Republic Act No.

10173, otherwise known as the Data Privacy Act is a law that seeks to protect
all forms of information, be it private, personal, or sensitive. It is meant to cover both natural and
juridical persons involved in the processing of personal information.

As mentioned earlier, the Data Privacy Act applies to any natural or juridical persons involved in
the processing of personal information. It also covers those who, although not found or
established in the Philippines, use equipment located in the Philippines, or those who maintain an
office, branch, or agency in the Philippines.

Under Sec. 3(j) of the Data Privacy Act, “[p]rocessing 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.”

In other words, processing of personal information is any operation where personal information
is involved. Whenever your information is, among other things, collected, modified, or used for
some purpose, processing already takes place.

SCOPE AND APPLICATION, EXTRATERRITORIAL APPLICATION

The Data Privacy Act is broadly applicable to individuals and legal entities that process personal
information, with some exceptions. The law has extraterritorial application, applying not only to
businesses with offices in the Philippines, but when equipment based in the Philippines is used
for processing. The act further applies to the processing of the personal information of
Philippines citizens regardless of where they reside.

One exception in the act provides that the law does not apply to the processing of personal
information in the Philippines that was lawfully collected from residents of foreign jurisdictions
— an exception helpful for Philippines companies that offer cloud services.

The Philippines law takes the approach that “The processing of personal data shall be allowed
subject to adherence to the principles of transparency, legitimate purpose, and proportionality.”

GENERAL PRINCIPLES

Section 17. General Data Privacy Principles. The processing of personal data shall be allowed,
subject to compliance with the requirements of the Act and other laws allowing disclosure of
information to the public, and adherence to the principles of transparency, legitimate purpose,
and proportionality.
Section 18. Principles of Transparency, Legitimate Purpose and Proportionality. The processing
of personal data shall be allowed subject to adherence to the principles of transparency,
legitimate purpose, and proportionality.

a. Transparency. The data subject must be aware of the nature, purpose, and extent of the
processing of his or her personal data, including the risks and safeguards involved, the identity of
personal information controller, his or her rights as a data subject, and how these can be
exercised. Any information and communication relating to the processing of personal data
should be easy to access and understand, using clear and plain language.

b. Legitimate purpose. The processing of information shall be compatible with a declared and
specified purpose which must not be contrary to law, morals, or public policy.

c. Proportionality. The processing of information shall be adequate, relevant, suitable, necessary,

and not excessive in relation to a declared and specified purpose. Personal data shall be
processed only if the purpose of the processing could not reasonably be fulfilled by other means.

PROCESSING
Under Sec. 3(j) of the Data Privacy Act, “[p]rocessing 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.”

In other words, processing of personal information is any operation where personal information
is involved. Whenever your information is, among other things, collected, modified, or used for
some purpose, processing already takes place.

PERSONAL INFORMATION
Under Sec. 3(g) of the Data Privacy Act, “[p]ersonal 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.”

In other words, personal information is any information which can be linked to your identity,
thus making you readily identifiable.

PRIVILEGED INFORMATION
Under Sec. 3(k) of the Data Privacy Act, “[p]rivileged information refers to any and all forms of
data which under the Rules of Court and other pertinent laws constitute privileged
communication.” One such example would be any information given by a client to his lawyer.
Such information would fall under attorney-client privilege and would, therefore, be considered
privileged information.

SENSITIVE AND PRIVILEGED INFORMATION

SENSITIVE INFORMATION VIS-À-VIS PERSONAL INFORMATION
Yes. While personal information refers to information that makes you readily identifiable,
sensitive personal information, as defined in Sec. 3(l) of the Data Privacy Act, 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.
Therefore, any information that can be categorized under any of the enumerated items are
considered sensitive personal information.

Yes. The law treats both kinds of personal information differently. Personal information may be
processed, provided that the requirements of the Data Privacy Act are complied with. On the
other hand, the processing of sensitive personal information is, in general, prohibited. The Data
Privacy Act provides the specific cases where processing of sensitive personal information is
allowed.

SUBCONTRACTING
Section 43. Subcontract of Personal Data. A personal information controller may subcontract
or outsource the processing of personal data: Provided, that the personal information controller
shall use contractual or other reasonable means to ensure that proper safeguards are in place, to
ensure the confidentiality, integrity and availability of the personal data processed, prevent its
use for unauthorized purposes, and generally, comply with the requirements of the Act, these
Rules, other applicable laws for processing of personal data, and other issuances of the
Commission. 

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.

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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.

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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.

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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.

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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.
r 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.