Thailand’s Personal Data Protection Act 2019 (PDPA), which came into effect on June 1, 2022, represents the country’s first comprehensive data protection legislation. It was designed to regulate the use of personal data by both local and multinational organizations. By aligning with several principles found in the European Union’s General Data Protection Regulation (GDPR), the PDPA seeks to ensure that user data is handled with care and respect. However, despite these similarities, there are distinct differences that set the PDPA apart from the GDPR.
The PDPA imposes various obligations on data controllers and processors, including stringent consent requirements, rights for data subjects, breach notification protocols, and restrictions on cross-border data transfers. One of the most challenging aspects of compliance with the PDPA for multinational companies is adherence to these thorough requirements, especially when it comes to cross-border data transfers. These transfers may require businesses to navigate complex mechanisms such as adequacy decisions, exceptions, Binding Corporate Rules (BCRs), or Standard Contractual Clauses (SCCs) to ensure compliance.
Crucial to ensuring compliance with the PDPA are vendor privacy contracts. When vendors act as data processors, detailed data processing agreements are required. On the other hand, when vendors function as data controllers, data sharing agreements must be in place. This attention to vendor relationships and the accompanying legal requirements highlight the comprehensive nature of the PDPA. For multinational organizations, ensuring that these contracts are in line with PDPA standards is paramount, especially because non-compliance can result in severe penalties.
Compliance Across Sectors and Vendor Relationships
The PDPA extends its jurisdiction beyond the private sector to include specific sectors that were previously governed by fragmented regulations, such as government agencies, telecommunications, and the National Credit Bureau. This broad application underscores the importance of the PDPA and its role in unifying data protection standards across various sectors. However, this also introduces unique challenges for entities within these sectors as they must adapt to a more rigorous regulatory framework.
Despite the comprehensive intentions of the PDPA, businesses striving to achieve full compliance often encounter difficulties due to the absence of certain sub-legislations and official guidelines. The regulatory body under the PDPA, Thailand’s Personal Data Protection Commission (PDPC), has been gradually issuing sub-legislations to aid compliance efforts. Nevertheless, the evolving nature of data protection laws globally adds to the complexity, requiring businesses to remain vigilant and adaptable.
The increasing reliance on third-party vendors for data processing further complicates the regulatory landscape. Companies must carefully navigate these standards to ensure that all vendor-related activities comply with PDPA requirements. In this context, experts like Chanakarn Boonyasith, Pitchpasorn Whangruammit, and Pattaranun Hanwongpaiboon from Nishimura & Asahi emphasize the critical importance of understanding vendor privacy contracts. Their insights into key legal requirements and considerations provide valuable guidance for multinational organizations operating within Thailand.
Adapting to an Evolving Regulatory Environment
Thailand’s Personal Data Protection Act 2019 (PDPA), effective June 1, 2022, is the nation’s first major data protection law, regulating personal data use by both local and international organizations. Modeled after the European Union’s General Data Protection Regulation (GDPR), it aims to ensure the careful and respectful handling of user data. However, key differences distinguish the PDPA from the GDPR.
The PDPA mandates several responsibilities for data controllers and processors, such as strict consent guidelines, rights for data subjects, breach notification procedures, and limitations on cross-border data transfers. Especially challenging for multinational companies is compliance with these rigorous standards, particularly concerning cross-border data transfers. Businesses may need to navigate complex frameworks like adequacy decisions, exceptions, Binding Corporate Rules (BCRs), or Standard Contractual Clauses (SCCs) to stay compliant.
Vendor privacy contracts are crucial for PDPA compliance. When vendors serve as data processors, detailed data processing agreements are required. Conversely, when vendors act as data controllers, data sharing agreements must be established. This focus on vendor relationships and legal requirements highlights the PDPA’s thorough nature. For multinational firms, ensuring these contracts meet PDPA standards is essential, as non-compliance can lead to severe penalties.
