Privacy policies: considerations for cross-border companies

The approach taken can have significant implications for compliance, customer trust and business efficiency. While a global policy provides consistency across all jurisdictions, having separate regional policies for each region allows for greater flexibility to meet specific legal requirements and cultural differences.

A privacy policy is now a must-have for companies that deal with personal data. Data protection laws often govern how personal data is collected, processed, stored and shared, and they vary depending on the laws and regulations of the regions in which the company operates, and this is usually set out in privacy policies. 

A well-designed privacy policy is instrumental in this age of data. Choosing between a global or regional privacy policy is a complex decision that requires careful consideration. Companies should fully assess their circumstances and carefully determine the best approach moving forward.

Scale of cross-border operation and related compliance effort

Different regions may have different data compliance standards. If a company only operates in few jurisdictions, a regional privacy policy may already be sufficient. However, if a company has global operations spanning across more than just a few jurisdictions, it will need to carefully consider its approach.

A global policy may be more challenging to implement if a company operates in multiple jurisdictions. More administrative effort is needed to cross-check and combine the requirements of the different jurisdictions into one document whilst having separate privacy policies for each region may be an easier option to ensure and demonstrate compliance. Whether the company can monitor compliance also depends on whether regional teams are available and how the business works in practice. 

Local regulations may prescribe the language of the privacy policy. For example, in mainland of China, the privacy policy should be available in a comprehensible language such as Chinese. For companies that operate in regions that speak in different languages, specific requirements like this will also be a relevant factor.

Nature of the data

The types of data collected by a company can influence the choice between having a single global privacy policy or separate regional privacy policies. If a company collects highly sensitive data such as biometric data or financial information, regional policies may be more appropriate as these can be tailored to suit the requirements which need to be in place due to the sensitivity of the data. 

Conversely, if a company collects more generic and less sensitive data such as demographic data, a global policy may be sufficient.

Business considerations

Different regions may have different expectations and cultural attitudes towards privacy and data protection. By having separate privacy policies for each region, companies can tailor their policies to address these cultural differences and provide reassurance to their customers and employees. 

A single policy can be more straightforward and easier to understand. Having a single global policy can ensure consistency in data privacy and security practices across all regions where the company operates. This can reduce confusion and ensure that everyone is on the same page when it comes to data privacy and security.

A company should also consider its size, organisational structure and available resources when choosing between a global or regional policy. A global policy may be more difficult to implement for a smaller company with limited resources, while regional policies may be more manageable.

Co-written by Sara Chan of Pinsent Masons.