![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0061.png)
partners, the scope for marketing the goods or services to include those offered by the
subsidiaries and partners was found to be too broad. It should have specified the types
of products or services that would be potentially marketed by these subsidiaries and
partners, which could be totally different from the products and services offered and
covered by the programme. Hence, it is likely that the purpose of the use of data,
nature of subsidiaries’ and partners’ business, and scope of marketing would fall outside
the reasonable expectation of the programme members. The Commissioner was of the
view that when the statement of purposes of use was drafted in such a manner that
there was no clear limit, it could not meaningfully be qualified as a purpose, whether in
general or specific terms, for the purposes of DPP1(3)(b)(i)(A). (See paragraphs 5.91 to
5.108 below for details on the new requirements regarding direct marketing.)
5.82
In another investigation, the Commissioner looked at the situation where frontline
telemarketers of an association approached the data subjects by phone. The
telemarketers asked the call recipients to provide contact data on the pretext of
sending gifts to them when in fact the data was transferred to an insurance company to
facilitate its direct marketing activities. As a result, the call recipients were not able to
ascertain with a reasonable degree of certainty the purposes of use of their personal
data and the classes of transferees. The Commissioner found that the association was in
breach of DPP1(3)(b)(i).
53
The Classes of Persons to Whom the Data May Be Transferred
5.83
Paragraph (B) of DPP1(3)(b)(i), which concerns the classes of persons to whom the data
may be transferred, is also very often the bone of contention between the data user
and the data subject. For example, a transaction involving the collection of personal
data from an individual may entail the further transfer of such data to a third party for a
purpose directly related to the original purpose of collection but the individual may not
be able to foresee the further transfer. In this connection, a specific transferee clause in
a PICS will help avoid any unpleasant surprise or dispute. The transfer of personal data of
a debtor by a credit provider to a debt collection agent for the purpose of debt
recovery is a case in point. In AAB No. 21/2009, a telecommunications company
transferred the personal data of a customer who had defaulted in payments of the
service fee to a debt collection agent. The AAB found the telecommunications
company had failed to expressly include the debt collectors in the class of transferees in
the PICS on or before collection of his personal data. The telecommunications company
was found to have contravened DPP1(3)(b)(i)(B). Again, in AAB No. 51/2011, the AAB
ruled that the telecommunications company in question should have specified clearly
that the debt collectors (instead of “agent”) were a permitted class of transferee.
5.84
It is also important to note that the word “use”, in relation to personal data, is defined in
section 2(1) of the Ordinance to include acts to “disclose” or “transfer” the data. In
other words, “transfer” is one type of “use”. On this basis, the Commissioner takes the
view that paragraph (B) in DPP1(3)(b)(i) should be read subject to paragraph (A). Put
simply, the transfer of data to a third party coming within paragraph (B) may only arise
where the purpose for such transfer comes within paragraph (A), but not otherwise.
53
See Investigation Report No.13-1138, available on the Website:
https://www.pcpd.org.hk/english/enforcement/commissioners_findings/investigation_reports/files/R13_1138_e.pdf