI”) services that are “provided to the public in mainland China.”  These requirements cover a wide range of issues that are frequently debated in relation to the governance of generative AI globally, such as data protection, non-discrimination, bias and the quality of training data.  The draft Measures also highlight issues arising from the use of generative AI that are of particular concern to the Chinese government, such as content moderation, the completion of a security assessment for new technologies, and algorithmic transparency.  The draft Measures thus reflect the Chinese government’s objective to craft its own governance model for new technologies such as generative AI.

Further, and notwithstanding the requirements introduced by the draft Measures (as described in greater detail below), the text states that the government encourages the (indigenous) development of (and international cooperation in relation to) generative AI technology, and encourages companies to adopt “secure and trustworthy software, tools, computing and data resources” to that end. 

Notably, the draft Measures do not make a distinction between generative AI services offered to individual consumers or enterprise customers, although certain requirements appear to be more directed to consumer-facing services than enterprise services.

This blog post identifies a few highlights of the draft Measures.Continue Reading China Proposes Draft Measures to Regulate Generative AI

The UK Information Commissioner’s Office (“ICO”) recently published detailed draft guidance on what “likely to be accessed” by children means in the context of its Age-Appropriate Design Code (“Code”), which came into force on September 2, 2020. The Code applies to online services “likely to be accessed by children” in the UK. “Children” are individuals under the age of 18. In order to determine whether an online service is “likely to be accessed” by children, companies must assess whether the nature and content of the service has “particular appeal for children” and “the way in which the service was accessed”. This new draft guidance provides further assistance on how to make this assessment, and is undergoing a public consultation until May 19, 2023.Continue Reading UK ICO Provides Guidance On When A Service Is “Likely To Be Accessed By Children” And Needs To Comply With Its Age-Appropriate Design Code