The Achilles' Heel: the Neglected Bankruptcy-related Terms of Privacy Policies in China

Abstract

Against the backdrop of a deteriorating global economy and the pervasive collection of vast amounts of personal health data by mobile applications, the privacy commitments outlined in app privacy policies have garnered significant scrutiny. However, the specific issue of data protection during corporate bankruptcy—particularly concerning bankruptcy-related terms within health app privacy policies—has received scant scholarly attention and remains largely overlooked by the public. This study investigates the unique vulnerabilities of personal health data within bankruptcy proceedings, where existing safeguards are critically inadequate, necessitating urgent regulatory focus. Drawing upon an analysis of privacy policies from 31 top-downloaded health apps on China's Huawei App Gallery and iOS App Store, our research reveals substantial deficiencies in both current privacy policy practices and the supporting judicial mechanisms. Consequently, we propose targeted recommendations for improvement: establishing specific guiding principles for bankruptcy data handling, mandating the integration of robust bankruptcy clauses within privacy policies, and advancing the judicial framework to effectively oversee data protection in insolvency scenarios.