Taiwan: Amendment to the Taiwan Personal Data Protection Act – Increased fines for data breaches and establishment of the Personal Data Protection Commission

26 May 2023 2 minute read

- Share by email
- Share on
- Twitter
- LinkedIn
- Facebook
- Google plus
- Get link
- Get QR Code
- Download
- Print

In brief

Under the current Taiwan Personal Data Protection Act (PDPA), there is no independent data protection authority. The enforcement of the PDPA has been conducted by the central government authority in charge of the industry concerned or the local government concerned (collectively "Competent Authority").

Due to an increase in cases of personal data breaches in recent years with incidents affecting large numbers of data subjects, critics have raised concerns about the existing penalties being too lenient to halt the frequent data breaches. In a high-profile case involving the secondary use of national health insurance data, the Taiwan Constitutional Court ruled in August 2022 that the lack of independent data protection authority is against the Constitution and requested the establishment of the relevant legal system within three years. In response, the Taiwan Legislative Yuan passed the Amendment to the Personal Data Protection Act ("Amendment") on 16 May 2023, to address these concerns.

In depth

Under Article 27 of the PDPA, a non-government agency in possession of personal data files should implement proper security measures to prevent the personal data from being stolen, altered, damaged, destroyed or disclosed. The central government authorities in charge of the industries concerned may designate and order certain non-government agencies to establish a security and maintenance plan for the protection of personal data files and a guideline on disposing personal data following a business termination. If a non-government agency violates Article 27, the Competent Authority may order the non-government agency to rectify the violation within a specified period. If the non-government agency fails to rectify the violation in time, a fine between NTD 20,000 (approximately USD 666) and NTD 200,000 (approximately USD 6,666) will be imposed for each occurrence of the violation.

Increased fines for data breaches

The Amendment increases fines for violation of Article 27 of the PDPA to a range of NTD 20,000 (approximately USD 666) to NTD 2 million (approximately USD 66,666), which can now be imposed at the same time as the order to rectify the violation within a specified period. Failure to rectify within the specified period will be subject to cumulative fines in the range of NTD 150,000 (approximately USD 5,000) to NTD 15 million (approximately USD 500,000). For severe violations, fines can be increased to the range of NTD 150,000 (approximately USD 5,000) to NTD 15 million (approximately USD 500,000) in the first place.

This part of the Amendment will become effective after being published by the President.

Establishment of the Personal Data Protection Commission

The Amendment also designates the new Personal Data Protection Commission (PDPC) as the exclusive Competent Authority for personal data protection.

The preparatory office for the PDPC is expected to be established as early as August 2023. The next phase of preparation will be drafting the organizational law for the PDPC, with the goal of submitting the draft to the Taiwan Legislative Yuan for review in 2024. The initial staffing for the preparatory office is expected to consist of 40 to 50 officials responsible for handling personal data protection matters.

Impact

The Amendment reflects the Taiwan government's response to concerns regarding the current light touch enforcement of the PDPA. The increased fines for data breaches demonstrate the government's commitment to holding personal data collectors accountable for violations of their data protection obligations. With the establishment of a specialized and independent data protection authority, PDPC, it is expected that the enforcement of the PDPA would become much stronger.

Considering the impact of the Amendment, companies are suggested to review and strengthen data protection practices, including a thorough review of the data flows, external and internal privacy policies, procedures, and security measures to identify any gaps or weaknesses in the current data protection management and to ensure compliance with the PDPA.

Contact Information

Grace Shao
Principal and Head of IP Tech Practice Group
Taipei
Read my Bio
grace.shao@bakermckenzie.com

Sean Shih
Partner at BakerMcKenzie
Taipei
Read my Bio
sean.shih@bakermckenzie.com

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.