JAPAN Law and Practice Contributed by: Junichi Ueda, Etsuko Hara, Nobuto Shirane, Takahiro Hayase, Yutaka Shimoo and Miki Goto, Anderson Mori & Tomotsune
Proposed Amendment to the APPI: An Overview of the 2026 Bill Japan is preparing a major amendment to the APPI, following Cabinet approval of the relevant bill on 7 April 2026. The amendment aims to respond to two competing policy needs: promoting the legitimate use of data, including for AI and statistical analysis, while strengthening safeguards against increasingly sophis - ticated privacy risks. The bill is expected to come into force within two years from promulgation, subject to the Cabinet Order. A key feature is the promotion of appropriate data utilisation. The amendment would exempt certain pro - cessing from consent requirements where personal data or publicly available sensitive personal informa - tion is used solely to create statistical information, including AI development that can be characterised as statistical analysis. It would also relax consent require - ments where the processing is clearly not contrary to the individual’s intention and is unlikely to harm the individual’s rights or interests. At the same time, the amendment introduces more risk-based protections. Special rules would apply to personal information of children under 16, includ - ing involvement of legal representatives and a duty to consider the best interests of the child. New rules would also apply to facial feature data and similar biometric information, including notification require - ments, relaxed conditions for suspension requests, and restrictions on opt-out third-party transfers. The bill also addresses improper data use. It would regulate information that is not necessarily personal information but can be used to approach or influence specific individuals, and would strengthen obligations when using the opt-out system for third-party transfers. Finally, enforcement would be significantly enhanced through more flexible PPC orders and recommenda - tions, measures against third parties assisting viola - tions, increased criminal penalties, and the introduction of an administrative surcharge system for serious viola - tions involving large volumes of personal data. 8.2 Geographical Scope The APPI regulates the processing of personal informa - tion by information handlers in Japan. Foreign compa -
nies doing business in Japan must therefore comply with the APPI when they process personal information. In principle, the APPI does not apply to the processing of personal information outside Japan. However, if a foreign company that does not have an office in Japan processes personal information of a data subject in Japan in relation to sales of goods or provision of ser - vices to individuals or entities in Japan, the foreign company is required to comply with the APPI even if personal information of that data subject is processed outside Japan (Article 171 of the APPI). 8.3 Role and Authority of the Data Protection Agency The PPC is the primary authority with oversight over the APPI. The PPC is an independent administrative commission that ranks at a national administrative lev - el similar to that of the JFTC and the National Public Safety Commission. The PPC is composed of a chair - person and eight members, as well as a secretariat. An information handler must notify the PPC about data incidents. The PPC can request a report from an information handler or conduct an on-site inspection, if necessary, for compliance with the APPI. If an informa - tion handler breaches the provisions of the APPI, the PPC will first advise the information handler to cease or correct the violation. If this advice is not followed, the PPC will then issue a formal order to take the action requested in the earlier advice if the violation of impor - tant individual rights is imminent. An information han - dler who fails to comply with the formal order may be subject to a fine of up to JPY1 million and/or a prison sentence of up to one year (in the case of an individual) and to a fine of up to JPY100 million (in the case of a corporation) (Articles 148, 178 and 184 of the APPI). 9. Looking Forward 9.1 Upcoming Legal Reforms No information has been provided in this jurisdiction.
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