Chinese law tightens control over company data on users

China is tightening control over data gathered by companies about the public under a law approved by its ceremonial legislature. The data protection law expands the ruling Communist Party’s crackdown on internet industries. It follows anti-monopoly and other enforcement actions against companies including e-commerce giant Alibaba and games and social media operator Tencent that caused their share prices to plunge.

The law takes effect Nov. 1. It follows complaints companies misused or sold customers’ data without their knowledge or permission, allowing it to be used for fraud or unfair practices such as charging higher prices to some users.