August 15, 2012

REPUBLIC ACT NO. 10173

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. Â Short Title. — This Act shall be known as the "Data
Privacy Act of 2012".
SECTION 2. Â 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. TSCIEa

SECTION 3. Â Definition of Terms . — Whenever used in this Act, the

following terms shall have the respective meanings hereafter set forth:

(a) Â Commission shall refer to the National Privacy Commission

created by virtue of this Act.

(b) Â 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) Â Data subject refers to an individual whose personal

information is processed.

(d) Â Direct marketing refers to communication by whatever

means of any advertising or marketing material which is
directed to particular individuals.

(e) Â Filing system refers to any set 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) Â 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) Â 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) Â 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: aSIHcT

(1) Â A person or organization who performs such

functions as instructed by another person or
organization; and

(2) Â An individual who collects, holds, processes or uses

personal information in connection with the individual's
personal, family or household affairs.

(i) Â 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) Â 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) Â Privileged information refers to any and all forms of data

which under the Rules of Court and other pertinent laws
constitute privileged communication.

(l) Â Sensitive personal information refers to personal

 information:

(1) Â About an individual's race, ethnic origin, marital

status, age, color, and religious, philosophical or
political affiliations;

(2) Â 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) Â 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) Â Specifically established by an executive order or an

act of Congress to be kept classified.

SECTION 4. Â 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) Â 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) Â The fact that the individual is or was an officer or

employee of the government institution;

(2) Â The title, business address and office telephone

number of the individual;

(3) Â The classification, salary range and responsibilities of

the position held by the individual; and

(4) Â The name of the individual on a document prepared

by the individual in the course of employment with the
government.

(b) Â 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) Â 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) Â Personal information processed for journalistic, artistic,

literary or research purposes;

(e) Â 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) Â 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) Â 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. cACEHI

SECTION 5. Â 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. Â Extraterritorial Application. — This Act applies to an
act done or practice engaged in and outside of the Philippines by an entity if:

(a) Â The act, practice or processing relates to personal

information about a Philippine citizen or a resident;

(b) Â 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) Â A contract is entered in the Philippines;

(2) Â A juridical entity unincorporated in the Philippines

but has central management and control in the country;
and

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

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

(2) Â The personal information was collected or held by an

entity in the Philippines.

CHAPTER II
The National Privacy Commission
SECTION 7. Â 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, which shall have the following functions:

(a) Â Ensure compliance of personal information controllers with

the provisions of this Act;

(b) Â 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) Â 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) Â Compel or petition any entity, government agency or

instrumentality to abide by its orders or take action on a
matter affecting data privacy;

(e) Â 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) Â 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) Â Publish on a regular basis a guide to all laws relating to

data protection;

(h) Â Publish a compilation of agency system of records and

notices, including index and other finding aids;

(i) Â Recommend to the Department of Justice (DOJ) the

prosecution and imposition of penalties specified in Sections
25 to 29 of this Act;

(j) Â 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) Â 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) Â 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) Â Propose legislation, amendments or modifications to

Philippine laws on privacy or data protection as may be
necessary;

(n) Â 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) Â Negotiate and contract with other data privacy authorities

of other countries for cross-border application and
implementation of respective privacy laws;

(p) Â Assist Philippine companies doing business abroad to

respond to foreign privacy or data protection laws and
regulations; and

(q) Â Generally perform such acts as may be necessary to

facilitate cross-border enforcement of data privacy
protection.

SECTION 8. Â Confidentiality. — The Commission shall ensure at all

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

SECTION 9. Â 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. Â 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 (PhlPost).
CHAPTER III
Processing of Personal Information
SECTION 11. Â 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) Â 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) Â Processed fairly and lawfully;

(c) Â 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) Â Adequate and not excessive in relation to the purposes for

which they are collected and processed;

(e) Â 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) Â 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 be 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. Â 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) Â The data subject has given his or her consent;

(b) Â 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) Â The processing is necessary for compliance with a legal

obligation to which the personal information controller is
subject;

(d) Â The processing is necessary to protect vitally important

interests of the data subject, including life and health;

(e) Â 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) Â 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. TECIaH

SECTION 13. Â Sensitive Personal Information and Privileged

Information. — The processing of sensitive personal information and
privileged information shall be prohibited, except in the following cases:

(a) Â 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) Â 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) Â 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) Â 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) Â 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) Â 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. Â 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. Â 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. Â Rights of the Data Subject. — The data subject is
entitled to:

(a) Â Be informed whether personal information pertaining to

him or her shall be, are being or have been processed;

(b) Â 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) Â Description of the personal information to be entered

into the system;

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

processed;

(3) Â Scope and method of the personal information

processing;

(4) Â The recipients or classes of recipients to whom they

are or may be disclosed;

(5) Â Methods utilized for automated access, if the same is

allowed by the data subject, and the extent to which
such access is authorized;

(6) Â The identity and contact details of the personal

information controller or its representative;

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

and

(8) Â The existence of their rights, i.e ., to access,

correction, as well as the right to lodge a complaint
before the Commission. cCTaSH

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) Â Reasonable access to, upon demand, the following:

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

processed;

(2) Â Sources from which personal information were

obtained;

(3) Â Names and addresses of recipients of the personal

information;

(4) Â Manner by which such data were processed;

(5) Â Reasons for the disclosure of the personal

information to recipients;

(6) Â 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) Â Date when his or her personal information

concerning the data subject were last accessed and
modified; and

(8) Â The designation, or name or identity and address of

the personal information controller.

(d) Â 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 be informed of its
inaccuracy and its rectification upon reasonable request of
the data subject;

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

SECTION 17. Â 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. Â 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. Â 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. Â 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) Â 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. SADECI

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

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

information;

(3) Â 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) Â 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) Â 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) Â 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) Â 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 that 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) Â 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) Â 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) Â 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. Â 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) Â 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) Â 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. Â 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. Â 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) Â 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) Â 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) Â 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. Â 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. Â 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.AaITCH

(b) Â 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. Â 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) Â 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. Â 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) Â 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. Â 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. Â 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. Â 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. Â 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. Â 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 be 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) Â 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. Â 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). SCaTAc

SECTION 34. Â 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 he 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. Â 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 abovementioned actions.
SECTION 36. Â 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. Â Restitution. — Restitution for any aggrieved party
shall be governed by the provisions of the New Civil Code.
CHAPTER IX
Miscellaneous Provisions
SECTION 38. Â 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. Â 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. Â 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. Â 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. Â 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. Â 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. Â 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. Â Effectivity Clause. — This Act shall take effect fifteen
(15) days after its publication in at least two (2) national newspapers of
general circulation.
Approved: August 15, 2012.
Published in The Philippine Star on August 24, 2012.