Regulations Listing: Corporate Citizenship

The Safe and Accurate Food Labeling Act of 2015 would require the Food and Drug Administration (FDA) to regulate the distribution and labeling related to bioengineered foods (often referred to as genetically modified foods or GMOs). The Act allows the FDA to use authority to take enforcement action against false or misleading labels, such as food falsely labeled “GMO free”.

The Safe Harbor Decision, allowed American companies to self-certify (without providing binding evidence) that they complied with European privacy standards to legally receive exports of personal data from the EEA to the U.S.

Following the revised Japan Revitalization Strategy in 2014, the Council of Experts Concerning the Corporate Governance Code was established in August of that year to formulate a Corporate Governance Code that would be adopted by the Tokyo Stock Exchange and applied to all companies, domestic or foreign, listed on the exchange. The Code outlines five general principles, focused on an overall goal of increasing mid- to long-term corporate growth.

In November of 2015, G20 leaders officially endorsed updates to the G20/OECD Principles of Corporate Governance. Originally released in 1999, and last revised in 2004, the Principles were once again in need of update following the rapidly changing landscape in both financial and corporate sectors, particularly due to the global financial crises of 2007/2008. According to a summary of the new Principles published in December of 2015, corporate governance is defined as “a means to create market confidence and business integrity, which in turn is essential for companies that need access to equity capital for long term investment.

Australia’s recently proposed Privacy Amendment (Notification of Serious Data Breaches) Bill 2015 impacts all entities covered by the Privacy Act 1988. The original act sets out rules for government agencies and private sector organizations to maintain and protect individuals’ private data, but does not require any specific reporting or notification in the event of a data breach. A draft bill is currently open to public comment until March 4, 2016. Once adopted, the bill would come into effect in 12 months.

On December 17, 2015, new EU data protection legislation was informally passed in the form of the EU General Data Protection Regulation (GDPR). The rules are expected to become official in the spring of 2016, at which point companies will have two years to adjust to the new regulations. According to a press release from the European Parliament: “Clear and affirmative consent to data processing, the right to be forgotten and strong fines for firms breaking the rules” are some of the new features. The hope is that by having one unified set of rules and processes in place, clarity will be increased for both firms and individuals.

The FDA Food Safety Modernization Act (FSMA) was signed into law by President Obama on Jan 4, 2011. It is intended to protect the public by allowing the FDA to take preventative, rather than reactionary approaches to food safety.

The Competition Ordinance came into full effect on December 14, 2015, after being introduced in 2010 and passed in 2012, giving businesses in Hong Kong ample time to comply with the new policies. The goal of the ordinance is to ensure that Hong Kong remains a free market by explicitly curbing anti-competitive measures, which will benefit consumers, businesses, and the economy as a whole down the line.

The European Commission announced that an agreement on an EU-US Privacy Shield has been reached to replace the Safe Harbor agreement governing the transfer of transatlantic data flows.

A new one year pilot program from the Department of Justice seeks to clarify the Foreign Corrupt Practices Act (FCPA), and help companies respond to any violations. The program is designed to promote self-reporting, cooperation, and remediation through reductions in penalties faced by firms violating the FCPA.

The European Commission defines a “novel food” as one that has not been consumed at a significant rate by those residing in the European Union (EU) prior to 1997.

A draft proposal for revisions to China’s Anti-Unfair Competition (“AUCL”) is open for public comment until March 25. The amendments seek to provide clarity, and also increase punishments for violations related to commercial bribery, intellectual property, employer liability, and anti-trust/competition practices.