Personal Data Protection in Mexico’s Private Sector: Strengthened Obligations Under the New Legal Framework

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A New Stage for Personal Data Processing in the Private Sector

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On March 20, 2025, Mexico published the new Federal Law on the Protection of Personal Data Held by Private Parties in the Official Gazette. This law updates and expands the legal framework applicable to companies, individuals, and private organizations that collect, use, or store personal data for professional or commercial purposes.

It replaces the 2010 version of the law, introducing more precise definitions, expanded rights for data subjects, stricter security standards, and new grounds for infractions and sanctions. It also formalizes self-regulation mechanisms and consolidates the role of the Ministry of Anti-Corruption and Good Governance as the supervisory authority.

For companies, this represents a major shift: personal data protection is no longer a generic compliance task, but a critical element of business operations, reputation, and corporate responsibility.

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Key Provisions: Principles, Definitions, and Scope

Core Principles of Data Processing

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The law reinforces existing principles and demands that data controllers ensure processing activities comply with:

• Lawfulness and consent: Data must be collected and processed legally, with the subject’s consent unless specific exceptions apply.
• Purpose limitation: Data must be used only for the purposes stated in the privacy notice.
• Proportionality and quality: Excessive processing is prohibited, and data must be accurate, updated, and necessary.
• Clear and accessible information: The privacy notice must be easy to understand, accurate, and readily available.
• Proactive responsibility: Controllers must adopt compliance measures even in the absence of external demands.
  
  

These principles must be reflected in all documents, systems, and processes, including third-party agreements.

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Updated Definitions: Precision and Expanded Reach

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The law introduces refined legal definitions that broaden its application:

• Personal data: Includes any information that directly or indirectly identifies a person, including via reasonable inferences.
• Sensitive data: Explicitly includes biometric, genetic, political, and sexual orientation information.
• Processing: Covers both automated and manual activities, such as paper-based data collection.
• Public sources: Restricts data from public sources, excluding unlawfully obtained or confidential information.
  
  

Companies must revisit how they structure databases, CRM systems, physical forms, and digital platforms.

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Reinforced Rights, Privacy Notices, and Automated Processing

Expanded ARCO Rights and New Legal Figures

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The law strengthens data subjects’ rights:

• Right of access: Now includes not only access to data, but information on the conditions of processing.
• Right of rectification: Allows updating of outdated or incorrect information.
• Right of opposition: Introduces “legitimate cause” as a basis to object, though its vagueness may lead to conflicting interpretations.
• Right to portability: Data subjects can request their data in a structured, commonly used format and transfer it to another controller.
• Right to object to automated decision-making: Individuals can reject decisions made solely by algorithms or AI when they significantly affect them.
  
  

Companies must implement functional, accessible procedures for handling requests and appeals.

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Privacy Notices: Legal Tools, Not Formalities

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The privacy notice becomes a legally binding document. Key updates include:

• Clear description of processing purposes
• Legal grounds for processing
• Details of national and international transfers
• Contact information for exercising rights
• Disclosure of automated decisions or profiling
• Retention periods and data deletion criteria
  
  

Generic or outdated privacy notices can be considered legal violations.

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Automated Processing and Emerging Technologies

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The law recognizes the use of AI, profiling systems, and algorithmic decision-making tools in private operations, such as:

• Recommendation engines
• Predictive analytics
• Automated selection systems
• Monitoring technologies
  
  

If such processing significantly affects individuals, companies must:

• Clearly disclose it in the privacy notice
• Allow subjects to opt out
• Ensure human oversight of automated decisions
  
  

These provisions are especially relevant for tech firms, fintechs, digital platforms, and data-driven companies.

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Compliance, Sanctions, and Private Sector Risks

Formal Obligations for Data Controllers

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Controllers must comply with several concrete obligations:

• Implement a documented data management system (internal policies, protocols, manuals, audits)
• Adopt administrative, technical, and physical security measures suited to the nature and risk of the data
• Train all staff involved in processing activities
• Provide formal channels for exercising ARCO rights
• Report security breaches according to legal procedures
  
  

Compliance must be proactive, verifiable, and enforceable.

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Sanctions and Legal Consequences

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The new legal regime expands violations and toughens penalties:

• Fines proportionate to damages, recurrence, and the company’s financial capacity
• Corrective measures, including data deletion or suspension of processing
• Direct liability of individuals who act negligently or unlawfully
  
  

Non-compliance can also lead to judicial action, amparo lawsuits, damages claims, and even criminal charges in cases of intentional data leaks.

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Operational, Reputational, and Regulatory Risks

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Beyond formal sanctions, poor data handling can result in:

• Loss of client, investor, or partner trust
• Negative media coverage
• Ineligibility for public contracts
• More aggressive regulatory or fiscal audits
  
  

Data protection is now a core area of business risk management. Companies must address it with formal procedures, internal controls, and legal compliance mechanisms.

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Conclusion: Legal Compliance as Corporate Strategy

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The Federal Law on the Protection of Personal Data Held by Private Parties marks a deep transformation in how businesses handle personal data in Mexico. The law raises compliance standards and places data privacy at the heart of corporate governance.

These obligations require clear legal implementation, documented internal processes, investment in secure systems, and accountability across the organization.

At EBL Consulting Group, we advise private organizations on implementing this legal framework—from risk assessment to policy design and incident response. Our approach combines legal expertise and strategic insight to ensure that personal data protection in Mexico’s private sector is implemented effectively and with full regulatory compliance.

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