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Chinese Telcos Pledge to Tighten User Data Security

Legal Evening News, 2/22/11

In response to recent reports that Chinese telecom operator employees had sold users' personal data to private investigation agencies, China Mobile (NYSE: CHL; 0941.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) have pledged to protect private data in accordance with a court recommendation issued by Chaoyang District People's Court in Beijing.

In December 2010, Chaoyang District People's Court found fourteen individuals guilty on charges of conducting illegal business, including three telecom operator employees who illegally sold large volumes of private user data to the head of an unnamed investigations firm. The investigators then used the information to track down individuals with outstanding debts and otherwise investigate people's private affairs.

Keywords: scandal China Mobile China Unicom CHL 0762.HK 0941.HK 600050.SH CHU law litigation

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