The Act on the Protection of Personal Information (APPI) is Japan's primary data protection law, originally enacted in 2003 and significantly amended in 2017 and 2022 to align more closely with international standards, such as the GDPR. The APPI governs the handling of personal information by both private and public entities, emphasizing user rights and accountability and requires that businesses obtain proper consent from users when collecting or using personal data, including through cookies and tracking technologies.
Organizations must pursue a number of activities to achieve APPI compliance, which include:
Data disclosure:
Clearly disclose data collection practices and purposes
Obtain consent:
All data collection must be done with explicit user consent and implement user-friendly consent mechanisms
Data protection:
Organizations must safeguard data security and manage cross-border data transfers
Privacy Policy:
Organizations must keep and disclose up-to-date privacy policies
All businesses handling the personal data of individuals located in Japan—whether domestic or international—must comply with the APPI. This includes websites accessible in Japan, cloud services, and e-commerce platforms, even if the organization itself is not physically located in Japan.
Japan’s APPI gives residents a set of data privacy rights, including letting consumers:
Request access to their personal information, including what data is held and the purposes for its collection
Request that inaccurate, incomplete or out-of-date information be corrected
Request the erasure of their personal information under certain circumstances
Right to file complaints if they believe their rights have been violated
Request the suspension of data use or disclosure if consumer believes information is being handled unlawfully
Notification to affected individuals and the Personal Information Protection Commission in the event of a data breach
Cookies that collect personal information, such as IP addresses or browsing behavior, fall under the scope of the APPI. Consent is especially required when cookies are used for purposes beyond essential site functionality, such as targeted advertising or analytics, making it crucial to provide clear opt-in options and cookie categorization.
APPI non-compliance can lead to administrative orders, public reprimands, and fines. In severe cases, criminal penalties may apply, including imprisonment and substantial financial penalties for both individuals and companies that fail to meet the law’s requirements.
APPI compliance can be maintained through implementing a number of privacy best practices:
Conduct data and cookie audits:
Review current data practices to identify areas that need adjustment to align with the APPI
Update privacy and cookie policies:
Revise privacy notices to clearly outline data practices, consumer rights, and how to exercise those rights
Implement consent management:
Manage cookie use and consent with a comprehensive consent management platform like CookieHub
Educate employees:
Give employees training on the importance of compliance with APPI
Implement breach processes:
Ensure clear pathways for notifying about breaches
Assign a privacy officer:
Ensure an overseer is a part of your organization to manage compliance
The APPI applies to any business operator handling personal information in Japan. It also applies extraterritorially to foreign entities that collect or use personal data of individuals located in Japan in connection with providing goods or services.
Under the APPI, personal data refers to information about a living individual that can identify that person, including name, date of birth, or other descriptors, either alone or in combination with other data. It also includes personally identifiable codes and data that can be readily collated to identify individuals.
Sensitive personal information (referred to as "Special Care-Required Personal Information") includes details such as race, creed, social status, medical history, criminal records, and information about physical or mental disabilities. Handling such data requires obtaining the individual’s prior consent.
The Personal Information Protection Commission (PPC) is the primary regulatory authority responsible for enforcing the APPI and overseeing data protection compliance in Japan.
Individuals who process personal information strictly for personal use are generally exempt. Additionally, the APPI provides limited exemptions for media organizations, academic institutions, and certain government functions when performing activities related to freedom of expression or academic research.
You can find official guidance and updates on the Personal Information Protection Commission (PPC) website. Legal and compliance professionals specializing in Japanese privacy law can also provide in-depth insights and resources.
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