Republic of the Philippines

Southern Luzon State University

College of Engineering
Lucban, Quezon

COMPUTER ENGINEERING DEPARTMENT

Ethics
Data Privacy Act of 2012
(R.A.10173)

Kay Ann R. Felicidario

BSCpE V-GF
 Republic of the Philippines
Congress of the Philippines
Metro Manila
Fifteenth Congress
Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, two thousand eleven.

AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN INFORMATION AND

COMMUNICATIONS SYSTEMS IN THE GOVERNMENT AND THE PRIVATE SECTOR,
CREATING FOR THIS PURPOSE A NATIONAL PRIVACY COMMISSION, AND FOR OTHER
PURPOSES

Be it enacted, by the Senate and House of Representatives of the Philippines in Congress

assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. – This Act shall be known as the “Data Privacy Act of 2012”.

SEC. 2. Declaration of Policy. – It is the policy of the State to protect the fundamental human
right of privacy, of communication while ensuring free flow of information to promote innovation
and growth. The State recognizes the vital role of information and communications technology
in nation-building and its inherent obligation to ensure that personal information in information
and communications systems in the government and in the private sector are secured and
protected.

SEC. 3. Definition of Terms. – Whenever used in this Act, the following terms shall have the
respective meanings hereafter set forth:

(a) Commission shall refer to the National Privacy Commission created by virtue of this Act.

(b) Consent of the data subject refers to any freely given, specific, informed indication of will,
whereby the data subject agrees to the collection and processing of personal information about
and/or relating to him or her. Consent shall be evidenced by written, electronic or recorded
means. It may also be given on behalf of the data subject by an agent specifically authorized by
the data subject to do so.

(c) Data subject refers to an individual whose personal information is processed.

(d) Direct marketing refers to communication by whatever means of any advertising or

marketing material which is directed to particular individuals.

(e) Filing system refers to any act of information relating to natural or juridical persons to the
extent that, although the information is not processed by equipment operating automatically in
response to instructions given for that purpose, the set is structured, either by reference to
individuals or by reference to criteria relating to individuals, in such a way that specific
information relating to a particular person is readily accessible.

(f) Information and Communications System refers to a system for generating, sending,

receiving, storing or otherwise processing electronic data messages or electronic documents
and includes the computer system or other similar device by or which data is recorded,
transmitted or stored and any procedure related to the recording, transmission or storage of
electronic data, electronic message, or electronic document.

(g) Personal information refers to any information whether recorded in a material form or not,

from which the identity of an individual is apparent or can be reasonably and directly
ascertained by the entity holding the information, or when put together with other information
would directly and certainly identify an individual.
(h) Personal information controller refers to a person or organization who controls the collection,
holding, processing or use of personal information, including a person or organization who
instructs another person or organization to collect, hold, process, use, transfer or disclose
personal information on his or her behalf. The term excludes:

(1) A person or organization who performs such functions as instructed by another person or
organization; and

(2) An individual who collects, holds, processes or uses personal information in connection with
the individual’s personal, family or household affairs.

(i) Personal information processor refers to any natural or juridical person qualified to act as

such under this Act to whom a personal information controller may outsource the processing of
personal data pertaining to a data subject.

(j) Processing refers to any operation or any set of operations performed upon personal

information including, but not limited to, the collection, recording, organization, storage, updating
or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of
data.

(k) Privileged information refers to any and all forms of data which under the Rules of Court and
other pertinent laws constitute privileged communication.

(l) Sensitive personal information refers to personal information:

(1) About an individual’s race, ethnic origin, marital status, age, color, and religious,
philosophical or political affiliations;

(2) About an individual’s health, education, genetic or sexual life of a person, or to any
proceeding for any offense committed or alleged to have been committed by such person, the
disposal of such proceedings, or the sentence of any court in such proceedings;

(3) Issued by government agencies peculiar to an individual which includes, but not limited to,
social security numbers, previous or current health records, licenses or its denials, suspension
or revocation, and tax returns; and

(4) Specifically established by an executive order or an act of Congress to be kept classified.

SEC. 4. Scope. – This Act applies to the processing of all types of personal information and to
any natural and juridical person involved in personal information processing including those
personal information controllers and processors who, although not found or established in the
Philippines, use equipment that are located in the Philippines, or those who maintain an office,
branch or agency in the Philippines subject to the immediately succeeding
paragraph: Provided, That the requirements of Section 5 are complied with.

This Act does not apply to the following:

(a) Information about any individual who is or was an officer or employee of a government
institution that relates to the position or functions of the individual, including:

(1) The fact that the individual is or was an officer or employee of the government institution;

(2) The title, business address and office telephone number of the individual;

(3) The classification, salary range and responsibilities of the position held by the individual; and

(4) The name of the individual on a document prepared by the individual in the course of
employment with the government;
(b) Information about an individual who is or was performing service under contract for a
government institution that relates to the services performed, including the terms of the contract,
and the name of the individual given in the course of the performance of those services;

(c) Information relating to any discretionary benefit of a financial nature such as the granting of a
license or permit given by the government to an individual, including the name of the individual
and the exact nature of the benefit;

(d) Personal information processed for journalistic, artistic, literary or research purposes;

(e) Information necessary in order to carry out the functions of public authority which includes
the processing of personal data for the performance by the independent, central monetary
authority and law enforcement and regulatory agencies of their constitutionally and statutorily
mandated functions. Nothing in this Act shall be construed as to have amended or repealed
Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act No.
6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act No. 9510,
otherwise known as the Credit Information System Act (CISA);

(f) Information necessary for banks and other financial institutions under the jurisdiction of the
independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with Republic
Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the Anti-Money
Laundering Act and other applicable laws; and

(g) Personal information originally collected from residents of foreign jurisdictions in accordance
with the laws of those foreign jurisdictions, including any applicable data privacy laws, which is
being processed in the Philippines.

SEC. 5. Protection Afforded to Journalists and Their Sources. – Nothing in this Act shall be
construed as to have amended or repealed the provisions of Republic Act No. 53, which affords
the publishers, editors or duly accredited reporters of any newspaper, magazine or periodical of
general circulation protection from being compelled to reveal the source of any news report or
information appearing in said publication which was related in any confidence to such publisher,
editor, or reporter.

SEC. 6. Extraterritorial Application. – This Act applies to an act done or practice engaged in
and outside of the Philippines by an entity if:

(a) The act, practice or processing relates to personal information about a Philippine citizen or a
resident;

(b) The entity has a link with the Philippines, and the entity is processing personal information in
the Philippines or even if the processing is outside the Philippines as long as it is about
Philippine citizens or residents such as, but not limited to, the following:

(1) A contract is entered in the Philippines;

(2) A juridical entity unincorporated in the Philippines but has central management and control in
the country; and

(3) An entity that has a branch, agency, office or subsidiary in the Philippines and the parent or
affiliate of the Philippine entity has access to personal information; and

(c) The entity has other links in the Philippines such as, but not limited to:

(1) The entity carries on business in the Philippines; and

(2) The personal information was collected or held by an entity in the Philippines.
 CHAPTER II
THE NATIONAL PRIVACY COMMISSION

SEC. 7. Functions of the National Privacy Commission. – To administer and implement the
provisions of this Act, and to monitor and ensure compliance of the country with international
standards set for data protection, there is hereby created an independent body to be known as
the National Privacy Commission, winch shall have the following functions:

(a) Ensure compliance of personal information controllers with the provisions of this Act;

(b) Receive complaints, institute investigations, facilitate or enable settlement of complaints

through the use of alternative dispute resolution processes, adjudicate, award indemnity on
matters affecting any personal information, prepare reports on disposition of complaints and
resolution of any investigation it initiates, and, in cases it deems appropriate, publicize any such
report: Provided, That in resolving any complaint or investigation (except where amicable
settlement is reached by the parties), the Commission shall act as a collegial body. For this
purpose, the Commission may be given access to personal information that is subject of any
complaint and to collect the information necessary to perform its functions under this Act;

(c) Issue cease and desist orders, impose a temporary or permanent ban on the processing of
personal information, upon finding that the processing will be detrimental to national security
and public interest;

(d) Compel or petition any entity, government agency or instrumentality to abide by its orders or
take action on a matter affecting data privacy;

(e) Monitor the compliance of other government agencies or instrumentalities on their security
and technical measures and recommend the necessary action in order to meet minimum
standards for protection of personal information pursuant to this Act;

(f) Coordinate with other government agencies and the private sector on efforts to formulate and
implement plans and policies to strengthen the protection of personal information in the country;

(g) Publish on a regular basis a guide to all laws relating to data protection;

(h) Publish a compilation of agency system of records and notices, including index and other
finding aids;

(i) Recommend to the Department of Justice (DOJ) the prosecution and imposition of penalties
specified in Sections 25 to 29 of this Act;

(j) Review, approve, reject or require modification of privacy codes voluntarily adhered to by
personal information controllers:Provided, That the privacy codes shall adhere to the underlying
data privacy principles embodied in this Act: Provided, further,That such privacy codes may
include private dispute resolution mechanisms for complaints against any participating personal
information controller. For this purpose, the Commission shall consult with relevant regulatory
agencies in the formulation and administration of privacy codes applying the standards set out
in this Act, with respect to the persons, entities, business activities and business sectors that
said regulatory bodies are authorized to principally regulate pursuant to the law: Provided,
finally. That the Commission may review such privacy codes and require changes thereto for
purposes of complying with this Act;

(k) Provide assistance on matters relating to privacy or data protection at the request of a
national or local agency, a private entity or any person;

(l) Comment on the implication on data privacy of proposed national or local statutes,
regulations or procedures, issue advisory opinions and interpret the provisions of this Act and
other data privacy laws;

(m) Propose legislation, amendments or modifications to Philippine laws on privacy or data

protection as may be necessary;
(n) Ensure proper and effective coordination with data privacy regulators in other countries and
private accountability agents, participate in international and regional initiatives for data privacy
protection;

(o) Negotiate and contract with other data privacy authorities of other countries for cross-border
application and implementation of respective privacy laws;

(p) Assist Philippine companies doing business abroad to respond to foreign privacy or data
protection laws and regulations; and

(q) Generally perform such acts as may be necessary to facilitate cross-border enforcement of
data privacy protection.

SEC. 8. Confidentiality. – The Commission shall ensure at all times the confidentiality of any
personal information that comes to its knowledge and possession.

SEC. 9. Organizational Structure of the Commission. – The Commission shall be attached

to the Department of Information and Communications Technology (DICT) and shall be headed
by a Privacy Commissioner, who shall also act as Chairman of the Commission. The Privacy
Commissioner shall be assisted by two (2) Deputy Privacy Commissioners, one to be
responsible for Data Processing Systems and one to be responsible for Policies and Planning.
The Privacy Commissioner and the two (2) Deputy Privacy Commissioners shall be appointed
by the President of the Philippines for a term of three (3) years, and may be reappointed for
another term of three (3) years. Vacancies in the Commission shall be filled in the same manner
in which the original appointment was made.

The Privacy Commissioner must be at least thirty-five (35) years of age and of good moral
character, unquestionable integrity and known probity, and a recognized expert in the field of
information technology and data privacy. The Privacy Commissioner shall enjoy the benefits,
privileges and emoluments equivalent to the rank of Secretary.

The Deputy Privacy Commissioners must be recognized experts in the field of information and
communications technology and data privacy. They shall enjoy the benefits, privileges and
emoluments equivalent to the rank of Undersecretary.

The Privacy Commissioner, the Deputy Commissioners, or any person acting on their behalf or
under their direction, shall not be civilly liable for acts done in good faith in the performance of
their duties. However, he or she shall be liable for willful or negligent acts done by him or her
which are contrary to law, morals, public policy and good customs even if he or she acted under
orders or instructions of superiors: Provided, That in case a lawsuit is filed against such official
on the subject of the performance of his or her duties, where such performance is lawful, he or
she shall be reimbursed by the Commission for reasonable costs of litigation.

SEC. 10. The Secretariat. – The Commission is hereby authorized to establish a Secretariat.

Majority of the members of the Secretariat must have served for at least five (5) years in any
agency of the government that is involved in the processing of personal information including,
but not limited to, the following offices: Social Security System (SSS), Government Service
Insurance System (GSIS), Land Transportation Office (LTO), Bureau of Internal Revenue (BIR),
Philippine Health Insurance Corporation (PhilHealth), Commission on Elections (COMELEC),
Department of Foreign Affairs (DFA), Department of Justice (DOJ), and Philippine Postal
Corporation (Philpost)

CHAPTER III
PROCESSING OF PERSONAL INFORMATION

SEC. 11. General Data Privacy Principles. – The processing of personal information shall be
allowed, subject to compliance with the requirements of this Act and other laws allowing
disclosure of information to the public and adherence to the principles of transparency,
legitimate purpose and proportionality.
Personal information must, be:,

(a) Collected for specified and legitimate purposes determined and declared before, or as soon
as reasonably practicable after collection, and later processed in a way compatible with such
declared, specified and legitimate purposes only;

(b) Processed fairly and lawfully;

(c) Accurate, relevant and, where necessary for purposes for which it is to be used the
processing of personal information, kept up to date; inaccurate or incomplete data must be
rectified, supplemented, destroyed or their further processing restricted;

(d) Adequate and not excessive in relation to the purposes for which they are collected and
processed;

(e) Retained only for as long as necessary for the fulfillment of the purposes for which the data
was obtained or for the establishment, exercise or defense of legal claims, or for legitimate
business purposes, or as provided by law; and

(f) Kept in a form which permits identification of data subjects for no longer than is necessary for
the purposes for which the data were collected and processed: Provided, That personal
information collected for other purposes may lie processed for historical, statistical or scientific
purposes, and in cases laid down in law may be stored for longer periods: Provided, further,That
adequate safeguards are guaranteed by said laws authorizing their processing.

The personal information controller must ensure implementation of personal information

processing principles set out herein.

SEC. 12. Criteria for Lawful Processing of Personal Information. – The processing of

personal information shall be permitted only if not otherwise prohibited by law, and when at least
one of the following conditions exists:

(a) The data subject has given his or her consent;

(b) The processing of personal information is necessary and is related to the fulfillment of a
contract with the data subject or in order to take steps at the request of the data subject prior to
entering into a contract;

(c) The processing is necessary for compliance with a legal obligation to which the personal
information controller is subject;

(d) The processing is necessary to protect vitally important interests of the data subject,
including life and health;

(e) The processing is necessary in order to respond to national emergency, to comply with the
requirements of public order and safety, or to fulfill functions of public authority which
necessarily includes the processing of personal data for the fulfillment of its mandate; or

(f) The processing is necessary for the purposes of the legitimate interests pursued by the
personal information controller or by a third party or parties to whom the data is disclosed,
except where such interests are overridden by fundamental rights and freedoms of the data
subject which require protection under the Philippine Constitution.

SEC. 13. Sensitive Personal Information and Privileged Information. – The processing of

sensitive personal information and privileged information shall be prohibited, except in the
following cases:

(a) The data subject has given his or her consent, specific to the purpose prior to the
processing, or in the case of privileged information, all parties to the exchange have given their
consent prior to processing;
(b) The processing of the same is provided for by existing laws and regulations: Provided, That
such regulatory enactments guarantee the protection of the sensitive personal information and
the privileged information: Provided, further, That the consent of the data subjects are not
required by law or regulation permitting the processing of the sensitive personal information or
the privileged information;

(c) The processing is necessary to protect the life and health of the data subject or another
person, and the data subject is not legally or physically able to express his or her consent prior
to the processing;

(d) The processing is necessary to achieve the lawful and noncommercial objectives of public
organizations and their associations: Provided, That such processing is only confined and
related to the bona fide members of these organizations or their associations: Provided,
further, That the sensitive personal information are not transferred to third parties: Provided,
finally, That consent of the data subject was obtained prior to processing;

(e) The processing is necessary for purposes of medical treatment, is carried out by a medical
practitioner or a medical treatment institution, and an adequate level of protection of personal
information is ensured; or

(f) The processing concerns such personal information as is necessary for the protection of
lawful rights and interests of natural or legal persons in court proceedings, or the establishment,
exercise or defense of legal claims, or when provided to government or public authority.

SEC. 14. Subcontract of Personal Information. – A personal information controller may

subcontract the processing of personal information: Provided, That the personal information
controller shall be responsible for ensuring that proper safeguards are in place to ensure the
confidentiality of the personal information processed, prevent its use for unauthorized purposes,
and generally, comply with the requirements of this Act and other laws for processing of
personal information. The personal information processor shall comply with all the requirements
of this Act and other applicable laws.

SEC. 15. Extension of Privileged Communication. – Personal information controllers may

invoke the principle of privileged communication over privileged information that they lawfully
control or process. Subject to existing laws and regulations, any evidence gathered on
privileged information is inadmissible.

CHAPTER IV
RIGHTS OF THE DATA SUBJECT

SEC. 16. Rights of the Data Subject. – The data subject is entitled to:

(a) Be informed whether personal information pertaining to him or her shall be, are being or
have been processed;

(b) Be furnished the information indicated hereunder before the entry of his or her personal
information into the processing system of the personal information controller, or at the next
practical opportunity:

(1) Description of the personal information to be entered into the system;

(2) Purposes for which they are being or are to be processed;

(3) Scope and method of the personal information processing;

(4) The recipients or classes of recipients to whom they are or may be disclosed;

(5) Methods utilized for automated access, if the same is allowed by the data subject, and the
extent to which such access is authorized;
(6) The identity and contact details of the personal information controller or its representative;

(7) The period for which the information will be stored; and

(8) The existence of their rights, i.e., to access, correction, as well as the right to lodge a
complaint before the Commission.

Any information supplied or declaration made to the data subject on these matters shall not be
amended without prior notification of data subject: Provided, That the notification under
subsection (b) shall not apply should the personal information be needed pursuant to
a subpoena or when the collection and processing are for obvious purposes, including when it
is necessary for the performance of or in relation to a contract or service or when necessary or
desirable in the context of an employer-employee relationship, between the collector and the
data subject, or when the information is being collected and processed as a result of legal
obligation;

(c) Reasonable access to, upon demand, the following:

(1) Contents of his or her personal information that were processed;

(2) Sources from which personal information were obtained;

(3) Names and addresses of recipients of the personal information;

(4) Manner by which such data were processed;

(5) Reasons for the disclosure of the personal information to recipients;

(6) Information on automated processes where the data will or likely to be made as the sole
basis for any decision significantly affecting or will affect the data subject;

(7) Date when his or her personal information concerning the data subject were last accessed
and modified; and

(8) The designation, or name or identity and address of the personal information controller;

(d) Dispute the inaccuracy or error in the personal information and have the personal
information controller correct it immediately and accordingly, unless the request is vexatious or
otherwise unreasonable. If the personal information have been corrected, the personal
information controller shall ensure the accessibility of both the new and the retracted information
and the simultaneous receipt of the new and the retracted information by recipients
thereof: Provided, That the third parties who have previously received such processed personal
information shall he informed of its inaccuracy and its rectification upon reasonable request of
the data subject;

(e) Suspend, withdraw or order the blocking, removal or destruction of his or her personal
information from the personal information controller’s filing system upon discovery and
substantial proof that the personal information are incomplete, outdated, false, unlawfully
obtained, used for unauthorized purposes or are no longer necessary for the purposes for which
they were collected. In this case, the personal information controller may notify third parties who
have previously received such processed personal information; and

(f) Be indemnified for any damages sustained due to such inaccurate, incomplete, outdated,
false, unlawfully obtained or unauthorized use of personal information.

SEC. 17. Transmissibility of Rights of the Data Subject. – The lawful heirs and assigns of
the data subject may invoke the rights of the data subject for, which he or she is an heir or
assignee at any time after the death of the data subject or when the data subject is
incapacitated or incapable of exercising the rights as enumerated in the immediately preceding
section.
SEC. 18. Right to Data Portability. – The data subject shall have the right, where personal
information is processed by electronic means and in a structured and commonly used format, to
obtain from the personal information controller a copy of data undergoing processing in an
electronic or structured format, which is commonly used and allows for further use by the data
subject. The Commission may specify the electronic format referred to above, as well as the
technical standards, modalities and procedures for their transfer.

SEC. 19. Non-Applicability. – The immediately preceding sections are not applicable if the
processed personal information are used only for the needs of scientific and statistical research
and, on the basis of such, no activities are carried out and no decisions are taken regarding the
data subject: Provided, That the personal information shall be held under strict confidentiality
and shall be used only for the declared purpose. Likewise, the immediately preceding sections
are not applicable to processing of personal information gathered for the purpose of
investigations in relation to any criminal, administrative or tax liabilities of a data subject.

CHAPTER V
SECURITY OF PERSONAL INFORMATION

SEC. 20. Security of Personal Information. – (a) The personal information controller must
implement reasonable and appropriate organizational, physical and technical measures
intended for the protection of personal information against any accidental or unlawful
destruction, alteration and disclosure, as well as against any other unlawful processing.

(b) The personal information controller shall implement reasonable and appropriate measures to
protect personal information against natural dangers such as accidental loss or destruction, and
human dangers such as unlawful access, fraudulent misuse, unlawful destruction, alteration and
contamination.

(c) The determination of the appropriate level of security under this section must take into
account the nature of the personal information to be protected, the risks represented by the
processing, the size of the organization and complexity of its operations, current data privacy
best practices and the cost of security implementation. Subject to guidelines as the Commission
may issue from time to time, the measures implemented must include:

(1) Safeguards to protect its computer network against accidental, unlawful or unauthorized
usage or interference with or hindering of their functioning or availability;

(2) A security policy with respect to the processing of personal information;

(3) A process for identifying and accessing reasonably foreseeable vulnerabilities in its
computer networks, and for taking preventive, corrective and mitigating action against security
incidents that can lead to a security breach; and

(4) Regular monitoring for security breaches and a process for taking preventive, corrective and
mitigating action against security incidents that can lead to a security breach.

(d) The personal information controller must further ensure that third parties processing
personal information on its behalf shall implement the security measures required by this
provision.

(e) The employees, agents or representatives of a personal information controller who are
involved in the processing of personal information shall operate and hold personal information
under strict confidentiality if the personal information are not intended for public disclosure. This
obligation shall continue even after leaving the public service, transfer to another position or
upon termination of employment or contractual relations.

(f) The personal information controller shall promptly notify the Commission and affected data
subjects when sensitive personal information or other information that may, under the
circumstances, be used to enable identity fraud are reasonably believed to have been acquired
by an unauthorized person, and the personal information controller or the Commission believes
(bat such unauthorized acquisition is likely to give rise to a real risk of serious harm to any
affected data subject. The notification shall at least describe the nature of the breach, the
sensitive personal information possibly involved, and the measures taken by the entity to
address the breach. Notification may be delayed only to the extent necessary to determine the
scope of the breach, to prevent further disclosures, or to restore reasonable integrity to the
information and communications system.

(1) In evaluating if notification is unwarranted, the Commission may take into account
compliance by the personal information controller with this section and existence of good faith in
the acquisition of personal information.

(2) The Commission may exempt a personal information controller from notification where, in its
reasonable judgment, such notification would not be in the public interest or in the interests of
the affected data subjects.

(3) The Commission may authorize postponement of notification where it may hinder the
progress of a criminal investigation related to a serious breach.

CHAPTER VI
ACCOUNTABILITY FOR TRANSFER OF PERSONAL INFORMATION

SEC. 21. Principle of Accountability. – Each personal information controller is responsible for

personal information under its control or custody, including information that have been
transferred to a third party for processing, whether domestically or internationally, subject to
cross-border arrangement and cooperation.

(a) The personal information controller is accountable for complying with the requirements of
this Act and shall use contractual or other reasonable means to provide a comparable level of
protection while the information are being processed by a third party.

(b) The personal information controller shall designate an individual or individuals who are
accountable for the organization’s compliance with this Act. The identity of the individual(s) so
designated shall be made known to any data subject upon request.

CHAPTER VII
SECURITY OF SENSITIVE PERSONAL
INFORMATION IN GOVERNMENT

SEC. 22. Responsibility of Heads of Agencies. – All sensitive personal information

maintained by the government, its agencies and instrumentalities shall be secured, as far as
practicable, with the use of the most appropriate standard recognized by the information and
communications technology industry, and as recommended by the Commission. The head of
each government agency or instrumentality shall be responsible for complying with the security
requirements mentioned herein while the Commission shall monitor the compliance and may
recommend the necessary action in order to satisfy the minimum standards.

SEC. 23. Requirements Relating to Access by Agency Personnel to Sensitive Personal

Information. – (a) On-site and Online Access – Except as may be allowed through guidelines
to be issued by the Commission, no employee of the government shall have access to sensitive
personal information on government property or through online facilities unless the employee
has received a security clearance from the head of the source agency.

(b) Off-site Access – Unless otherwise provided in guidelines to be issued by the Commission,
sensitive personal information maintained by an agency may not be transported or accessed
from a location off government property unless a request for such transportation or access is
submitted and approved by the head of the agency in accordance with the following guidelines:

(1) Deadline for Approval or Disapproval – In the case of any request submitted to the head of
an agency, such head of the agency shall approve or disapprove the request within two (2)
business days after the date of submission of the request. In case there is no action by the head
of the agency, then such request is considered disapproved;

(2) Limitation to One thousand (1,000) Records – If a request is approved, the head of the
agency shall limit the access to not more than one thousand (1,000) records at a time; and

(3) Encryption – Any technology used to store, transport or access sensitive personal
information for purposes of off-site access approved under this subsection shall be secured by
the use of the most secure encryption standard recognized by the Commission.

The requirements of this subsection shall be implemented not later than six (6) months after the
date of the enactment of this Act.

SEC. 24. Applicability to Government Contractors. – In entering into any contract that may
involve accessing or requiring sensitive personal information from one thousand (1,000) or more
individuals, an agency shall require a contractor and its employees to register their personal
information processing system with the Commission in accordance with this Act and to comply
with the other provisions of this Act including the immediately preceding section, in the same
manner as agencies and government employees comply with such requirements.

CHAPTER VIII
PENALTIES

SEC. 25. Unauthorized Processing of Personal Information and Sensitive Personal

Information. – (a) The unauthorized processing of personal information shall be penalized by
imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons who process personal information without the
consent of the data subject, or without being authorized under this Act or any existing law.

(b) The unauthorized processing of personal sensitive information shall be penalized by

imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Four million pesos
(Php4,000,000.00) shall be imposed on persons who process personal information without the
consent of the data subject, or without being authorized under this Act or any existing law.

SEC. 26. Accessing Personal Information and Sensitive Personal Information Due to

Negligence. – (a) Accessing personal information due to negligence shall be penalized by
imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons who, due to negligence, provided access to
personal information without being authorized under this Act or any existing law.

(b) Accessing sensitive personal information due to negligence shall be penalized by

imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Four million pesos
(Php4,000,000.00) shall be imposed on persons who, due to negligence, provided access to
personal information without being authorized under this Act or any existing law.

SEC. 27. Improper Disposal of Personal Information and Sensitive Personal Information.

– (a) The improper disposal of personal information shall be penalized by imprisonment ranging
from six (6) months to two (2) years and a fine of not less than One hundred thousand pesos
(Php100,000.00) but not more than Five hundred thousand pesos (Php500,000.00) shall be
imposed on persons who knowingly or negligently dispose, discard or abandon the personal
information of an individual in an area accessible to the public or has otherwise placed the
personal information of an individual in its container for trash collection.

(b) The improper disposal of sensitive personal information shall be penalized by imprisonment
ranging from one (1) year to three (3) years and a fine of not less than One hundred thousand
pesos (Php100,000.00) but not more than One million pesos (Php1,000,000.00) shall be
imposed on persons who knowingly or negligently dispose, discard or abandon the personal
information of an individual in an area accessible to the public or has otherwise placed the
personal information of an individual in its container for trash collection.

SEC. 28. Processing of Personal Information and Sensitive Personal Information for

Unauthorized Purposes. – The processing of personal information for unauthorized purposes
shall be penalized by imprisonment ranging from one (1) year and six (6) months to five (5)
years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more
than One million pesos (Php1,000,000.00) shall be imposed on persons processing personal
information for purposes not authorized by the data subject, or otherwise authorized under this
Act or under existing laws.

The processing of sensitive personal information for unauthorized purposes shall be penalized
by imprisonment ranging from two (2) years to seven (7) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons processing sensitive personal information for
purposes not authorized by the data subject, or otherwise authorized under this Act or under
existing laws.

SEC. 29. Unauthorized Access or Intentional Breach. – The penalty of imprisonment ranging

from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos
(Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on
persons who knowingly and unlawfully, or violating data confidentiality and security data
systems, breaks in any way into any system where personal and sensitive personal information
is stored.

SEC. 30. Concealment of Security Breaches Involving Sensitive Personal Information.

– The penalty of imprisonment of one (1) year and six (6) months to five (5) years and a fine of
not less than Five hundred thousand pesos (Php500,000.00) but not more than One million
pesos (Php1,000,000.00) shall be imposed on persons who, after having knowledge of a
security breach and of the obligation to notify the Commission pursuant to Section 20(f),
intentionally or by omission conceals the fact of such security breach.

SEC. 31. Malicious Disclosure. – Any personal information controller or personal information

processor or any of its officials, employees or agents, who, with malice or in bad faith, discloses
unwarranted or false information relative to any personal information or personal sensitive
information obtained by him or her, shall be subject to imprisonment ranging from one (1) year
and six (6) months to five (5) years and a fine of not less than Five hundred thousand pesos
(Php500,000.00) but not more than One million pesos (Php1,000,000.00).

SEC. 32. Unauthorized Disclosure. – (a) Any personal information controller or personal

information processor or any of its officials, employees or agents, who discloses to a third party
personal information not covered by the immediately preceding section without the consent of
the data subject, shall he subject to imprisonment ranging from one (1) year to three (3) years
and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than
One million pesos (Php1,000,000.00).

(b) Any personal information controller or personal information processor or any of its officials,
employees or agents, who discloses to a third party sensitive personal information not covered
by the immediately preceding section without the consent of the data subject, shall be subject to
imprisonment ranging from three (3) years to five (5) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00).

SEC. 33. Combination or Series of Acts. – Any combination or series of acts as defined in

Sections 25 to 32 shall make the person subject to imprisonment ranging from three (3) years to
six (6) years and a fine of not less than One million pesos (Php1,000,000.00) but not more than
Five million pesos (Php5,000,000.00).

SEC. 34. Extent of Liability. – If the offender is a corporation, partnership or any juridical

person, the penalty shall be imposed upon the responsible officers, as the case may be, who
participated in, or by their gross negligence, allowed the commission of the crime. If the offender
is a juridical person, the court may suspend or revoke any of its rights under this Act. If the
offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported
without further proceedings after serving the penalties prescribed. If the offender is a public
official or employee and lie or she is found guilty of acts penalized under Sections 27 and 28 of
this Act, he or she shall, in addition to the penalties prescribed herein, suffer perpetual or
temporary absolute disqualification from office, as the case may be.

SEC. 35. Large-Scale. – The maximum penalty in the scale of penalties respectively provided
for the preceding offenses shall be imposed when the personal information of at least one
hundred (100) persons is harmed, affected or involved as the result of the above mentioned
actions.

SEC. 36. Offense Committed by Public Officer. – When the offender or the person
responsible for the offense is a public officer as defined in the Administrative Code of the
Philippines in the exercise of his or her duties, an accessory penalty consisting in the
disqualification to occupy public office for a term double the term of criminal penalty imposed
shall he applied.

SEC. 37. Restitution. – Restitution for any aggrieved party shall be governed by the provisions
of the New Civil Code.

CHAPTER IX
MISCELLANEOUS PROVISIONS

SEC. 38. Interpretation. – Any doubt in the interpretation of any provision of this Act shall be
liberally interpreted in a manner mindful of the rights and interests of the individual about whom
personal information is processed.

SEC. 39. Implementing Rules and Regulations (IRR). – Within ninety (90) days from the
effectivity of this Act, the Commission shall promulgate the rules and regulations to effectively
implement the provisions of this Act.

SEC. 40. Reports and Information. – The Commission shall annually report to the President
and Congress on its activities in carrying out the provisions of this Act. The Commission shall
undertake whatever efforts it may determine to be necessary or appropriate to inform and
educate the public of data privacy, data protection and fair information rights and
responsibilities.

SEC. 41. Appropriations Clause. – The Commission shall be provided with an initial

appropriation of Twenty million pesos (Php20,000,000.00) to be drawn from the national
government. Appropriations for the succeeding years shall be included in the General
Appropriations Act. It shall likewise receive Ten million pesos (Php10,000,000.00) per year for
five (5) years upon implementation of this Act drawn from the national government.

SEC. 42. Transitory Provision. – Existing industries, businesses and offices affected by the
implementation of this Act shall be given one (1) year transitory period from the effectivity of the
IRR or such other period as may be determined by the Commission, to comply with the
requirements of this Act.

In case that the DICT has not yet been created by the time the law takes full force and effect,
the National Privacy Commission shall be attached to the Office of the President.

SEC. 43. Separability Clause. – If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

SEC. 44. Repealing Clause. – The provision of Section 7 of Republic Act No. 9372, otherwise
known as the “Human Security Act of 2007”, is hereby amended. Except as otherwise expressly
provided in this Act, all other laws, decrees, executive orders, proclamations and administrative
regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SEC. 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation.

(Sgd.) BENIGNO S. AQUINO III Approved: AUG 15 2012

President of the Philippine