Data Security: Three Lessons From China’s First Criminal Compliance Case – Corporate and Company Law

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Case summary

Between 2019 and 2020, a network technology company (the
”suspect company”), through its Chief Technology
Officer (the ”CTO”), instructed the employees
(most of whom are technicians) to illegally obtain data from a food
delivery e-platform (the ”victim company”) by way
of data crawler technology for the suspect company’s business
purposes. This illegal act caused direct economic loss of more than
RMB 40,000 (approximately USD 6,000) to the victim company and is
suspected of committing the crime of illegally obtaining computer
information system data.

After entering the investigative phase of the case, the suspect
company obtained the forgiveness from the victim company by
actively compensating the loss. Upon receiving application of the
suspect company, the Putuo District Procuratorate of Shanghai
issued a procuratorial compliance proposal to the suspect company
and initiated a compliance review plan.

Corrective measures

As a first step, the procuratorate visited the suspect company
to examine the current status of…

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