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(For an overview, read the salient features of Data Privacy Act of 2012.)

Republic of the Philippines

Congress of the Philippines
Metro Manila
Fifteenth Congress
Second Regular Session

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

[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

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

Congress assembled:

CHAPTER I
GENERAL PROVISIONS

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

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

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

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

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

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

marketing material which is directed to particular individuals.

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

(f) Information and Communications System refers to a system for generating, sending,
receiving, storing or otherwise processing electronic data messages or electronic
documents and includes the computer system or other similar device by or which data
is recorded, transmitted or stored and any procedure related to the recording,
transmission or storage of electronic data, electronic message, or electronic document.

(g) Personal information refers to any information whether recorded in a material form
or not, from which the identity of an individual is apparent or can be reasonably and
directly ascertained by the entity holding the information, or when put together with
other information would directly and certainly identify an individual.

(h) Personal information controller refers to a person or organization who controls the
collection, holding, processing or use of personal information, including a person or
organization who instructs another person or organization to collect, hold, process, use,
transfer or disclose personal information on his or her behalf. The term excludes:

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

person or organization; and

(2) An individual who collects, holds, processes or uses personal information in

connection with the individual’s personal, family or household affairs.

(i) Personal information processor refers to any natural or juridical person qualified to
act as such under this Act to whom a personal information controller may outsource the
processing of personal data pertaining to a data subject.

(j) Processing refers to any operation or any set of operations performed upon personal
information including, but not limited to, the collection, recording, organization,
storage, updating or modification, retrieval, consultation, use, consolidation, blocking,
erasure or destruction of data.

(k) Privileged information refers to any and all forms of data which under the Rides 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 cm-rent health records, licenses or its
denials, suspension or revocation, and tax returns; and

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

classified.

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

This Act does not apply to the following:

(a) Information about any individual who is or was an officer or employee of a

government institution that relates to the position or functions of the individual,
including:

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

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

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

(4) The name of the individual on a document prepared by the individual in the course
of employment with the government;

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

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

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

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

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

(g) Personal information originally collected from residents of foreign jurisdictions in

accordance with the laws of those foreign jurisdictions, including any applicable data
privacy laws, which is being processed in the Philippines.

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

SEC. 6. Extraterritorial Application. – This Act applies to an act done or practice

engaged in and outside of the Philippines by an entity if:

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

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

(1) A contract is entered in the Philippines;

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

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

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

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

(2) The personal information was collected or held by an entity in the Philippines.

CHAPTER II
THE NATIONAL PRIVACY COMMISSION

SEC. 7. Functions of the National Privacy Commission. – To administer and implement

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

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

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

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

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

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

(e) Monitor the compliance of other government agencies or instrumentalities on their

security and technical measures and recommend the necessary action in order to meet
minimum standards for protection of personal information pursuant to this Act;

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

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

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

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

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

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

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

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

data protection as may be necessary;

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

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

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

(q) Generally perform such acts as may be necessary to facilitate cross-border

enforcement of data privacy protection.

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

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

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

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

The Deputy Privacy Commissioners must be recognized experts in the field of

information and communications technology and data privacy. They shall enjoy the
benefits, privileges and emoluments equivalent to the rank of Undersecretary.

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

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

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

CHAPTER III
PROCESSING OF PERSONAL INFORMATION

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

Personal information must, be:

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

(b) Processed fairly and lawfully;

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

(d) Adequate and not excessive in relation to the purposes for which they are collected
and processed;
(e) Retained only for as long as necessary for the fulfillment of the purposes for which
the data was obtained or for the establishment, exercise or defense of legal claims, or
for legitimate business purposes, or as provided by law; and

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

The personal information controller must ensure implementation of personal

information processing principles set out herein.

SEC. 12. Criteria for Lawful Processing of Personal Information. – The processing of
personal information shall be permitted only if not otherwise prohibited by law, and
when at least one of the following conditions exists:

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

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

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

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

(e) The processing is necessary in order to respond to national emergency, to comply

with the requirements of public order and safety, or to fulfill functions of public
authority which necessarily includes the processing of personal data for the fulfillment
of its mandate; or

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

SEC. 13. Sensitive Personal Information and Privileged Information. – The processing
of sensitive personal information and privileged information shall be prohibited, except
in the following cases:

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

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

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

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

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

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

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

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

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

CHAPTER IV
RIGHTS OF THE DATA SUBJECT

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

(a) Be informed whether personal information pertaining to him or her shall be, are
being or have been processed;
(b) Be furnished the information indicated hereunder before the entry of his or her
personal information into the processing system of the personal information controller,
or at the next practical opportunity:

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

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

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

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

(5) Methods utilized for automated access, if the same is allowed by the data subject,
and the extent to which such access is authorized;

(6) The identity and contact details of the personal information controller or its
representative;

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

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

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

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

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

(2) Sources from which personal information were obtained;

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

(4) Manner by which such data were processed;

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

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

(7) Date when his or her personal information concerning the data subject were last
accessed and modified; and
(8) The designation, or name or identity and address of the personal information
controller;

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

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

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

SEC. 17. Transmissibility of Rights of the Data Subject. – The lawful heirs and assigns
of the data subject may invoke the rights of the data subject for, which he or she is an
heir or assignee at any time after the death of the data subject or when the data subject
is incapacitated or incapable of exercising the rights as enumerated in the immediately
preceding section.

SEC. 18. Right to Data Portability. – The data subject shall have the right, where
personal information is processed by electronic means and in a structured and
commonly used format, to obtain from the personal information controller a copy of
data undergoing processing in an electronic or structured format, which is commonly
used and allows for further use by the data subject. The Commission may specify the
electronic format referred to above, as well as the technical standards, modalities and
procedures for their transfer.

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

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

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

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

(1) Safeguards to protect its computer network against accidental, unlawful or

unauthorized usage or interference with or hindering of their functioning or
availability;

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

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

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

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

(e) The employees, agents or representatives of a personal information controller who

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

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

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

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

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

CHAPTER VI
ACCOUNTABILITY FOR TRANSFER OF PERSONAL INFORMATION

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

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

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

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

CHAPTER VII
SECURITY OF SENSITIVE PERSONAL
INFORMATION IN GOVERNMENT

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

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

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

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

(b) Off-site Access – Unless otherwise provided in guidelines to be issued by the

Commission, sensitive personal information maintained by an agency may not be
transported or accessed from a location off government property unless a request for
such transportation or access is submitted and approved by the head of the agency in
accordance with the following guidelines:

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

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

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

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

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

CHAPTER VIII
PENALTIES

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

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

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

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

SEC. 26. Accessing Personal Information and Sensitive Personal Information Due to
Negligence. – (a) Accessing personal information due to negligence shall be penalized
by imprisonment ranging from one (1) year to three (3) years and a fine of not less than
Five hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons who, due to negligence, provided
access to personal information without being authorized under this Act or any existing
law.

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

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

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

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

b) The improper disposal of sensitive personal information shall be penalized by

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

SEC. 28. Processing of Personal Information and Sensitive Personal Information for
Unauthorized Purposes. – The processing of personal information for unauthorized
purposes shall be penalized by imprisonment ranging from one (1) year and six (6)
months to five (5) years and a fine of not less than Five hundred thousand pesos
(Php500,000.00) but not more than One million pesos (Php1,000,000.00) shall be
imposed on persons processing personal information for purposes not authorized by the
data subject, or otherwise authorized under this Act or under existing laws.

The processing of sensitive personal information for unauthorized purposes shall be

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

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

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

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

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

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

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

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

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

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

SEC. 33. Combination or Series of Acts. – Any combination or series of acts as defined
in Sections 25 to 32 shall make the person subject to imprisonment ranging from three
(3) years to six (6) years and a fine of not less than One million pesos
(Php1,000,000.00) but not more than Five million pesos (Php5,000,000.00).

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

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

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

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

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

CHAPTER IX
MISCELLANEOUS PROVISIONS

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

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

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

SEC. 41. Appropriations Clause. – The Commission shall be provided with an initial
appropriation of Twenty million pesos (Php20,000,000.00) to be drawn from the
national government. Appropriations for the succeeding years shall be included in the
General Appropriations Act. It shall likewise receive Ten million pesos
(Php10,000,000.00) per year for five (5) years upon implementation of this Act drawn
from the national government.

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

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

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

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

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

Approved,

(Sgd.) FELICIANO BELMONTE JR. (Sgd.) JUAN PONCE ENRILE

Speaker of the House President of the Senate
of Representatives

This Act which is a consolidation of Senate Bill No. 2965 and House Bill No. 4115 was
finally passed by the Senate and the House of Representatives on June 6, 2012.

(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Secretary General Secretary of the Senate
House of Representatives

Approved: AUG 15 2012

(Sgd.) BENIGNO S. AQUINO III

President of the Philippines

Janette Toral is an e-commerce

advocate in the Philippines. She is
the site owner of
DigitalFilipino.com.
Janette Toral – who has written 220 posts on DigitalFilipino: E-Commerce in the
Philippines.

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