PDPA Accountability Obligation: 11 Key Obligations For Companies

by 16 December 2024Corporate & Commercial, Knowledge & Insights

In an increasingly digital world, understanding the PDPA accountability obligation is important for organisations in Singapore. The Personal Data Protection Act (PDPA) sets essential guidelines governing personal data collection, use, and disclosure.

For companies, navigating these obligations is not just about compliance but building trust with customers and safeguarding sensitive information. This blog looks into the 11 obligations of the PDPA, providing you with the insights needed to ensure your organisation adheres to these critical standards.

Read on to discover how to comply with PDPA and implement these obligations effectively to fortify your data protection practices.

 

1. Accountability Obligation

The accountability obligation is a fundamental principle of the PDPA that requires organisations to take responsibility for personal data protection.

Companies must designate a Data Protection Officer (DPO) who oversees compliance with the PDPA and acts as a point of contact for individuals regarding their personal data. This obligation emphasises the importance of accountability within organisations, ensuring clear processes and policies are in place for managing personal data.

By fulfilling the PDPA accountability obligation, companies fulfil their commitment to safeguarding individuals’ privacy and maintaining their customers’ trust.

 

2. Notification Obligation

The notification obligation mandates that organisations must inform individuals about the purposes for which their data is collected, used, or disclosed. This notification must occur at or before the time of collection and should be communicated clearly and understandably.

Providing this information is essential for compliance with the PDPA for companies, as it ensures that individuals know how their data will be handled. By fulfilling this obligation, organisations promote transparency and respect for individuals’ privacy rights.

 

3. Consent Obligation

The consent obligation requires organisations to obtain explicit permission from individuals before collecting, using, or disclosing their data. This consent must be informed and obtained through unambiguous means.

Organisations must ensure that individuals fully understand their consent, which aligns with the PDPA consent obligation. By respecting this obligation, organisations empower individuals and safeguard their data, ensuring that data handling practices comply with the PDPA.

 

4. Purpose Limitation Obligation

The purpose limitation obligation mandates that organisations may collect, use, or disclose personal data only for specific, legitimate purposes that have been communicated to the individuals concerned. This means personal data must not be used for other purposes without obtaining further consent.

Adhering to this obligation is crucial, especially in light of PDPA breach cases in Singapore, where misuse of personal data can lead to legal repercussions. Organisations build trust and comply with regulatory expectations by ensuring that data is used appropriately.

5. Accuracy Obligation

The accuracy obligation requires organisations to take reasonable steps to protect the personal data they collect is accurate and up-to-date. This involves implementing processes for regularly reviewing and correcting personal data as needed.

Compliance with this obligation is vital to prevent errors that could lead to potential PDPC breach notification requirements if inaccurate data leads to a data breach. By prioritising data accuracy, organisations not only comply with the PDPA but also enhance their reputation and reliability in managing personal information.

 

6. Protection Obligation

The protection obligation requires organisations to follow appropriate security measures to protect personal data from unauthorised access, collection, use, or disclosure. This includes physical, technical, and administrative safeguards tailored to the data’s sensitivity.

By effectively addressing this obligation, organisations can reduce the likelihood of incidents that compromise security, particularly on personal data websites. A strong commitment to data protection ensures compliance with the PDPA and fosters consumer confidence in online services.

 

7. Retention Limitation Obligation

The retention limitation obligation stipulates that organisations should retain personal data only for as long as necessary to fulfil the purposes for which it was collected. Once the data is no longer needed, it must be disposed of securely to prevent unauthorised access.

This obligation is critical, particularly in the context of PDPA breach cases in Singapore, where retaining data longer than necessary can increase the risk of breaches. Organisations can ensure compliance by implementing robust data retention policies while protecting individuals’ privacy rights.

 

8. Transfer Limitation Obligation

The transfer limitation obligation requires organisations to ensure that personal data transferred to third parties or outside Singapore is adequately protected. This includes following due diligence on third parties’ data protection measures and ensuring they meet the standards set by the PDPA.

Failure to meet this obligation can lead to serious repercussions, including the need for PDPC breach notification if personal data is mishandled during the transfer process. By adhering to this obligation, organisations can maintain the integrity and confidentiality of personal data, regardless of where it is processed.

 

9. Access And Correction Obligation

The access and correction obligation gives individuals the right to access their data held by organisations and request modifications if the data is inaccurate or incomplete. Organisations must provide a straightforward process for individuals to make these requests and respond promptly.

This obligation is essential for maintaining transparency and trust, especially for personal data websites, where individuals expect their information to be managed responsibly. By facilitating access and corrections, organisations demonstrate their commitment to compliance with the PDPA and uphold individuals’ rights regarding their personal information.

10. Data Breach Notification Obligation

The data breach notification obligation mandates that organisations notify the Personal Data Protection Commission (PDPC) and affected individuals in the event of a data breach. This obligation applies when a breach results in significant harm to individuals or is likely to result in such harm.

Organisations must act quickly to assess the breach’s impact, determine the necessary notifications, and communicate effectively with affected parties. Timely compliance with this obligation is crucial to mitigate potential harm and legal repercussions, reinforcing trust and transparency in data handling practices.

 

11. Data Portability Obligation

The data portability obligation allows individuals to request the transfer of their data from one organisation to another in a structured, commonly used, and machine-readable format. This empowers individuals to manage their personal information more effectively and facilitates more significant control over how their data is used across different services.

Organisations must ensure they have the systems and processes to accommodate such requests promptly. By complying with this obligation, organisations support individuals’ rights and enhance their reputation for being transparent and customer-focused in their data practices.

 

What Is The Personal Data Protection Act (PDPA) In Singapore?

The PDPA regulates how organisations in Singapore collect, use, and disclose personal data, a process commonly referred to as “processing.” It was enacted in 2012 to protect the data rights of individuals, and places a burden of care on companies to safeguard the security of personal data flowing within their organisation.

According to the PDPA, a piece of data is considered “personal data” if:

  1. A person can be identified using that data alone (often referred to as “unique identifiers”; or
  2. A person can be identified using that data combined with any other information the organisation has or is likely to have access to.

Examples of what constitutes personal data include an individual’s:

  • Full name
  • NRIC number
  • Passport number
  • Personal mobile telephone number
  • Emails and text messages
  • Residential or business address
  • Occupation and educational qualifications
  • Facial image or recording
  • Voice recording
  • Fingerprint

 

Conclusion About PDPA For Companies In Singapore

Understanding and complying with the Personal Data Protection Act (PDPA) is important for companies to establish a framework that not only protects individuals’ personal data but also helps organisations build trust with their customers.

Implementing effective data protection practices is not merely a regulatory requirement; it is a vital component of responsible business operations in today’s digital landscape.

Need help ensuring your Privacy Policy is as watertight as can be? Our corporate lawyers are well-versed in all areas related to business law and the PDPA. Contact us today for a consultation. And if you are undergoing any personal legal implications as a result of a data breach at your company, our team of highly experienced criminal lawyers is here to help.

 

Frequently Asked Questions About PDPA For Companies In Singapore

Why Is PDPA Important For Companies?

The PDPA governs the collection, use, and disclosure of personal data by organisations. It is important for companies as it establishes guidelines that protect individuals’ personal data, thereby fostering trust and accountability in business operations.

How Can Companies Ensure Compliance With The PDPA?

Companies can ensure compliance by conducting data audits, appointing a Data Protection Officer (DPO), developing data protection policies, training employees, implementing security measures, and regularly reviewing their data protection practices.

What Are The Consequences Of Non-Compliance With The PDPA?

Non-compliance with the PDPA can result in significant penalties, including fines, reputational damage, and legal action. Companies may also face increased scrutiny from the Personal Data Protection Commission (PDPC) and potential loss of customer trust.

What Steps Should Organisations Take If A Data Breach Occurs?

When a data breach occurs, organisations should evaluate the circumstances, take steps to contain the breach, notify those impacted, and alert the PDPC if the breach presents a substantial risk of harm. Effective management of the breach relies on prompt and clear communication.

 

About the author

About the author

Jonathan Wong

Jonathan is the Founder and Managing Director of Tembusu Law. He is also the founder of LawGuide Singapore, a prominent legaltech startup which successfully created and launched Singapore’s first legal chatbot in 2017.

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