Chinese regulators in the financial hub of Shanghai have summoned three companies, including Starbucks and Shake Shack, for collecting excessive personal information.

The city’s cyberspace regulator made this announcement on Wednesday, expressing concerns over the privacy practices of these companies.

Regulators demand comprehensive rectification and consumer protection

A statement issued by Shanghai’s cyberspace regulator revealed that the regulators had urged the summoned companies to take immediate action and comprehensively rectify the issue at hand.

The main focus is to protect personal information and safeguard the legitimate rights and interests of consumers. This move by the regulator indicates the growing emphasis on data privacy and consumer protection in the Chinese market.

Positive progress by Shake Shack, Starbucks actively making adjustments

The regulator further disclosed that two of the summoned companies, including Shake Shack, have already initiated initial improvements to address the concerns raised.

This signifies their commitment to rectifying the situation promptly. On the other hand, Starbucks is actively adjusting its data collection practices, indicating a willingness to comply with the regulator’s demands.

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By GlobalData

This development underscores the increasing focus on data privacy and the safeguarding of consumer rights in China’s business landscape.