Social Responsibility with Business Ethics

DATA PRIVACY LAW

Republic Act No. 10173 “Data Privacy Act of 2012”

-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.

Chapter I. General Provisions

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

Section 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.

Section 3: Definition of terms:

(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.

Section 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.

Section 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.

Section 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

Section 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.

Section 8. Confidentiality. – The Commission shall ensure at all times the

confidentiality of any personal information that comes to its knowledge and
possession.

Section 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.
Section 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

Section 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.

Section 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.
Section 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.

Section 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.

Section 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

Section 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.

Section 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.

Section 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.

Section 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

Section 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

Section 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

Section 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.

Section 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.

Section 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

Section 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.

Section 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.

Section 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.

Section 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.

Section 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.

Section 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.

Section 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).

Section 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).

Section 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).

Section 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.

Section 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.

Section 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 be applied.

Section 37. Restitution. – Restitution for any aggrieved party shall be

governed by the provisions of the New Civil Code.

Chapter IX. Miscellaneous Provisions

Section 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.

Section 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.

Section 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.
Section 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.

Section 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.

Section 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.

Section 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.

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