The regulation prohibits firms from requesting information from consumers that is "unrelated to the consumption of the products or services". Businesses have voiced concerns, saying the bill would prohibit them from collecting consumers' personal data such as name, gender, job, education,income, address, marital status and health-related information.
Under the regulation, such information cannot be disclosed without the prior permission of the consumer and cannot be passed on to other companies for marketing purposes. That means no business, including telecom providers and financial institutions, may buy or sell consumer lists without the consumers' permission.
Consumers can also seek compensation in cases where there is a loss of privacy, while marketers will face a fine equivalent to "five times the illegal revenue" gained.
According to Gabrielle Chou, chairman of the China Direct Marketing Association, while the regulation is a first step towards consumer privacy protection, it lacks provisions and details.
She said: "As a marketer you have to be aware of the privacy issue. Marketers are wondering at the moment how this (regulation) should be interpreted."