Federal Law on Protection of Personal Data Held by Private Parties (LFPDPPP)

The Federal Law on Protection of Personal Data Held by Private Parties (LFPDPPP) is Mexico’s primary data protection law, regulating the collection, use, and storage of personal data by private organizations. It emphasizes user rights, consent, and transparency, applying to Mexican companies and foreign businesses handling Mexican residents’ data. Compliance with LFPDPPP is essential for companies seeking to operate within Mexico.

• Data Consent: Organizations must obtain clear, informed consent from individuals before collecting their personal data.
• Transparency: Companies must disclose data collection and usage practices to individuals, including the purpose and retention period.
• Data Subject Rights: Individuals have the right to access, correct, and delete their data, as well as the right to object to data processing.
• Security Measures: Companies must implement appropriate security measures to protect data from unauthorized access and breaches.
• Cross-Border Data Transfers: When transferring data outside Mexico, companies must ensure that the recipient meets adequate privacy standards.

The LFPDPPP was enacted in 2010, with further updates from the National Institute of Transparency, Access to Information, and Personal Data Protection (INAI). Organizations must stay updated on guidance and enforcement trends.

• Fines and Penalties: Non-compliance can result in fines up to 320,000 times the daily minimum wage in Mexico.
• Legal Actions: Individuals and regulatory bodies may pursue claims against non-compliant companies.
• Reputational Damage: Privacy breaches or non-compliance can harm a company’s reputation in Mexico.
• Operational Disruptions: Addressing non-compliance can require resource-intensive adjustments to data management practices.

• Market Access: Compliance with LFPDPPP allows smooth operations within Mexico’s market.
• Enhanced Data Security: Adhering to the law’s standards reduces data breach risks.
• Consumer Trust: Transparent data practices build trust with Mexican customers.
• Alignment with Global Standards: Compliance with LFPDPPP supports global data protection efforts.