In today’s world, discussions about data are trending. With globalization driving unprecedented data flows, businesses must adapt to new advancements in data protection, regardless of their size. Even with current regulations, it’s very important for companies to maintain good corporate governance to deal with and protect personal data.

The Importance of Data Protection

Companies in Costa Rica must take personal data protection seriously, as the country has specific laws in place: the Law on Protection of Individuals Regarding the Processing of their Personal Data and its regulations. This legal framework mandates compliance from companies and individuals alike, emphasizing its significance as a public order law.

Costa Rican law categorizes data into restricted and unrestricted access. Public databases, such as the National Registry, offer unrestricted access. However, companies must be conscious of processing restricted, sensitive data, which includes information on racial origin, political opinions, religious beliefs, socioeconomic status, biomedical or genetic data, sexual life and orientation, among others.

Processing sensitive data requires explicit consent from the data subject. This is not just a legal requirement but a crucial step in avoiding legal issues. Proper documentation ensures compliance and mitigates risks associated with data processing. Mishandling data can lead to significant legal consequences, including lawsuits and compensation claims; thus, legal advice is essential.

Data processing encompasses any operation performed on personal data, whether automated or manual. This includes collecting, recording, organizing, storing, modifying, extracting, consulting, using, transmitting, disseminating, or making data accessible. It also involves comparing, interconnecting, blocking, erasing, or destroying data.

Therefore, companies planning to maintain a database or outsource it to a third party must execute the necessary documents to comply with the law and guidelines from the Agency for the Protection of Inhabitants’ Data (Prodhab). Maintaining confidentiality is crucial and must extend beyond the termination of the business relationship.

Companies must protect and respect individuals’ fundamental rights, including their right to informational self-determination. This involves handling personal data responsibly and ethically.

Before processing employee or client data, whether it is sensitive or not, consult your legal advisor to ensure compliance with data protection laws. This will help you avoid liabilities, compensations, and other setbacks that could jeopardize your company’s reputation and financial stability.

For more information, please contact André Cappella at acr@quatro.legal

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.