Mexico’s new Federal Law on the Protection of Personal Data Held by Private Parties (FLPPD) has introduced several fundamental changes affecting both individuals and businesses alike. This significant legislation, which came into effect on March 21st, has reshaped the landscape of privacy regulations. One of the most notable changes is the expansion of the definition of personal data. Now, personal data encompasses not just information pertaining to natural persons but also legal entities. As a result, companies can now exercise rights such as access, rectification, cancellation, and objection — collectively known as ARCO Rights.
Expanded Definition and ARCO Rights
The expanded definition of personal data under the new law means that information about an identified or identifiable person, whether natural or legal, is protected. Companies can now invoke ARCO Rights, which ensures that data held by them meets stringent regulatory standards. These rights include accessing the data held, rectifying incorrect data, canceling data that is no longer required, and objecting to the processing of their data under certain circumstances. This means that businesses are now accountable not just for how they handle individual data but also for other legal entities’ data, which necessitates a thorough review and possibly an overhaul of data management practices.
With the FLPPD’s implementation, organizations must also ensure they have appropriate privacy notices and mechanisms in place to comply with their obligations. Ensuring compliance involves providing transparent privacy notices to data subjects and obtaining their consent where necessary. Notably, the law also emphasizes the importance of maintaining data confidentiality even after the relationship between data controllers and third parties ends. This includes implementing structures to ensure that third parties uphold data confidentiality, which might require renegotiation of existing contracts and tightening of data security measures within the organization.
New Obligations and Self-Regulation
Under the new regulatory framework, data processors face a range of fresh obligations. One newly required practice is the provision of simplified privacy notices when data is collected electronically, meaning that clear and concise information about data collection practices must be presented at the point of data collection. Organizations are also tasked with promoting data protection internally and establishing measures to ensure personal data’s confidentiality is maintained even after data controllers and third parties conclude their agreements. An essential part of these obligations is ensuring that third-party relationships are governed by strict data protection clauses.
The focus on self-regulation is another progressive aspect of the updated law. The framework encourages data processors to engage in self-regulation by negotiating and agreeing on internal compliance metrics and sanctions through codes, policies, regulations, and organizational processes. By promoting self-regulation, the law aims to streamline adherence to data protection requirements and support data owners in exercising their rights effectively. This self-regulation approach should motivate organizations to foster a robust culture of data protection and privacy awareness, ensuring continuous compliance and minimizing legal risks.
Judicial Protection and Penalties
To further strengthen the implementation and compliance of the FLPPD, the law mandates the establishment of district and specialized courts within 120 days of the law’s enactment. These courts are specifically created to handle constitutional remedy requests, known as amparo petitions, related to personal data protection. Such a measure is significant in enhancing the judicial protection of personal data, ensuring that individuals and legal entities have access to judicial recourse when their data protection rights are violated.
The penalties for non-compliance with the FLPPD remain substantial and must be taken seriously by organizations. Although unchanged, the fines range from 100 to 320,000 Units of Measurement and Update, equivalent to USD$565.70 to USD$1,810,240. These penalties are even higher in cases involving sensitive data, where misuse could lead to discrimination. Therefore, businesses must not only understand the financial implications of non-compliance but also the reputational damage and loss of trust that could ensue, making robust data protection practices a critical aspect of organizational strategy.
The Road Ahead for Businesses in Mexico
Mexico’s new Federal Law on the Protection of Personal Data Held by Private Parties (FLPPD) has ushered in significant changes that impact both individuals and businesses. Enacted on March 21st, this comprehensive legislation has redefined privacy regulations. A major shift is the broader definition of personal data, which now includes information related to both natural persons and legal entities. Consequently, businesses, along with individuals, can now invoke ARCO Rights—Access, Rectification, Cancellation, and Objection.
The law imposes stricter guidelines on how personal data should be handled, ensuring that private parties, including companies and organizations, exercise greater responsibility and transparency. This includes specific requirements for obtaining consent, implementing security measures, and informing individuals about how their data will be used. By extending protections to legal entities, the FLPPD aims to enhance privacy rights across the board, ensuring both individuals and companies benefit from increased data security and control.
