Four banks violated the personal data law when they disclosed customer data to third-party marketers, the privacy watchdog has declared.

The Office of the Privacy Commissioner for Personal Data received 459 complaints in relation to mishandling of personal data during the first five months of the year, representing an 18 percent increase over the same period in 2010.

Four banks - Citibank, Wing Hang Bank, Fubon Bank and Industrial and Commercial Bank of China (ICBC) - were complained of in 2008 and 2009 about transferring customers' personal data to thirty-party marketers without consent.

Investigation by the office revealed the banks had signed contracts with insurance companies agreeing to transfer some customer data.

In one case, a complainant applied for a credit card at Citibank and submitted his personal data as required. Subsequently he received a call from an insurance company in May 2009. The caller revealed that the insurance company had obtained the client's information from Citibank.

Another complainant received a direct marketing call in July 2009 from an insurance company after she had closed her Fubon Bank account earlier that month.

The caller thanked her for using the services of the bank and promoted an insurance product.

The privacy office found that the font size of the Personal Information Collection Statement used by banks was too small for consumers to read.

The customer was provided only one space to sign on the service application form. Hence he had to choose between giving up the application for the service or agreeing, perhaps unwittingly, to the transfer of his personal data to unrelated third parties for direct marketing purposes and monetary gains.

Citibank, Fubon Bank and ICBC have given the commissioner written undertakings to remedy the contraventions and to ensure that the contravention will not happen again.

An enforcement notice has been issued to Wing Hang Bank ordering the bank to comply with the Personal Data (Privacy) Ordinance.

Privacy Commissioner Allan Chiang Yam-wang acknowledged that some businesses have made obvious improvements in the protection of personal data privacy.

"However, contravention of the requirements under the ordinance are still prevalent and the office has been handling an increasing number of complaints," said Chiang.

"The situation is unsatisfactory. The government has a number of proposals to amend the ordinance to tighten up regulation on the collection and use of personal data," he said.

China Daily

(HK Edition 06/21/2011 page1)