PIPL
China's comprehensive national law protecting personal information
WELL
Performance-based certification for building occupant health and well-being
Quick Verdict
PIPL mandates data privacy compliance for China operations with hefty fines, while WELL is voluntary certification advancing building occupant health via performance testing. Companies adopt PIPL to avoid penalties and access markets; WELL boosts productivity, retention, and ESG appeal.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial scope for foreign processors targeting China
- Consent-first basis without legitimate interests alternative
- Volume-threshold cross-border transfer mechanisms and exemptions
- Separate explicit consent for sensitive personal information
- Fines up to 5% annual revenue or RMB 50 million
WELL
WELL Building Standard v2
Key Features
- 10 core concepts: Air, Water, Light, Movement, etc.
- Mandatory preconditions plus point-based optimizations
- On-site performance verification testing required
- Certification tiers from Bronze to Platinum
- Continuous monitoring for ongoing compliance
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 August 20, 2021, effective November 1, 2021. 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 individual rights.
Key Components
- Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights, handler obligations.
- Core principles: lawfulness, necessity, minimization, transparency, accountability.
- Sensitive personal information (SPI) protections; seven legal bases led by consent.
- Compliance via PIPIAs, audits; no certification but mechanisms like SCCs, security reviews.
Why Organizations Use It
- Mandatory for entities handling China residents' data; fines up to 5% revenue.
- Mitigates operational disruptions, builds market trust, enables cross-border business.
- Enhances resilience, competitive edge in China's digital economy.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, ongoing governance. Applies globally to MNCs, all sizes; high complexity for cross-border ops. No formal certification but CAC enforcement.
WELL Details
What It Is
The WELL Building Standard (WELL v2) is a performance-based certification framework administered by the International WELL Building Institute (IWBI). It focuses on designing, operating, and verifying buildings to advance human health and well-being through evidence-based strategies across environmental, operational, and policy domains.
Key Components
- **10 core conceptsAir, Water, Nourishment, Light, Movement, Thermal Comfort, Sound, Materials, Mind, Community (plus Innovation).
- 24 Preconditions (mandatory pass/fail) and 102 Optimizations (point-earning).
- Built on public health research; certification via Bronze (40 pts), Silver (50), Gold (60), Platinum (80) with concept minimums.
Why Organizations Use It
- Enhances occupant health, productivity, and ESG reporting.
- Differentiates assets with verified performance for tenants/investors.
- Mitigates risks like poor IEQ; voluntary but tenant-demanded.
Implementation Overview
- Phased: gap analysis, design integration, verification, operations.
- Applies to new/existing buildings, all sizes/industries.
- Requires documentation review and on-site performance testing; recertify every 3 years.
Key Differences
| Aspect | PIPL | WELL |
|---|---|---|
| Scope | Personal data processing, privacy rights, cross-border transfers | Building health, indoor air/water quality, occupant well-being |
| Industry | All sectors handling China data, global extraterritorial | Real estate, offices, hospitality, education worldwide |
| Nature | Mandatory national law with CAC enforcement | Voluntary performance-based certification |
| Testing | DPIAs, security assessments, CAC reviews | On-site performance verification, annual monitoring |
| Penalties | Fines to 5% revenue, business suspension | Loss of certification, no legal penalties |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and WELL
PIPL FAQ
WELL FAQ
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