A Comparative Study on the Legislation of Personal Information Sale in Bankruptcy between China and the United States

Abstract

In the digital economy era, the commercial value of personal information is increasing, and it has even become the core asset of some companies, especially internet companies. In the event of bankruptcy, debtor companies tend to sell personal information to repay debts. The sale of personal information in bankruptcy proceedings triggers complex conflicts of interest between debtors, creditors, subjects of personal information, and recipients of personal information. How to prevent the improper sale of personal information in bankruptcy proceedings and how to fully and effectively protect the rights and interests of the subjects of personal information in bankruptcy proceedings are issues that urgently need to be resolved by legislation. The 2005 amendment to the US Bankruptcy Law responded to the issue of personal information transfer in bankruptcy proceedings and accumulated a wealth of judicial practice experience. The Personal Information Protection Law of China in 2021 also made principled provisions on this. By comparing the legislative framework for the sale of personal information in bankruptcy proceedings in China and the United States, we can find the general and special laws of legislation, summarize legislative experience, and promote the improvement of legislation. This Article, based on the sorting and analysis of the legislative framework for the sale of personal information in bankruptcy proceedings in China and the United States, mainly compares and analyzes from the dimensions of legislative model, salability of personal information, concept of protecting the rights and interests of personal information subjects, scope of application of legal rules, specific limiting conditions for the sale of personal information, degree of judicial intervention, and the impact of privacy policies. The study shows that the legislative framework for the sale of personal information in bankruptcy proceedings in China and the United States has commonalities in the salability of personal information and the emphasis on protecting the rights and interests of personal information subjects, reflecting the practical needs and data legislation trends. However, due to the differences in cultural background, political system, economic conditions, and legal system between the two countries, there are significant differences in the legislative model, scope of application, specific limiting conditions for the sale of personal information, degree and method of judicial intervention, and the impact of privacy policies, reflecting the “national characteristics”.