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Philippines: National Privacy Commission to issue show cause orders to businesses that do not comply with the registration requirements

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In brief

The National Privacy Commission (NPC) issued a press release on 5 June 2024 to “sternly” warn businesses processing personal information that it will issue show cause orders in the case of non-compliance with the Data Privacy Act of 2012 (DPA) and relevant NPC issuances, particularly NPC Circular No. 2022-04 (“Circular“), which outlines the registration framework for data processing systems (DPS) and data protection officers (DPO).

In more detail

Registration of data processing systems and data protection officers

The Circular mandatorily requires personal information controllers and personal information processors operating in the country to register their respective DPS and DPO if they meet any of the following criteria:

  • Employs at least 250 employees
  • Processes sensitive personal information of at least 1,000 individuals
  • Processes personal information that will likely pose a risk to the rights and freedom of data subjects

Other businesses that do not meet any of the above criteria should still submit a declaration and undertaking for exemption.

For more details on the Circular, please refer to our client alert found here.

Compliance checks

It was also reported that an on-the-spot privacy sweep was conducted at a certain mall establishment on 15 May 2024. As a result, 65 mall tenants were found to be unregistered with the NPC.

The NPC undertakes to continue to issue mission orders for the conduct of compliance checks on businesses throughout the Philippines, to ensure compliance with registration requirements under the Circular.

Show cause orders and administrative fines

Finally, the NPC warned that it will relentlessly enforce the DPA by issuing show cause orders to unregistered businesses.

Businesses that fail to comply with the registration requirements under the Circular despite the notice may be subjected to administrative fines, as provided under NPC Circular No. 2022-01 (Guidelines on Administrative Fines).

Recommended actions

Clients that are covered by the mandatory registration requirement are advised to register their DPS and DPO using the NPC Registration System portal. Proof of such registration, i.e., the seal of registration and QR code, must be obtained as soon as possible. On the other hand, clients that do not meet the registration threshold are advised to submit a sworn declaration and/or undertaking for exemption to the NPC.

The full NPC press release may be accessed here.

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Author

Divina Ilas-Panganiban, CIPM is a partner and the head of Quisumbing Torres’ Intellectual Property, Data and Technology Practice Group and co-heads the Technology, Media & Telecommunications (TMT) Industry Group. She participates in initiatives of Baker & McKenzie International of which Quisumbing Torres is a member firm. She is a member of Baker & McKenzie International's Asia Pacific TMT, and the Asia Pacific Intellectual Property Steering Committees.
Divina is a Certified Information Privacy Manager by the International Association of Privacy Professionals (IAPP). She currently serves as the Vice-President and Director of the Philippine Chapter of the Licensing Executives Society International, the Regional Vice-chair of the LESI's Education Committee, the Co-chairperson of the Committee on Intellectual Property Rights of The American Chamber of Commerce of the Philippines, and the Chairperson of the IAPP KnowledgeNet Chapter for the Philippines.
Divina was recently appointed to be a member of the Advisory Council for Intellectual Property (ACIP) of the Intellectual Property Office of the Philippines (IPOPHL). The ACIP is an advisory board composed of a select group of people from different sector to which IP is of great value. She was recently recognized in the Hall of Fame for Best External Lecturers by the IP Academy of the IPOPHL.
Divina just finished her stint as the chair the Unreal Campaign of the International Trademarks Association (INTA) for East Asia and the Pacific and continues to organize anti-counterfeiting activities in schools and universities around the country, educating the youth about the importance of intellectual property protection.
Divina is a multi-awarded lawyer with a stellar track record in the IP, data and technology fields. She has garnered numerous awards and accolades, including the Woman Lawyer of the Year by the ALB Philippine Law Awards 2023. She has been cited as leading lawyer for intellectual Property and TMT by The Legal 500 Asia Pacific, Chambers Asia Pacific, Managing IP, World Trademark, Asialaw and IAM Patent 1000, among others. Known for her exceptional legal expertise and unwavering commitment to her clients, Divina has established herself as a leader in her profession.

Author

Frederick August Jose, CIPP/E is a senior associate in Quisumbing Torres’ Intellectual Property, Data and Technology Practice Group and Technology, Media & Telecommunications. He has 10 years of experience in a wide range of IP and IT corporate and litigation matters.

Author

Jonathan Peter A. Gregorio is an associate with the Intellectual Property, Data and Technology Practice at Quisumbing Torres, a member firm of Baker & McKenzie International. He obtained his Juris Doctor degree from the Ateneo Professional Schools - School of Law in 2021 and was admitted to the Philippine bar in 2022.

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