Standards Comparison

    PIPL

    Mandatory
    2021

    China's comprehensive regulation for personal information protection

    VS

    ISO 37301

    Voluntary
    2021

    Certifiable international standard for compliance management systems

    Quick Verdict

    PIPL mandates strict personal data protection for China operations with hefty fines, while ISO 37301 offers voluntary CMS certification for broad compliance. Companies adopt PIPL for legal survival in China; ISO 37301 for global governance and stakeholder trust.

    Data Privacy

    PIPL

    Personal Information Protection Law (PIPL)

    Cost
    €€€€
    Complexity
    Medium
    Implementation Time
    6-12 months

    Key Features

    • Extraterritorial scope for foreign processors targeting China
    • Explicit separate consent for sensitive personal information
    • Cross-border transfers via security reviews, SCCs, certification
    • Fines up to 5% annual revenue or RMB 50 million
    • Mandatory impact assessments for high-risk processing activities
    Compliance Management

    ISO 37301

    ISO 37301:2021 Compliance management systems

    Cost
    €€€€
    Complexity
    High
    Implementation Time
    12-18 months

    Key Features

    • Certifiable requirements replacing guidance-only ISO 19600
    • HLS alignment for integration with other ISO standards
    • Risk-based compliance obligations and planning approach
    • Leadership commitment and organizational culture emphasis
    • Whistleblowing channels with anti-retaliation protections

    Detailed Analysis

    A comprehensive look at the specific requirements, scope, and impact of each standard.

    PIPL Details

    What It Is

    Personal Information Protection Law (PIPL) is China's comprehensive national regulation enacted in 2021, effective November 1. It governs collection, processing, storage, transfer, and deletion of personal information with extraterritorial reach. Modeled partly on GDPR, it uses a risk-based approach emphasizing consent, minimization, and security.

    Key Components

    • Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights.
    • Core principles: lawfulness, necessity, minimization, transparency, accountability.
    • Sensitive personal information (SPI) like biometrics, health data requires explicit consent.
    • Compliance via impact assessments, no broad legitimate interests basis.

    Why Organizations Use It

    • Mandatory for entities handling Chinese residents' data; fines up to 5% revenue.
    • Enables market access, builds trust, reduces breach risks.
    • Strategic for multinationals in e-commerce, fintech, healthcare.

    Implementation Overview

    Phased: gap analysis, data mapping, policies, controls, audits. Applies globally to China-targeting firms; 6-12 months typical, no formal certification but CAC reviews for transfers.

    ISO 37301 Details

    What It Is

    ISO 37301:2021, officially "Compliance management systems – Requirements with guidance for use," is a certifiable international standard for establishing, implementing, maintaining, and improving effective compliance management systems (CMS). Applicable to all organization sizes and sectors, it uses a risk-based approach, Plan-Do-Check-Act (PDCA) cycle, and High-Level Structure (HLS) for integration.

    Key Components

    • Leadership, policy, roles, and compliance culture
    • Compliance obligations identification, risk assessment, objectives, planning
    • Resources, competence (per ISO 37303), awareness, communication, whistleblowing
    • Operational controls, third-party management, investigations
    • Monitoring, measurement, internal audits, management reviews
    • Nonconformity handling, continual improvement Follows 10 HLS clauses; supports certification via accredited bodies like ANAB.

    Why Organizations Use It

    • Provides third-party assurance, reduces fines/reputational risks
    • Builds integrity culture, supports ESG/SDGs (e.g., climate via Amd 1:2024)
    • Integrates with ISO 9001/14001/27001 for efficiency
    • Meets stakeholder demands, enhances trust/competitiveness

    Implementation Overview

    Phased: context analysis, design/resourcing, controls/training, evaluation/audit, sustain. All sizes; certification involves initial/surveillance audits in 3-year cycle. (178 words)

    Key Differences

    Scope

    PIPL
    Personal information protection and data flows
    ISO 37301
    General compliance management systems

    Industry

    PIPL
    All sectors handling China PI, extraterritorial
    ISO 37301
    All industries worldwide, all sizes

    Nature

    PIPL
    Mandatory national law with fines
    ISO 37301
    Voluntary certifiable standard

    Testing

    PIPL
    DPIAs, CAC security reviews, audits
    ISO 37301
    Internal audits, management reviews, certification

    Penalties

    PIPL
    Fines up to 5% revenue, suspensions
    ISO 37301
    Loss of certification, no legal fines

    Frequently Asked Questions

    Common questions about PIPL and ISO 37301

    PIPL FAQ

    ISO 37301 FAQ

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