Hong Kong data protection laws: a 2025 guide
If your business collects or uses customer information in Hong Kong, compliance with the Personal Data (Privacy) Ordinance (PDPO) is not optional — it’s a legal requirement. In 2025, regulators are placing greater scrutiny on small and medium enterprises (SMEs), making data protection a priority across all sectors. Penalties for non-compliance can be severe, with fines reaching HK$1 million or more in serious cases, alongside lasting reputational damage.
What is the PDPO?
The PDPO is Hong Kong’s core data protection law. It applies to all entities that collect, store, or use personal data in Hong Kong, including startups, sole proprietors, and SMEs.
Key principles include:
- Data collection must be lawful and fair
- Personal data must be accurate and kept up-to-date
- Data must be used only for stated purposes
- Data users must take reasonable security precautions
- Individuals have the right to access and correct their data
Even small-scale businesses, such as clinics, e-commerce stores, or recruitment firms, must follow these rules if they handle client or employee data.
What are the key compliance obligations for SMEs?
As a data user, your business must:
1. Notify customers when collecting data
- Provide a Personal Information Collection Statement (PICS).
- Clearly explain the purpose and intended use.
2. Implement data protection measures
- Use password-protected systems and encrypted storage.
- Limit access to personal data to relevant staff only.
3. Ensure data accuracy and retention limits
- Do not keep data longer than necessary.
- Set internal policies for data review and disposal.
4. Enable data access and correction requests
- Respond within 40 days under the PDPO.
What happens if there’s a data breach?
Under updated data breach regulations, companies are expected to:
- Contain the breach immediately.
- Notify the Office of the Privacy Commissioner if the breach poses a real risk of harm.
- Inform affected individuals where appropriate.
Recent PDPO enforcement actions show that even small companies can be penalised for failing to take basic precautions — including failure to encrypt files or misusing client databases.
What are the penalties?
The Privacy Commissioner for Personal Data (PCPD) has the power to issue:
- Enforcement notices (legal orders to correct breaches)
- Fines of up to HK$50,000 per offence — and more for repeated or serious breaches
- In some cases, criminal prosecution
Failure to comply with a PCPD enforcement notice can result in imprisonment of up to 2 years.
How can SMEs stay compliant?
Practical steps include:
- Review and update your privacy policies.
- Train staff on data protection basics.
- Create a simple data retention and breach response plan.
For more on staff training obligations, see our blog on employment law compliance for SMEs.
Can AI help with PDPO compliance?
Yes. Ask.Legal’s AI legal compliance assistant helps SMEs:
- Audit internal data handling practices
- Flag missing privacy statements or security risks
- Generate compliant contract clauses and policies
- Stay up to date with Hong Kong data protection laws
It’s ideal for small businesses with limited in-house legal support.
Need help navigating this issue? Check out Ask.Legal — our AI-powered legal assistant is ready to help 24/7.
