Nestlé Employee Convictions Highlight Interconnectivity of Chinese Data Privacy and Bribery Laws 

Six Nestlé employees and three employees of state-run Chinese hospitals were recently convicted for crimes relating to the illegal distribution of personal information. At the Lanzhou Intermediary People’s Court, the Nestlé employees were found guilty of illicitly obtaining personal information by providing bribes to foreign officials. Members of the hospital staff were found guilty of providing that information. Notably, the charges were brought under laws relating to the distribution of breast milk substitutes, not anti-bribery, data privacy or cybersecurity laws. The Anti-Corruption Report’s sister publication, PaRR, discussed the case with local experts who explained how Nestlé escaped liability and how the decision highlights the complicated nature of risk in China. See “Practitioners Take the Pulse of Anti-Corruption Compliance and Enforcement in China” (Mar. 15, 2017).

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