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The domino effect of December 2026: Chile faces new data protection standard

December 1, 2026 will mark a decisive moment for Chilean companies: Law 21.719 on Personal Data Protection (LPDP) will come into full force and effect. It will be just over a year before this regulation transforms the way in which organizations of all sizes deal with customer, employee and supplier information. This is not a simple legal adjustment, but a structural change that could cost millions if it is not approached with planning and strategic vision. The LPDP establishes fines ranging from minor penalties of up to 100 UTM, through serious penalties of up to 1,000 UTM, to very serious penalties of up to 20,000 UTM, equivalent to approximately US$1.4 million. These penalties can be increased by 50% if the faults are not corrected in a timely manner and tripled in the case of recidivism. In addition, the creation of the **Personal Data Protection Agency** puts in the field a new autonomous regulator with the capacity to supervise and sanction.

Sectors in the spotlight

The impact of the LPDP will not be homogeneous. Each industry will face specific challenges that will force it to rethink processes and culture.

Retail: Retail and e-commerce chains must completely rethink consent management in omnichannel environments. Legacy systems complicate compliance with rights such as portability or the right to be forgotten, while the volume of sensitive data (purchase history, consumption patterns, geolocation in apps) requires robust governance platforms. The challenge is not only to avoid fines, but to sustain customer trust in a scenario of hypercompetition.

Banking and financial services: The banking sector is burdened with legacy systems that were not designed for the granularity required by the LPDP. Adaptation involves redesigning data flows, strengthening cybersecurity protocols and demonstrating traceability in every credit decision. At the same time, pressure from fintech competition means balancing strict compliance with rapid innovation, which strains both technology architecture and risk management.

Telecommunications: Telcos handle some of the most sensitive data: location, communication patterns and browsing habits. The LPDP will demand granular consent and clear opt-out mechanisms. The challenge is twofold: to adapt massive systems with millions of users and, at the same time, to innovate in business models where privacy can become a differentiating value proposition.

Health: Clinics, hospitals and insurance companies work with particularly sensitive information, such as medical records and biometric data. The LPDP requires advanced technical security measures, traceability of each access and the ability to respond to requests from data subjects within a short period of time. Here, non-compliance not only leads to financial penalties, but also to profound reputational damage in a sector that lives off patient trust.

Mining: In a country where mining is an economic engine, the challenges are particular. The use of biometrics to control access, geolocation data of workers at remote sites and the growing adoption of industrial IoT increase exposure to privacy risks. Complying with the LPDP in this sector involves integrating data security in hostile and distributed environments, aligning international suppliers and demonstrating accountability in a sector under heavy social and environmental scrutiny.

What Europe teaches

The European GDPR is a clear mirror: British Airways and Marriott were fined tens of millions of euros following security incidents that affected hundreds of thousands of customers. Beyond the figures, the real blow was the loss of trust and reputational costs. Chile is not immune to such scenarios, and the LPDP is designed precisely to prevent them from happening again.

Spending or strategic investment

Firms such as Deloitte, PwC, EY and Gartner estimate that the cost of implementing compliance in Chile will represent between 0.5% and 2% of a company’s annual revenue. A minor investment when compared to the financial and reputational risk involved in a sanction or a data leak. Companies that act sooner will not only avoid fines, but will also be able to use privacy as a competitive advantage in the face of consumers who are increasingly aware of the value of their data.

The key card: culture and strategy

LPDP is not solved by firewalls or paper policies alone. It requires a cultural change throughout the organization: marketing, legal, technology, operations and customer service must work under the same language of privacy and digital responsibility. Trust, that intangible that sustains the relationship with customers and users, will become the true thermometer of success.

The clock is ticking. With only 14 months to go until December 1, 2026, Chilean companies face a clear choice: invest today in compliance or risk millions of dollars in fines and loss of confidence tomorrow. The decision is not legal, it is strategic.

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