Data Protection

Data Protection

Cross-jurisdictional data protection compliance designed to work alongside your business, not against it.

Key Points

  • Japan's APPI is amended roughly every three years, and 2024-2026 tightened breach-reporting duties and enforcement. The key is whether your operations reflect the current reporting obligations—when and by when Commission reports and individual notices are required.
  • Companies handling EU data must comply with both the GDPR and Japan's APPI. Japan holds an adequacy decision, but that rests on observing the supplementary rules.
  • Cross-border data transfers require one of three bases: the recipient country's framework, the individual's consent, or a compliant transfer system. Do not overlook cases where using an overseas cloud amounts to provision to a third party in a foreign country.
  • On a data breach, reporting to the Personal Information Protection Commission (preliminary and final) and notifying affected individuals are, in principle, mandatory. Organize the thresholds, deadlines and exemptions in advance and build them into your response playbook.
  • A privacy policy is not set-and-forget: aligning it with the actual data flow—collection, purpose of use, third-party provision and retention period—is the foundation of legal risk management.

Introduction

Data protection law is one of the most rapidly evolving areas of law of the past decade. Beginning with the EU's GDPR (General Data Protection Regulation, effective 2018), powerful personal data protection laws have come into force one after another around the world, and enforcement has grown more active. As for penalties for violations, under the GDPR the fine is the higher of 4% of total worldwide annual turnover or EUR 20 million; under the APPI (Japan's Act on the Protection of Personal Information), a corporate penalty of up to JPY 100 million is expected to be introduced in the 2026 amendment.

The difficulty of data protection law lies in the fact that (1) multiple jurisdictions apply in overlapping fashion; (2) both technical and organizational measures are required; and (3) the reputational impact of a violation is greater than the fine itself. For multinational companies, SaaS providers, and companies operating e-commerce sites, data protection compliance is a management issue that bears directly on business continuity.

Areas of Practice

1. APPI (Act on the Protection of Personal Information) Compliance - Responding to the 2022 and 2026 amendments - Designing the privacy policy, purposes of use, and consent-acquisition flows - Reporting to the Personal Information Protection Commission and notifying data subjects upon a breach - Designing the use of pseudonymized and anonymized information - Building frameworks for third-party provision and management of entrusted parties - Consent for cross-border transfers and surveying the protection laws of the destination country

2. GDPR (EU General Data Protection Regulation) Compliance - Organizing the legal bases (consent, performance of a contract, legitimate interests, etc.) - Preparing records of processing activities (ROPA) and DPIAs (Data Protection Impact Assessments) - Responding to data-subject rights (right of access, right to erasure, right to portability) - Determining whether a DPO (Data Protection Officer) must be appointed, and supporting the role

3. Data Breach and Incident Response - Initial response upon discovery of a breach (including the 72-hour GDPR reporting requirement) - Directing forensic investigation and liaison with investigation firms - Preparing and submitting reports to supervisory authorities - Draft notifications to data subjects and guidance for call-center response - Damages negotiations and response to class actions

How We Approach Typical Matters

The following illustrate the kinds of matters we handle and how we would approach them. They are not descriptions of past engagements or results.

Scenario 1: Bringing a SaaS Provider into GDPR Compliance

A company that is compliant with Japan's Act on the Protection of Personal Information but has not addressed the GDPR may need to achieve compliance quickly once a significant contract with a European counterparty comes into view.

In such a matter we assist with (1) a gap analysis against GDPR requirements; (2) revision of the privacy policy and terms of use (bilingual Japanese/English); (3) preparation of records of processing activities (ROPA); (4) conducting a data protection impact assessment (DPIA); (5) preparing a DPA template for customers; and (6) designing an internal training program.

Scenario 2: Responding to Amendments to the Personal Information Protection Act

Businesses holding multiple categories of data such as point-of-sale records, membership data, security camera footage, and employee data often need to take stock of their internal data flows when the law is amended.

In this situation we provide integrated support: (1) company-wide data mapping; (2) review and restructuring of stated purposes of use; (3) advice on consent collection flows; (4) revision of agreements with service providers such as cloud vendors and marketing agencies; (5) revision of internal rules and manuals; (6) preparation of a breach response manual; and (7) training for directors and front-line staff.

Scenario 3: Responding to a Large-Scale Personal Data Breach

Where unauthorized external access exposes a large volume of customer data, public attention is high and the quality of the initial response largely determines the outcome.

In such a matter we assist with (1) directing the immediate response (evidence preservation and selection of a forensic investigator); (2) the preliminary report to the Personal Information Protection Commission; (3) drafting individual notices, FAQs, and the approach for the inquiry desk; (4) preparing the press release and website notice; (5) supporting the filing of a criminal complaint; (6) reporting to business partners; (7) preparing for damages claims or class actions; and (8) designing measures to prevent recurrence.

How to Engage Us

  1. Initial Consultation (first 30 minutes free / available online): We hear your current situation and challenges and organize the issues.
  2. Estimate and Proposal: We present the scope and timeline. We accommodate both project-based and retainer arrangements.
  3. Commencement and Progress Sharing: We report progress at each milestone and coordinate with your internal approval processes.
  4. Completion and Aftercare: We can also provide continued support with updates on legal amendments and enforcement trends, and periodic reviews.

Contact

For consultations in the data protection field, please reach out via our contact form. For emergency breach response, please note this and we will prioritize your matter.

Frequently Asked Questions

Q.We only offer services within Japan—do we need to comply with the GDPR?
The GDPR applies extraterritorially if either (1) you intentionally offer services to users located in the EU, or (2) you monitor the behavior of users located in the EU. A situation such as "a Japanese-only site that happens to have Japanese users residing in Europe" is in principle out of scope, but we make an individual determination based on factors such as multilingual support and whether you advertise to the EU.
Q.May we create our privacy policy by copying a template?
It is possible to satisfy the legal minimum items, but there are risks that (1) it is unlawful if it diverges from reality; (2) it inadequately addresses overseas regulation (such as the GDPR); and (3) it omits risk disclosures appropriate to the nature of your service. Customization to fit your business characteristics is essential.
Q.If a personal data breach comes to light, by when and what must we do?
Under the APPI, a preliminary report is required "promptly," a definitive report "within approximately 30 days," and notification to data subjects also "promptly." For matters within the GDPR's scope, a report to the supervisory authority "within 72 hours" is mandatory. The first 24 hours are critical, and our firm can provide emergency response.
Q.If we use a cloud service, does it become subject to cross-border transfer regulation?
If the physical storage location of the data is outside Japan, it in principle constitutes a cross-border transfer. You need one of the following: the data subject's consent, equivalent measures under the APPI, or recognition of the destination country (currently only the EU and the U.K.). When using a cloud service, the choice of the vendor's data-storage region is important.
Q.Must we always install a cookie banner?
For services aimed at the EU, prior consent (opt-in) is mandatory under the ePrivacy Directive. Japan's amended APPI likewise imposes a "confirmation of consent acquisition" obligation on the third-party provision of personal-related information via cookies. In practice, installing a cookie banner is standard for companies expanding globally.
Q.Must we appoint a DPO (Data Protection Officer)?
Under the GDPR, appointment is mandatory for (1) public authorities; (2) organizations that carry out large-scale, systematic monitoring; and (3) organizations that process sensitive data on a large scale. Even where it is not mandatory, a growing number of companies appoint one voluntarily to strengthen governance. Our firm can also provide an outsourced DPO service.
Q.When entering California, what is required for CCPA/CPRA compliance?
The central issues are: (1) preparing a Privacy Notice (additional disclosures for California residents); (2) installing a "Do Not Sell or Share My Personal Information" link; (3) a response flow for consumer rights (the right to know, the right to delete, the right to correct, and the right to opt out); (4) restrictions on the processing of sensitive information; and (5) managing the sale and sharing of data with third parties.
Q.Are there special regulations when we send data to China?
Under Chapter III of China's PIPL (Personal Information Protection Law), you need one of the following: (1) a security assessment filing within China; (2) conclusion of standard contractual clauses; or (3) obtaining personal information protection certification. For important data, China's Data Security Law and Cybersecurity Law must also be considered together.
Q.What frequency and content are desirable for internal data protection training?
The standard is once a year for all staff (fundamentals), twice a year for departments that handle a lot of data (applied topics plus real examples), and breach-response drills for managers. A hybrid of e-learning and in-person training is effective.
Q.Where should we start with data protection compliance?
Start with (1) data mapping (what data you collect, from where, where you store it, and to whom you pass it). This is the foundation for everything. Next, proceed through the steps of (2) identifying the applicable jurisdictions; (3) gap analysis; and (4) prioritization and an improvement plan.
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