Guide to Japan’s Act on the Protection of Personal Information (APPI)

In this guide:

1. Key facets of the APPI
2. Guide your business to compliance
3. How Privacy Bee helps

Key facets of the Act on the Protection of Personal Information (APPI)

Japan created the Act on the Protection of Personal Information (APPI) in 2003 as a comprehensive legal framework designed to safeguard personal data and privacy, and it has since been amended several times to modernize the provisions included. The APPI encompasses a wide range of regulations aimed at ensuring responsible data handling and security while empowering individuals with rights to their personal information. To enforce business compliance and truly back this act, Japan created the Personal Information Protection Commission (PPC) to serve as an independent administrative body.

The APPI was created largely as a response to growing concerns around the handling of personal data in the digital age. Rapid advancements in technology created new challenges for protecting individuals’ privacy, so the Japanese government recognized the need for a legal framework to ensure the safe and responsible handling of personal identifiable information (PII).

More specifically, the APPI provides Japanese residents—referred to as data subjects in this context—with the following enumerated rights:

1. The right to access the data that controllers have on the data subject in a timely fashion.
2. The right to revise any held data, with mandates in place to compel controllers to address a revision request within two weeks.
3. The right to delete personal data that a controller currently possesses.
4. The right to stop data controllers from using or transferring the data subject’s data to third parties if the use case is different from that which the individual consented to previously, or if the data was obtained illegally. Note: this also applies if a data breach or another rights infringement has occurred.

The extraterritorial scope of the APPI requires that data controllers located outside of Japan still comply with the rights and regulations outlined in the act if they are collecting or processing the data of a Japanese resident.

As with most data privacy bills around the world, the APPI also includes the following provisions:

• Definition of Personal Information: Personal information is defined broadly, encompassing any data that can identify an individual. This includes names, addresses, phone numbers, and digital identifiers like IP addresses. This wide-ranging definition ensures that various forms of personal data are protected.
• Principles of Data Handling: Organizations must follow specific, stated principles when handling personal data. These principles include obtaining consent from individuals before collecting their data, disclosing the purpose of data usage, and limiting data collection to only the extent for which it is needed.
• Data Security Measures: Obligations are imposed on organizations to implement appropriate security measures to prevent data breaches and unauthorized access. This is crucial in the age of innovative cyber threats and data breaches.
• Cross-Border Data Transfers: The transfer of personal data outside of Japan is strictly regulated. Doing so requires organizations to ensure the recipient country has equivalent data protection laws, or consent must be explicitly obtained from the individuals whose data is being transferred.
• Accountability and Compliance: Organizations are required to establish internal rules and mechanisms to ensure compliance. This may include designating a Personal Information Protection Manager for larger organizations with a high degree of risk or the potential to cause significant damage.

Over time, Japan looks certain to further amend the APPI and continue enhancing consumer protections as the digital landscape changes. Business leaders must keep a careful eye on this legislation along with the many other data privacy laws around the world when marketing and selling to an international audience.

Source: Personal Information Protection Commission JAPAN

Guide your business to compliance

The implications of Japan’s APPI for businesses are significant and wide-ranging. In a world where data is often referred to as the “new oil,” the responsible handling of personal information is not just a legal requirement but a critical aspect of maintaining a positive reputation. Viewed differently, data privacy and security can be an opportunity to build consumer trust and brand appreciation by showing a strong resolve to protect employee and customer data.

As more companies are breached and threat actors continue to craft more dangerous cyberattacks and scams, the value of taking data privacy seriously will continue to increase and pay dividends over time. Only a small percentage of companies today properly achieve consent and can claim compliance with the myriad of international laws.

Thus, any business looking to get ahead of the data privacy curve should consider the following:

• Understand Scope and Definitions: To comply with APPI, the first step for businesses is to thoroughly understand the scope of the law and the definitions it provides. APPI defines personal information broadly, including any data that can identify an individual, including names, addresses, and digital identifiers like IP addresses. Businesses should educate their workforce about these definitions and confirm there is a clear understanding of information protection procedures within the organization.
• Appoint a Personal Information Protection Manager: APPI mandates that certain businesses designate a Personal Information Protection Manager (PIPM). This individual is responsible for overseeing data protection practices within the organization. Their role includes developing and implementing data protection policies and ensuring compliance with APPI’s requirements. If you’re unsure if your business falls into this category, it’s better to be safe than sorry because noncompliance fines are expensive!
• Develop Internal Rules: Businesses should establish and maintain internal rules for handling personal information. These rules should outline how personal data is collected, processed, stored, and protected. They should also specify procedures for responding to data subject requests and reporting data breaches.
• Allow Consumers to Opt Out: Businesses are required to notify Japanese consumers about how their information will be collected and used, and give them the option to opt out in an easy to view and review manner. Businesses must ensure that their data collection practices align with these requirements and that they have mechanisms in place to record and manage consent.
• Implement Data Security Measures: Data security is a fundamental aspect of APPI compliance. Businesses must implement effective security measures to protect personal information from unauthorized access, leaks, and breaches. This includes encryption, access controls, and security assessments yearly at minimum. Employee training on data security best practices is essential and should be conducted proactively and reinforced regularly.
• Limit Data Collection: APPI requires that data collection should be limited to what is necessary for the intended purpose. Businesses should avoid excessive data collection and should regularly review their information collection practices to ensure compliance with this principle.
• Respond to Data Subject Requests: APPI grants individuals certain rights, including the right to access their data, request corrections, and even demand the deletion of their information under specific circumstances. Businesses should have procedures in place to promptly respond to these requests. This may include designating a point of contact for data subject inquiries.
• Cross-Border Data Transfers: If a business transfers personal data outside of Japan, it must ensure that the recipient country has equivalent or better data protection laws, or obtain explicit, informed consent from all individuals whose data is being transferred. This requires a thorough understanding of international data transfer regulations and may necessitate changes to internal data handling practices.
• Penalties for Non-Compliance: It’s essential to understand the penalties for non-compliance with APPI are steep. Violations can result in fines, and in severe cases, even imprisonment. It’s thus critical to inform executives and employees of the serious consequences of non-compliance to serve as a deterrent to any potential violations.
• Privacy By Design: Adopt a “Privacy By Design” approach when developing new products or services. This means the company considers data protection measures from the outset, rather than as an afterthought. Ensuring that data privacy is a fundamental part of the product or service design makes it far easier to guarantee compliance with APPI.
• Data Retention Policies: Establish clear data retention policies to determine how long personal information should be kept. Retaining data for longer than necessary can result in non-compliance with APPI’s principle mandating data is only collected and kept if necessary and for the minimum amount of time it is needed.
• Report Data Breaches Promptly: In the event of a data breach, businesses must have a protocol for reporting the breach to the relevant authorities and notifying affected individuals. Timely reporting is essential to mitigate the consequences of a breach and demonstrate a commitment to data protection.
• Seek Legal Counsel: For complex compliance issues or when navigating cross-border data transfers, businesses can benefit from legal counsel.

Compliance with the APPI is a critical responsibility for businesses operating in the country. By accounting for each of the aspects above, businesses can navigate the complexities of APPI proactively and ensure their processes and procedures align with legal requirements, which is vital for maintaining a strong reputation in the modern era.

How Privacy Bee helps

It’s clear that safeguarding personal data and imparting knowledge about data usage have become key concerns for businesses engaged in the delivery of online services. With the emergence of new regulations worldwide, there is a growing need for more prescriptive opt-out policies to provide consumers with more information about how their personal data rights are being respected. Regulations like the APPI empower consumers to scrutinize and erase their personal information, so organizations are now held to a greater level of accountability.

However, despite the proliferation of such regulations, the primary responsibility for overseeing, evaluating, and requesting the removal of personal data falls on individuals. This task becomes even more daunting when applied across an entire organization, making it nearly impossible for a single person or a small team to manage without professional assistance. Nonetheless, identifying and eliminating this data plays a crucial role in deterring cybercriminals, reducing a company’s vulnerability to data breaches. This is where Privacy Bee emerges as the ideal solution, streamlining the time-consuming process of monitoring and eradicating employee personal data on behalf of business leaders.

Privacy Bee curtails the spread of an organization’s personal data across the vast digital landscape while extending its protection to external vendors. This ensures third-party partners do not compromise your security defenses inadvertently. Because even though conducting risk assessments and vendor surveys is commendable, it’s essential to acknowledge vendors are particularly susceptible to breaches through subpar data privacy management, which would likely affect your own organization’s security.

By taking a proactive approach using Privacy Bee, your organization finally has a defense against the exploitation of sensitive data via social engineering, spear phishing and malware attacks. You already fortify your internal security practices, so it’s time to take control of your organization’s external data on multiple fronts.

In the billion-dollar surveillance industry, Data Brokers and People Search Sites are pivotal players profiting off of trades and transfers of your organization’s information with obscure and uncontrollable entities. The consequences of exposing private data on the internet are extensive and pose significant threats when acquired by malicious hackers. A single data breach can lead to productivity losses, expensive remediation efforts, and recurring breach incidents, which plague businesses over time. An initial breach sets off a chain reaction, impacting your bottom line and eroding brand value while destroying customer trust. Moreover, there are ripple effects to consider, such as increased employee turnover due to poaching and decreased productivity due to more sophisticated spam outreach.

Privacy Bee is designed to combat external threat actors that operate beyond your organization’s perimeters. By meticulously identifying all corners of the internet where your data resides and promptly removing it, Privacy Bee closes the data protection gap. The service even includes dark web monitoring and provides timely data breach notifications if another associated organization falls victim to an exploitation incident and potentially exposes your information in the process.

Our unwavering commitment is deeply rooted in the belief that privacy is an inalienable human right, transcending political discourse and negotiations. This is why Privacy Bee rigorously monitors user data for security vulnerabilities while holding the surveillance industry accountable. We compel Data Brokers, People Search Sites, and over 150,000 additional websites to delete stored data and opt out of further data collection.

Privacy Bee’s protective umbrella extends over a wide range of potential threats, including:

• Data breaches
• Spam emails
• Telemarketing calls
• Cyberstalking
• Swatting
• Doxxing
• Blackmail
• Identity theft

If you’re a business leader committed to securing both employees and customers, Privacy Bee empowers you to take control of your organization’s most vital employee and customer data. In this era where data protection is critical, Privacy Bee stands as your steadfast partner in the ongoing battle to preserve your personal and organizational integrity.