Alston & Bird LLP recently published an article on Lexology warning that Russia has new data collection rules that will go into effect September 1, 2015. These new regulations will affect U.S. businesses with websites or mobile apps that collect personal information from Russian citizens. The new rule states that companies that acquire personal data from Russian citizens will be required to first process and store such personal information on servers in Russia.
According to this article, this "Russian Data Localization Law" will apply to "every foreign entity that targets Russian citizens, whether through a Russian language website directed at Russian nationals, or as an entity with regional headquarters in Russia."
Key parts of the Localization Law:
- U.S. businesses that do not have pre-existing servers to first process and store Russian citizens' personal data, will need to set up servers in Russia or contract with a third-party vendor to set up the required local servers in Russia.
- The initial collection and processing of data must first occur in Russia, but the data may then be transferred out of the country to a duplicate database, as long as the server has adequate protection of personal data and fulfills the requirements of the Russian jurisdiction.
- Companies must obtain written consent from the data subject before transferring data to a cross-border server.
- Will apply to foreign companies targeting Russian data subjects, whether or not the companies have a branch or office in Russia.
- Will apply to websites translated into Russian, having a single webpage in Russian or having a .ru domain.
The full scope of penalties for noncompliance with this law has not been defined. However, the biggest risk is having your website shut down or having access to your website restricted.
To read the full details of the law, what steps your company needs to take to be compliant and government recommended best practices, please see the full article: Russia's tougher rules on data collection effective in September: U.S. companies with websites or mobile apps targeted to Russia beware.
For additional information on Russian's Data Localization Law, see these other Lexology articles:
· New Russian data storage requirements
· How businesses can prepare for the Russian Data Protection Law
· Fortress Russia - the Russian Data Localization Law
· The storage and processing of Russian citizens' personal data in databases located outside Russia to be banned
Further Resources on Russian Translation and Localization Services
If you are planning to do business in Russia, it is important to understand the needs of your target customers. You will always need to understand the consumer behavior, the language and the key insights about the market.
Globalization Partners International (GPI) has created an extensive overview of globalizing websites for Russian consumers in a white paper, Website Globalization and E-Business Russia, which is available via a free download in PDF format.
Additionally, please review our resources and blogs that are particularly relevant:
- Culture and E-Business in Russia - Infographic
- Russian Website Localization and E-Business
- E-Commerce Russian Style
- Challenges with Russian Marketing Translation
Please feel free to contact GPI at firstname.lastname@example.org with any questions about our language and technology services. Also let us know if you have any interesting blog topics you would like us to cover in our future blogs. You may request a complimentary Translation Quote for your projects as well.
About the Author
Global Digital Marketing Manager. Natalie was born and raised in the state of Montana, USA where she graduated from The University of Montana with an undergraduate degree in Business Administration. Her international experience includes two summer programs, one at The European Business School in Germany and the other at The University of Brescia in Italy. She studied a variety of global business subjects including international business, trade, culture and language. Key projects for her undergrad studies included meeting with executives from large corporations such as Lufthansa, Opel, and The European Central Bank as well as working with the design team on the marketing plan for the 2015 World Fair in Milan, Italy. She has a range of global event management experience including organization of the Annual Mansfield Conference on the Middle East and the China Town Hall meeting series. Her hobbies include yoga, cooking, reading, being outdoors and traveling.More Content by Natalie Williams