An Overview of Data Protection in Mexico

Mexico's data protection rules are becoming increasingly important for businesses operating in the country. Companies looking to expand into the Aztec country need to be aware of the intricacies of their data protection law. But what does the law actually entail?

What the Mexican law says

The Federal Law on the Protection of Personal Data Held by Private Parties (Ley Federal de Protección de Datos Personales en Posesión de Particulares or LFPDPPP), was passed in 2010 and applies to all private parties that handle personal data, including businesses. The law aims to protect the privacy of individuals by regulating the collection, use, storage, and transfer of personal information. It requires companies to obtain consent from individuals before collecting their personal data and to use that data only for the purposes for which it was collected. Companies must also take steps to ensure that personal data is kept secure and confidential.

The LFPDPPP has several requirements that businesses must comply with. These include:

• Lawfulness: As a general rule, businesses must rely on a legal basis to ensure the lawfulness of data processing activities.
• Protection of the “ARCO”: these are the data subject’s rights to Access, Rectification, Cancellation and Objection. Other rights are also guaranteed, such as the right to revoke consent. 
• Ensuring security: Businesses must take steps to ensure the security of personal data. This includes implementing security measures to prevent unauthorized access, use, or disclosure of personal data.
• Appoint an Oficial de Protección de Datos (Data Protection Officer): All data controllers must appoint a responsible person or department to overview data protection within the organization, ensure compliance, and respond to data subject’s requests. 

Non-compliance with the LFPDPPP can result in significant consequences for businesses. The law provides for fines of up to 320,000 daily minimum wages (approximately 3.5 million euros in March of 2023) or double in the case of sensitive personal data. In addition, individuals who benefit from data breaches may be subject to imprisonment. Companies may face reputational damage and loss of customer trust if they are found to have mishandled personal data.

The takeaway for businesses operating in Mexico

The impact of Mexico's data protection laws on businesses can be significant. Compliance with the LFPDPPP can be challenging, particularly for companies that collect and use large amounts of personal data. Businesses must invest in the infrastructure and resources needed to ensure compliance, including engaging expert consultants to help them implement data protection policies and procedures, train staff on data protection practices, and ensure that data security measures are in place.