Data Privacy Act PH: What You Need to Know

Data is now one of the most valuable resources in business. From customer profiles to transaction histories, companies rely on information to make decisions, personalize services, and stay competitive. But in the Philippines, how businesses handle personal data is strictly governed by the Data Privacy Act of 2012 (Republic Act 10173).

For decision-makers, this law is central to building customer trust and avoiding costly penalties. Let’s break down what the Act means for your business, the rights it gives citizens, and how you can align analytics with compliance.

What is the Data Privacy Act of 2012?

The Philippine Data Privacy Act of 2012 (Republic Act No. 10173) is the national law that protects the personal data of individuals and regulates how organizations collect, process, store, and share it.

Enforced by the National Privacy Commission (NPC), this independent body has the authority to investigate complaints, impose penalties, and even issue orders to cease and desist non-compliant data processing operations.

What counts as personal data?

The law protects two major categories of data, each with its own level of required protection:

Personal information

Any data that can reasonably and directly identify an individual, such as their name, address, email, or contact number.

Sensitive personal information

Data that is highly protected and requires stricter handling. It includes information about an individual’s race, ethnic origin, marital status, age, color, and religious, philosophical, or political affiliations. It also contains data related to their health, education, genetic or sexual life, as well as government-issued identifiers like social security numbers.

Rights of data subjects (your customers and employees)

Under the Data Privacy Law in the Philippines, individuals have fundamental rights over their personal data. These include the right to:

• Be informed – Know exactly how their data is collected, processed, and used. 
• Access – Request a copy of the data a company holds about them.
• Object – Opt out of data processing, particularly for direct marketing or profiling.
• Erasure or blocking – Request the deletion of their personal data when it is no longer necessary or has been unlawfully processed.
• Damages – Claim compensation if they suffer harm due to the misuse or unauthorized processing of their data.

For example, if a customer unsubscribes from marketing emails, businesses must honor that request promptly and without penalty, or risk a formal complaint to the NPC.

Your Business Obligations Under the DPA 

Integrating analytics and securing databases into your customer data operations requires proactive compliance. Businesses must:

Appoint a Data Protection Officer (DPO)

Your Data Protection Officer should have a thorough understanding of privacy laws, your business operations, and your data systems. Having a DPO keeps you compliant, builds trust, improves responsiveness to data requests, and gives your business a competitive edge in a world where privacy is a priority.

Secure informed consent

Use clear, simple language to explain why you’re collecting data, and make it easy for people to say yes or no. For example, a retail brand should use a clear, unchecked consent box on its website that links directly to its privacy policy.

Use data responsibly (proportionality and transparency)

Only collect the data you absolutely need for a legitimate purpose. For instance, an e-commerce business needs a customer’s name and address for delivery, but asking for their income level without an apparent reason is a no-go.

Register specific data processing systems

You must register with the NPC if you handle sensitive personal data from at least 1,000 individuals, employ 250 or more people, or regularly engage in high-risk processing—even with fewer staff. The NPC can check your registration for a clear view of your data operations and confirm your commitment to using data lawfully and responsibly.

Implement strong security measures

Encrypt sensitive data both when it’s being sent and when it’s stored. Set up strict access controls, like multi-factor authentication, to ensure only authorized people can view personal data. Regularly update your systems to identify and address any vulnerabilities.

Handle third-party sharing with care 

Remember, you’re still accountable for data even when you share it with other vendors or partners. Make sure you have formal Data Sharing Agreements that clearly outline their security and compliance obligations.

Conduct regular training

Everyone on your staff, especially in marketing, IT, and analytics, needs to understand their role in following the DPA rules. Regular training and drills are crucial for employees to know how to handle data securely and respond appropriately in the event of an incident.

Penalties for Non-Compliance 

The DPA imposes severe penalties for non-compliance:

Fines

The law allows for fines of ₱50,000 to ₱5 million depending on the violation. The NPC can also impose administrative penalties tied to a percentage of a company’s annual gross income.

Imprisonment

Responsible officers of a company can face imprisonment for 1 to 6 years in severe cases, particularly for deliberate and malicious violations.

Enforcement actions

The NPC holds the power to issue enforcement orders, including cease-and-desist orders that can temporarily or permanently suspend a company’s data processing operations.

Why the DPA Matters Even More in 2025 and Beyond

Since the DPA’s enactment in 2012, the digital landscape has transformed at an accelerated pace, presenting both opportunities and new privacy challenges:

• E-commerce and retail

With millions of Filipinos now shopping online, customer data has become central to personalizing shopping experiences, from targeted promotions to tailored recommendations.

• AI and machine learning

The widespread adoption of AI in business analytics means automated decision-making and predictive models rely heavily on large, compliant datasets. It raises new risks, such as algorithmic bias and data poisoning.

• Third-party platforms

Businesses increasingly integrate with a global network of platforms—from ad networks and cloud providers to payment gateways—creating complex cross-border data flows that require robust privacy safeguards.

In this new reality, privacy is no longer just about avoiding penalties. It has become a crucial element for building customer trust, serving as a decisive competitive advantage.

Build a Privacy-First Business with Inquiro

The Data Privacy Act of 2012 is a foundation for ethical, customer-centric business in the Philippines. By securing consent, limiting data use, and investing in strong safeguards, companies can avoid penalties and gain trust in a market where data security matters more than ever.

At Inquiro, we help businesses unlock customer insights without compromising compliance. 

Our business analytics solutions combine advanced analytics with privacy-first practices so you can understand customer behavior while protecting personal data. You can also implement foot traffic and engagement analytics with built-in safeguards and access 360° customer dashboards designed to align with the Philippine Data Privacy Act.

With Inquiro, you don’t have to choose between compliance and growth. You can have both.

Ready to turn privacy compliance into a business advantage? Request a demo today and discover Inquiro’s solutions.