Data Privacy in Japan: Legal Requirements

Published on October 31, 2025 and written by Cyril Jarnias

The modern digital era presents a growing challenge in data privacy protection, a universal concern that takes on particular significance in Japan, a country at the forefront of technology and innovation. In response to this rapid evolution, Japan has established robust legislation to govern the management and protection of personal information, notably through the Act on the Protection of Personal Information (APPI), which aims to strike a delicate balance between technological innovation and respect for individual rights. Through a rigorous approach and increased awareness, these privacy obligations seek to protect user data while fostering trust in an increasingly dynamic and interconnected digital environment.

Understanding Corporate Compliance in Japan

The Act on the Protection of Personal Information (APPI), which is central to Japan’s data privacy laws, provides a comprehensive framework for businesses to properly manage and protect personal information. This law and its amendments have a significant impact on all business operations.

Overview and Basic Rules of the Act on the Protection of Personal Information (APPI)

1. Main Objective

The Act on the Protection of Personal Information was enacted in 2003 and fully implemented in 2005. Established in response to increased personal data usage due to the development of the internet and technologies, this law aims to protect individuals’ rights and interests while balancing the promotion of data utilization.

2. Main Obligations

• Purpose Clarity During Collection and Acquisition: When collecting personal information, it’s necessary to specify the purpose of its use and to publish or notify this purpose.
• Appropriate Management Obligation: Implement security management measures (technical and organizational measures) to protect personal data against leaks, unauthorized access, etc.
• Regulation of Provision to Third Parties: It’s prohibited to provide information to third parties without the consent of the data subject. However, there are exceptions.
• Obligation to Respond to Disclosure Requests: When an individual requests disclosure or correction of their information, it’s necessary to respond promptly and appropriately.

Amendment Content and Recent Trends

In recent years, frequent amendments have strengthened regulations and addressed new challenges.

• 2020 Amendment (implemented in 2022)
  • Mandatory reporting and notification in case of data leaks
  • Strengthened rules for verifying data subject consent
  • Establishment of the anonymized information system
• 2024 Amendment
  • Expanded scope of reporting for leaks, etc.: Applies not only to personal data but also to certain personal information.
  • Strengthened measures against web skimming: Response to potential unfair collection on e-commerce sites, etc.

These changes often make it essential to build stricter security structures and revise internal policies.

Penalties for Violating the Law

In case of violation, severe penalties are provided. For example:

• Failure to comply with an improvement order after violating the law: Maximum fine exceeding one billion yen or individual imprisonment.
• Many cases of damage payments to plaintiffs have already been recorded following lawsuits over information leaks, with some cases predicting decisions up to over 3 billion yen, representing a major financial burden risk.

Specific Data Privacy Requirements in Japan

Japan’s Act on the Protection of Personal Information (APPI) – Key elements explained below.

1. Notification and Consent Requirements: When collecting personal information, it’s necessary to specify the purpose of use as much as possible and to inform or disclose it to the data subject in advance. Additionally, for sensitive personal information, obtaining the data subject’s consent is generally mandatory. If collected data is used for purposes other than originally intended, the person’s prior consent is also required.
2. Individual Rights: Data subjects have the right to request disclosure, correction, deletion, or suspension of use of their personal data held. Recent revisions also allow requesting these measures not only in cases of inappropriate acquisition or leakage but also when data use becomes unnecessary.
3. Business Obligations Regarding International Data Transfers: For cross-border transfers of personal data, it’s necessary to confirm that the destination country offers data protection levels equivalent to or higher than Japan’s and to provide proof of this. Accountability obligations toward the recipient and obtaining prior consent from the data subject are also imposed.
4. Data Security and Management Measures: Maintaining data accuracy and currency is crucial, and companies are required to implement security management measures, such as employee training and subcontractor supervision. In case of leakage or unauthorized access, prompt incident reporting and corrective measures are mandatory. The 2024 revision expanded the scope of regulations applying to personal information itself.
5. Recent Legislative Revisions: Main points of recent legislative revisions: 1) expanded regulatory scope to certain personal information; 2) strengthened leak reporting and notification obligations; 3) enhanced guidelines for security management measures (such as combating online skimming). This has necessarily pushed many Japanese companies to review their privacy policies and introduce new measures.
6. Impact on Businesses Operating in Japan: All organizations, including foreign companies present in or considering entering the Japanese market, must comply with these mandatory requirements (extraterritorial application principle). A high-standard recognition system similar to GDPR is in place, facilitating cooperation with the EU. However, it’s strongly recommended to be vigilant about penalties for violations or examples of significant damages. Example: fines up to 1% of annual revenue or heavy penalty fees in case of exceedance, requiring frequent verification of current concerns. Monitoring body: Dedicated PPC within the independent administrative organization…

Comparison Between GDPR and Japanese Laws

Geographical Scope

• GDPR applies not only to companies established within the EU but also to non-European companies processing personal data of EU residents. This includes providing goods or services and monitoring behaviors.
• APPI legislation applies to businesses operating in Japan and aims to protect personal information of Japanese citizens and residents in Japan.

Consent Requirements

• Under GDPR, collecting and processing personal data requires explicit consent. This consent must be specific, freely given, and revocable.
• APPI also requires data subject consent, but the detailed requirements aren’t as strict as GDPR’s. Additionally, processing of anonymized data is partially regulated.

Personal Data Rights

Both legislations recognize rights such as:

• Right to access data
• Right to rectification
• Right to erasure (right to be forgotten)

However, GDPR guarantees additional rights, such as portability (transfer to another operator). Conversely, APPI has special provisions regarding anonymized information, specific to Japan.

Business Obligations and Security Measures

• GDPR requires, in certain cases, the appointment of a DPO (Data Protection Officer) and conducting a DPIA (Data Protection Impact Assessment). Advanced technical and organizational measures are also required.
• APPI doesn’t contain such obligations, but there are basic security standards, such as measures to prevent unauthorized access and leak response plans.

Penalties

There are significant differences in penalties for violations:

GDPR	APPI
Fines up to €20 million or 4% of global annual revenue	Up to approximately ¥100 million or criminal penalties such as imprisonment

Although financially less strict than GDPR, APPI penalties remain severe.

Recent Evolution of Laws in Japan and Europe

On the Japanese side, an APPI revision took effect in April 2022, with reinforced leak notification obligations and established rules for cross-border transfers. Meanwhile, on the GDPR side, discussions continue to strengthen international cooperation.

Strategies for Optimizing Data Protection in Japan

To optimize data protection in Japan, it’s effective to rely on the APPI legal framework by implementing the following strategies:

1. Advanced Implementation of Encryption Technologies
   • Japanese companies use data encryption technologies to protect customer information and confidential data. Approaches such as Zero Trust model and security by design are particularly emphasized. These integrate security measures from the system design phase, thereby reducing risks of unauthorized access and leaks.
   • Additionally, AI-based threat detection systems have also been introduced, enhancing response capability to new cyber threats.
2. Strict Regulation of Data Access
   • Implementing systems to avoid unnecessary access, such as configuring permissions by data managers and monitoring logs, is crucial. Particularly, the APPI revision requires strict consent and prohibits using personal data for purposes other than intended, prompting Japanese companies to strengthen their management systems.
   • For example, in large IT companies, role distribution and introduction of access control policies for each employee have improved compliance rates.
3. Employee Training and Continuous Education
   • Beyond regular privacy policy reviews, disseminating this information to all staff is essential. Some companies successfully raise company-wide security awareness through online learning programs or workshops.

Success Cases

A major financial institution achieved results by improving transparency in the customer information provision process within a secure environment, through its information banking service. This initiative not only strengthened trust but also contributed to building new business models.

Methods for Adapting to Regulatory Advances and Technological Innovations

1. Ensuring Flexibility: To maintain compliance with new national and international laws (e.g., EU’s GDPR), establishing a regular review system is essential.
2. AI Utilization: Increased implementation of automated software such as real-time monitoring tools enables developing capabilities to solve new problems.
3. International Cooperation: Promoting Data Free Flow with Trust (DFFT) and sharing international standards are also considered important.

These strategies greatly contribute to strengthening competitiveness in the global market, not just in Japan.