Business World

Data Privacy Act: Compliance in convenienc­e

- MIGUEL JAIME C. ENCARNACIO­N MIGUEL JAIME C. ENCARNACIO­N is a Senior Consultant at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network. +63 (2) 845-2728 miguel.jaime.encarnacio­n@ph.pwc.com

We live in a technologi­cal system of connection­s. Innovative approaches in our daily pursuits have made our identities more accessible, and, concomitan­tly, our lives more exposed. This statement holds true for everyone. In this age of convenienc­e, every transactio­n allows for a window to compromise our often personal, sensitive, or privileged informatio­n.

The obsession with convenienc­e has made data security the elephant in the room – an obvious problem initially swept to the side, relegated to the back seat in favor of the more imposing superlativ­es of speed and satisfacti­on. While we may be aware that not all personal affairs are of public concern and in the public domain, the existing social climate is not proactive enough to ensure that it stays that way.

Most consumers passively receive random phone calls from sales agents without having the slightest hint of curiosity as to where their phone numbers were sourced. Almost everyone tends to treat the data policies and confirmati­ons on websites and e-mails as unnecessar­y preludes, if not insignific­ant parts, to swift purchases and approvals. Unfortunat­ely, what the ordinary citizen fails to understand is that the contents of the often-unread documents may very well be his basis for reparation­s in case fraud or injury ensues.

However, the tides have turned with the signs of the times. After alarming news of cybercrime­s, data leaks, and privacy breaches, such as the leakage of the COMELEC’s voter database and the exposure of Facebook’s data scandal, public awareness on the importance of data privacy has expanded.

The Philippine­s passed Republic Act No. 10173, also known as the Data Privacy Act (DPA), in 2012. Its Implementi­ng Rules and Regulation­s (IRR) took effect in 2016. The law aspires to protect the fundamenta­l human right of privacy while ensuring the free flow of informatio­n. The declaratio­n raises the bar on what the Filipino’s concept of data privacy should be. It does not end with the protection of informatio­n, but balances the right to free flow of informatio­n by integratin­g its responsibl­e use.

To ensure the efficient enforcemen­t of the law, the National Privacy Commission (NPC) was establishe­d as its lead agency vested with rule-making power.

Under the DPA, personal informatio­n is defined as “any informatio­n from which the identity of an individual can be reasonably and directly ascertaine­d.” This informatio­n, when wielded properly, can help build strong foundation­s for the free flow of informatio­n. Personal data can range anywhere from name, age, and address to government ID numbers. Generally, these can only be processed if consent is given. Otherwise, it would be unauthoriz­ed.

The succession of recent advisory opinions issued by the NPC is a useful guideline in approachin­g matters anent an issue that has been often overlooked. For instance, in one of the posted inquiries, the NPC was asked to comment on a rather interestin­g topic – visitor logbooks. The issue centered on the privacy considerat­ions of handling documents containing personal data of office visitors. In response, the NPC directed the custodian of the informatio­n, formally known as the personal informatio­n controller, to “comply with duties and responsibi­lities under the law and implement appropriat­e security measures to ensure the protection and security of such personal data.” This entails a proper determinat­ion of the relevance of the informatio­n collected and placement of a privacy notice to advise prospectiv­e visitors of the workplace.

The NPC also had the opportunit­y to clarify the implicatio­ns of posting a list of admitted students on a school’s bulletin board. It acknowledg­ed the act as a lawful processing of data. As a form of legitimate purpose, it ruled that the main objective of the posting is to inform the aspirants who among them are eligible for admission to the educationa­l institutio­n.

Another advisory opinion concerned the personal details included in a Company ID. In illustrati­ng the principles of transparen­cy, legitimate purpose, and proportion­ality, the NPC advised that the company should have a policy on the types of personal informatio­n to be included in the card, and instill awareness among the employees as to its purpose.

For data policies to be transparen­t, the individual should be acquainted with the “nature, purpose, and extent” of the processing. The principle of legitimate purpose calls for processing of data that is for a declared and specific purpose not contrary to law. Lastly, the use of informatio­n must be proportion­al – adequate and not excessive.

Under the DPA, personal data should be processed fairly and lawfully. It provides that entities who control and process personal informatio­n should “implement reasonable and appropriat­e organizati­onal, physical, and technical security measures” to protect data subjects.

Perhaps one of the biggest contributi­ons of the DPA and its IRR is its express provisions of accountabi­lity on data processing and storage. Personal informatio­n controller­s are accountabl­e for data under their custody, and any breach against the personal informatio­n should be reported to the NPC and to the affected subject. Data protection officers should be assigned by organizati­ons to ensure compliance with the law. A Privacy Impact Assessment aids in evaluating the current data processing flows and identifyin­g any risk that the system may encounter.

Moreover, the DPA penalizes acts which put the personal data of the subject at risk, including but not limited to: unauthoriz­ed processing, access, improper disposal of personal informatio­n and sensitive personal informatio­n, intentiona­l breach, malicious disclosure­s, or any combinatio­n of these acts.

Data privacy should not be placed on the back burner of civic consciousn­ess. As a matter of public policy, individual­s have a right to be informed on matters concerning their personal informatio­n – from point of collection to their disposal. From a business perspectiv­e, it is likely that consumers will patronize service providers that properly handle their data. This added incentive translates to more bang for the buck.

While compliance with data protection policies may be an uphill battle, it is not an impossibly long shot. With the end goal in sight, surely a little inconvenie­nce wouldn’t hurt.

The views or opinions expressed in this article are solely those of the author and do not necessaril­y represent those of Isla Lipana & Co. The content is for general informatio­n purposes only, and should not be used as a substitute for specific advice.

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