REGULATORY FRAMEWORK AND LEGAL ISSUES

PART I (LAW ON SALES) – CIVIL CODE OF THE PHILIPPINES

PART II (PLEDGE AND MORTGAGE) – CIVIL CODE OF THE PHILIPPINES

PART III (LAW ON AGENCY ) – CIVIL CODE OF THE PHILPPINES

PART IV OTHER BUSINESS TRANSACTIONS (SPECIAL LAWS)

A. PHILIPPINE DEPOSIT INSURANCE CORPORATION (RA 3591; RA 10480; AND RA 10846)

B. FINANCIAL REHABILITATION AND INSOLVENCY ACT (RA 10142)
C. BANK SECRECY LAW (RA 1405)
D. NEW CENTRAL BANK ACT (RA 7653 AND RA 11211)
E. UNCLAIMED BALANCES LAW (RA 3936)
F. GENERAL BANKING LAWS OF 2000 (RA 8791) AND BAILMENTS
G. ANTI-MONEY LAUNDERING ACT (RA 9160)
H. DATA PRIVACY ACT OF 2012 (RA 10173)

DATA PRIVACY ACT OF 2012

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 INFORMATON.

DEFINITION

a. Personal Data – refers to all types of personal information;

b. Data Subject – refers to individual whose personal, sensitive personal or privileged information is
processed;

c. Personal Information Controller – Refers to the natural or juridical person, or any other body who
controls the processing of personal data, or instruct another to process personal data on its behalf.

It EXCLUDES:

1. A natural or juridical person, or any other body, who performs such functions as instructed by
another person or organization;

2. A natural person who processes personal data in connection with his or her personal, family, or
household affairs;
 There is a control if the natural or juridical person or any other body decides on what information is
collected, or the purpose or extent of its processing;

d. Personal Information Processor – refers to any natural or juridical person or any other body to whom
a personal information controller may outsource or instruct the processing of personal data pertaining to
a data subject.

e. Processing – refers to any operation or any set of operations performed upon personal data including,
but not limited to, THE COLLECTION, RECORDING, ORGANIZATION, STORAGE, UPDATING OR
MODIFICATION, RETRIEVAL, CONSULTATION, USE, CONSOLIDATION, BLOCKING, ERASURE, OR
DESTRUCTION OF DATA. Processing may be performed through automated means, manual processing, if
the personal data are contained or are intended to be contained in a filing system.

f. Data Sharing – is the disclosure or transfer to a third party of personal data under the custody of a
personal information controller or personal information processor. In case of the latter, such disclosure
or transfer must have been upon the instruction of the personal information controller concerned. The
term excludes outsourcing, or the disclosure or transfer of personal data by a personal information
controller to a personal information processor.

g. Personal data breach – refers to a breach of security leading to the accidental or unlawful destruction,
loss, alteration, unauthorized disclosure of, or access to, personal data transmitted, stored, or otherwise
processed. The types of data breaches are AVAILABILITY, INTEGRITY, AND CONFIDENTIALITY BREACHES.

CLASSIFICATION OF PERSONAL DATA

1. 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.

2. SENSITIVE PERSONAL INFORMATION refers to personal information:

a. About an individual’s RACE, ETHNIC ORIGIN, MARITAL STATUS, AGE, COLOR , AND RELIGIOUS,
PHILOSOPHICAL OR POLITICAL AFFILIATIONS;

b. About an individual’s HEATH, EDUCATION, GENETIC OR SEXUAL LIFE OF A PERSON, or any

proceeding for any offense committed or alleged to have been committed by such individual, the disposal
or such proceedings, or the sentence of any court in such proceedings;

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

d. Specifically established by an executive order or an act of Congress to be kept classified.

LAWFUL PROCEESING OF PERSONAL DATA

1. Processing of personal information is allowed, unless prohibited by law. For processing to be lawful,
any of the following conditions must be complied with:

a. The data subject must have given his or her CONSENT prior to the collection, or as soon as
practicable and reasonable;

b. The processing involves the personal information of a data subject who is a party to a
CONTRACTUAL AGREEMENT, in order to fulfill obligations under the contract or to take steps at the
request of the data subject prior to entering the said agreement;

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

d. The processing is necessary to protect vitally important interest of the data subject, including
his or her life and health;

e. The processing of personal information is necessary to respond to National Emergency or to

comply with the requirements of PUBLIC ORDER AND SAFETY, as prescribed by law;

f. The processing of personal information is necessary for the fulfillment of the constitutional or
statutory mandate of a public authority; or

g. The processing is necessary to pursue the legitimate interests of 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 freedom of the data subject, which require protection under the
Philippine Constitution.

THE PROCESSING OF SENSITIVE PERSONAL INFORMATION is prohibited, EXCEPT IN ANY OF THE

FOLLOWING CASES;

a. CONSENT is given by the data subject, or by the parties to the exchange or privileged
information, prior to the processing of the sensitive personal information or privileged information, which
shall be undertaken pursuant to a declared, specified and legitimate purpose’

b. The processing of the sensitive personal information or privileged information is PROVIDED FOR
BY EXISTING LAWS AND REGULATIONS: Provided, that said laws and regulations do not require the
consent of the data subject for the processing, and guarantee the protection of personal data.

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:

1. Processing is confined and related to the bona fide members of these organizations or
their associations;

2. The sensitive personal information are not transferred to third parties; and

3. Consent pf the data subject was obtained prior to processing;

e. The processing is necessary for the purpose of medical treatment institution, and an adequate
level of protection or personal data is ensured; or

f. The processing concerns sensitive personal information or privileged information 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
pursuant to a constitutional or statutory mandate.

RIGHTS OF THE DATA SUBJECT

1. RIGHT TO BE INFORMED;

2. RIGHT TO OBJECT;

3. RIGHT TO ACCESS;

4. RIGHT TO RECTIFICATION;

5. RIGHT TO ERASURE OR BLOCKING;

6. RIGHT TO DAMAGES;

7. RIGHT TO DATA PORTABILITY – Where his personal data is processed by electronic means and in a
structured and commonly used format, the data subject shall have the right to obtain from the personal
information controller a copy of such data in an electronic or structured format that is commonly used
and allows for further use by the data subject.

TRANSMISSIBILITY OF RIGHTS OF THE DATA SUBJECT

1. The lawful heirs and assigns of the data subject may invoke the rights of the data subject to which he
or she is an heir or an 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.
DATA PRIVACY PRINCIPLES

GENERAL DATA PRIVACY PRINCIPLES

1. Processing of personal information shall be allowed, subject to:

a. Compliance with the requirements of DPA and other laws, allowing disclosure of information
to the public; and

b. Adherence to the principles of TRANSPARENCY, LEGITIMATE PURPOSE, AND

PROPORTIONALITY

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.

TRANSPARENCY IS DEMONSTRATED THROUGH

a. Privacy Notice

b. Privacy Policy

c. 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 his or her PERSONAL, SENSITIVE
PERSONAL, OR PRIVILEGED INFORMATION. Consent shall be evidenced by written, electronic or recorded
means. It may also be given on behalf of the data subject by a lawful representation or an agent specifically
authorized by the data subject to do so.

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.

PROPORTIONALITY. The processing of information shall be adequate, relevant, suitable,

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

GENERAL PRINCIPLES IN COLLECTION, PROCESSING AND RETENTION OF PERSONAL DATA

The processing of personal data shall adhere to the following principles;

1. Collection must be for a declared, specified, and legitimate purpose;

2. Personal data shall be processed fairly and lawfully;

3. Processing should ensure data quality;

4. Personal data shall not be retained longer than necessary;

5. Any authorized further processing shall have adequate safeguards.

GENERAL PRINCIPLES OF DATA SHARING

Further processing of personal data collected from a party other than the data subject shall be allowed
under any of the following conditions;

1. When it is expressly authorized by law, provided that:

a. There are adequate safeguards for data privacy and security; and

b. Processing adheres to the principles of TRANSPARENCY, LEGITIMATE PURPOSE ABD

PROPORTIONALITY.

2. When in the private sector, the data subject consents to data sharing and conditions are complied with;

3. When the personal data is publicly available, or has the consent of the data subject for purpose of
research, provided that:

a. Adequate safeguards are in place; and

b. No decision directly affecting the data subject shall be made on the basis of data collected or
processed;

4. Data sharing between government agencies for the purpose of a public function or provision of a public
service shall be covered by a data sharing agreement.

NON-APPLICABILITY OF THE DPA

The DPA 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 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 of the independent, central monetary authority and law
enforcement and regulatory agencies of their constitutionally and statutorily mandated functions;

f) Information necessary for BANKS and other financial institutions under the jurisdiction of the
independent, central monetary authority of BSP to comply with the applicable laws; and

g) Personal information originally collected from residents of foreign jurisdiction in accordance

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

APPLICATIONS OF THE DPA IN THE SCHOOL SETTING

Teacher’s right to search a Minor’s Cellular Phone

a. The teacher may have the right to seize the cellphone as this is a violation of DepEd Rules
pursuant to the mandate to immediately stop or at the very least, closely monitor and regulate the use of
cellphones. But this does not automatically provide the teacher with the authority to search through the
contents of the cellphone. The teacher may only search through a minor student’s cellphone without his
consent in order to protect vitally important interest of the students, including his life and health or
probably to respond to national emergency. Any search through a minor student’s cellular phone ithoput
the necessary warrant or any other justification under a law or regulation allowing such act, is unlawful,
and may be construed as unauthorized processing punishable under Section 25 of DPA.
CONSENT OF DATA SUBJECT PRIOR TO RELEASE OF SCHOOL RECORDS

Given the responsibility of the school to secure personal information, its denial of a request for
information may be justified due to the lack of consent of the data subject. Although consent is not the
only condition for lawful disclosure or processing, in general, of personal information, it may be the most
appropriate criterion in certain scenarios.

DISCLOSURE OF SCHOOL RECORDS FOR INVESTIGATION

The Education Act of 1982 (BP Blg. 232) recognizes that schools have the obligation to maintain and
preserve the confidentiality of school records. Furthermore, the constitutional right against unreasonable
searches and seizures guard against the exercise of government of unbridled discretion in collecting,
obtaining and using information relevant to individual, for whatever purpose. The request for disclosure
of School records in connection with the investigation being conducted, by a law enforcement agency is
not the same as the issuance of a search warrant. Moreover, disclosure of school records may not be
warranted in the absence of any of the circumstances provided in the DPA which will serve as a lawful
basis for the processing of sensitive personal information.

ACCESS TO INFORMATION IN RELATION TO DISCIPLINARY RECORD

Information about any proceeding for any offense committed or alleged to have been committed by an
individual, the disposal of such proceedings, or the sentence of any court in such proceedings are classified
as sensitive information. Administrative cases in an educational institution are included in such
proceedings protected by the DPA.

Still, the parties involved in the administrative proceeding, specifically the complainant and respondent,
have the right to be informed of the details of the case, including personal data, as a matter of procedural
due process. This holds true whether the party to the case is a student, faculty, or school personnel.
Meanwhile, third parties to the proceeding, including witnesses, other individuals who may be affected
by the case and its outcome, and the public, are not accorded the same right.

POSTING OF THE LIST OF ADMITTED STUDENTS ON THE BULLETIN BOARD

In order to rely on legitimate interests as basis for lawful processing, the PIC must be able to satisfy its key
elements which can be broken down into a three-past test as follows;

1. PURPOSE TEST. Are you pursuing a legitimate interest?

 There is a legitimate interest in the posting of the names on the bulletin board of your school, the
main purpose of which is to simply inform the applicants that they successfully passed the examination in
the most transparent and practical way.

2. NECESSITY TEST: is the processing necessary for that purpose?

The posting is necessary for the purpose as these applicants are most probably already eagerly
waiting for the results of the examinations.

3. BALANCING TEST: Do the individual’s interests override the legitimate interest?

Presumably, when an applicant applies for admission, which involves submitting forms with his
or her personal information, and subsequently taking the examination, the applicant is aware that the
school will process the personal information particularly his or her name for purposes that are relevant to
his or her admission, such as publication of successful applicants’ names. This means that the applicant
could reasonably expect that his or her name may be posted on the bulletin board of the school if one has
successfully hurdled the examinations.

This being said, it is still recommended to obtain consent. For instance, consent may be obtained in their
application form for purpose of posting in the bulletin boards the names of those accepted.

COMMON PRACTICE OF SCHOOLS IN PROCESSING PERSONAL DATA OF STUDENTS

1. On posting of class list

Apart from the student’s name, the data set enumerated included in the class roster, i.e

Student;s school name, Grade Level, Section and Test Scores, are considered sensitive personal
information as these are related to the student’s education.

Since the DPA should be read in parallel with existing laws, rules and regulations, the pertinent
issuances of the DepEd or the CHED should also be consulted. If there is an existing issuance of DepEd
and/or CHED on this matter, the same may be relied on as a lawful basis for the posting in the bulletin
board or official social media account, provided that the issuances guarantee the protection of personal
data. If there are no existing rules and regulations on the matter issued by the relevant regulatory
agencies, the school should obtain the student’s or their legal guardians’, in case the students are minors,
consent.

The school should carefully reexamine whether such practice of posting class lists still necessary and
proportional to the purpose which the school seeks to achieve. Consider also that posting in a physical
bulletin board inside the school has a different context as posting in a school media platform or website
that is publicly accessible.
ON POSTING OF SCREENSHOTS/PHOTOS OF STUDENTS

If the screenshots of online classes where students are identifiable by their names and images, would
likewise reveal other education-related details. i.e name of school, grade level, exam scores, etc. the same
may be considered as processing of sensitive personal information. Whether the posting was done by a
teacher or the school, the same should always have a lawful basis for processing under the DPA. The
teacher and the school should have obtained the consent of the students, or parents, in case of minor
students.

ON POSTING OF THE LIST OF STUDENTS’ AWARDS, RECOGNITION OF STUDENTS’ ACHIEVEMENTS/RESULTS

DURING SCHOOL RELATED COMPETITIONS AND REPRESENTATION, AND SCHOLARSHIP GRANT
QUALIFIERS

Honors, awards, achievements and results during any school related competition and representation,
including schools and government scholarship grants, all fall under sensitive personal information since
these are information on an individual’s education, the processing of such sensitive personal information
should be based on any of the criteria provided under Section 13 of the DPA. In this scenario, consent may
be most appropriate lawful basis for processing.

ON SCHOOL RELATED PROGRAM AND ACTIVITIES

The participation or involvement by a student in school-related or sponsored activities and programs may
be shown through different ways. The evaluation on whether the pictures and videos may constitute
personal or sensitive personal information may be made on case-to-case basis, considering various factors
and circumstances, i.e, whether the photos or videos involve a large crown at a school event, etc. Names
and photographs may be considered as personal information and may be shared or disclosed pursuant to
Section 12 of the DPA. If otherwise considered as sensitive personal information. Section 13 would then
apply. In all cases, schools must have mechanisms in place whereby the students, by himself/herself or
through their parent or legal guardian, would be able to exercise his/her rights as a data subject, i. e be
able to provide consent and withdraw the same, object to the processing of personal data, request for
erasure, etc., as may be appropriate and subject to the provisions of the DPA and its implementing Rules
and Regulations.

ON POSTING STUDENT’S ACCOUNT OR BALANCE

The principle of proportionality dictates that the least privacy-intrusive means of processing should be
chosen, if available. In this case, sending of notices by the school of the amounts payable directly to the
students, or his or her parent or legal guardian, can be easily done and is more appropriate. In this
scenario, there may be no need to post such names and amounts due in the community bulletin board.

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.

AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN INFORMATION AND COMMUNICATIONS

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

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

CHAPTER I

GENERAL PROVISIONS

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

SEC. 2. Declaration of Policy. – It is the policy of the State to protect the fundamental human right of
privacy, of communication while ensuring free flow of information to promote innovation and growth.
The State recognizes the vital role of information and communications technology in nation-building and
its inherent obligation to ensure that personal information in information and communications systems
in the government and in the private sector are secured and protected.
SEC. 3. Definition of Terms. – Whenever used in this Act, the following terms shall have the respective
meanings hereafter set forth:

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

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

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

(d) Direct marketing refers to communication by whatever means of any advertising or marketing
material which is directed to particular individuals.

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

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

(g) Personal information refers to any information whether recorded in a material form or not, from
which the identity of an individual is apparent or can be reasonably and directly ascertained by the
entity holding the information, or when put together with other information would directly and
certainly identify an individual.
(h) Personal information controller refers to a person or organization who controls the collection,
holding, processing or use of personal information, including a person or organization who instructs
another person or organization to collect, hold, process, use, transfer or disclose personal information
on his or her behalf. The term excludes:

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

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

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

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

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

(l) Sensitive personal information refers to personal information:

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

(2) About an individual’s health, education, genetic or sexual life of a person, or to any proceeding for
any offense committed or alleged to have been committed by such person, the disposal of such
proceedings, or the sentence of any court in such proceedings;
(3) Issued by government agencies peculiar to an individual which includes, but not limited to, social
security numbers, previous or 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.
I. ELECTRONIC COMMERCE ACT (DIGITAL AND INFORMATION TECHNOLOGY) (RA 8792)
J. INTELLECTUAL PROPERTY LAW (RA 8293)
K. EASE ON DOING BUSINESS (RA 11032)