In Nicaragua and the rest of Central America, more and more companies are managing databases of customers, suppliers, and employees without realizing that they are assuming a specific legal responsibility. Personal data is not just any asset: it belongs to the data subject, and whoever collects and processes it becomes responsible for its protection and, therefore, a temporary custodian of that trust. In Nicaragua, this responsibility is clearly regulated by Law No. 787, the Personal Data Protection Law, and its implementing regulations, Decree No. 36-2012, which require informed consent, a legitimate purpose, security, and transparency in any processing of personal information.
Digital transformation, the growth of e-commerce, and the use of new technologies have increased the volume of information managed by companies. In this context, implementing a compliance program is no longer merely a legal obligation but a strategic decision that strengthens trust and adds value to the business.
Based on practical experience advising companies across various sectors, these are the 10 most common mistakes when handling personal data, along with some recommendations for correcting them.
- Collecting data without informing the data subject
Many companies request a name, ID number, email address, physical address, or phone number without explaining how they will use this information. The law requires that the data subject be informed, before providing their data, of the purpose, the data controller, and the scope of the processing. The solution is simple: a clear, visible privacy notice provided prior to data collection can prevent future complaints.
- Assuming that consent is always implied
The fact that someone voluntarily provides their information does not, in and of itself, constitute the consent required by law. Article 6 of Law No. 787 governs this matter and requires the data subject to grant consent for the provision of their data. Meanwhile, Articles 5 and 6 of the Regulations distinguish between two types of consent: tacit consent, which is valid as a general rule unless the law requires express consent, in which case the company must first provide an informational notice and the data subject must not object within the legal timeframe; and express consent, which is mandatory in cases involving financial or sensitive data. Many companies, without realizing it, process data that requires express consent under the mistaken assumption that it is sufficient for the customer to have provided the information. And in either case, Article 11 of the Regulations is unequivocal: the burden of proof regarding the existence of consent always lies with the company responsible for the data file, never with the data subject. Without documented evidence of that authorization, the company is exposed to potential claims.
- Using data for purposes other than those disclosed
Collecting an email address for billing purposes and then using it for marketing campaigns without obtaining new consent violates the principle of legitimate purpose. Each additional use of the data must be disclosed to the data subject and consented to by them.
- Storing information in Excel spreadsheets without access controls
Databases shared via email, without passwords or restrictions, remain common practice in small and medium-sized businesses and large corporations alike. Every unprotected file is an open door to data loss, leaks, or misuse. The solution is to migrate to centralized repositories with role-based access restrictions, protect any shared files with passwords or encryption, and periodically purge information that no longer serves a legitimate purpose.
- Collecting more information than necessary
It is common to request data that is not essential for providing a service or entering into a business relationship. The principle must be clear: collect only the information necessary for the intended purpose.
- Omitting confidentiality and data protection clauses in contracts
Employment contracts, service agreements, or contracts with suppliers that do not regulate the processing of personal data leave a gap that becomes critical in the event of any incident or audit by a business partner or investor. For this reason, the company must verify that each of its contracts contains the necessary protections.
- Failing to establish internal policies and procedures
When employees do not know how to handle personal information, the risk of incidents increases significantly. Internal policies and procedures are an essential preventive tool. Furthermore, when a data breach occurs, the lack of a clear procedure on how to act, whom to notify, and how to mitigate the damage exacerbates the reputational and legal consequences. The company needs to design internal policies and establish clear procedures and protocols for any incident and communicate them to its staff.
- Installing video surveillance cameras and biometric devices without prior notice
Camera monitoring also involves the processing of personal data. The same applies to fingerprint scanners, facial recognition systems, or other biometric mechanisms that many companies install to control access to facilities or track employee entry and exit. Failing to obtain consent, as well as failing to provide visible signage and the corresponding informational notice, is a common violation that is rarely corrected until it leads to a complaint. The solution is to clearly mark the cameras, inform employees about the use of biometric devices, and obtain the data subject’s express consent before implementing them.
- Failing to train staff who handle customer or employee information
Technology alone does not protect data; the people who handle it on a daily basis are either the first line of defense or the greatest risk. Without regular training, human errors — sending information to the wrong recipient or downloading databases onto personal devices — are bound to recur. Therefore, companies must ensure they provide regular training to all staff on the handling of personal data.
- Treating compliance as a formality, not as a strategy
This is, perhaps, the fundamental mistake that underlies the other nine. Complying with Law No. 787 is not an isolated administrative procedure, but a strategic decision for sustainability. Companies that manage personal data with transparency and security convey to the market something that no advertising campaign can achieve: seriousness, ethics, and reliability. The solution begins with treating data protection as an ongoing corporate policy, subject to periodic review, rather than as an isolated task addressed only when a problem arises.
The real cost of failing to protect personal data
Failure to meet these obligations can result not only in administrative penalties, but also in the loss of trust from customers, employees, and business partners, an asset that takes years to build and seconds to lose. In a regional environment where partnerships, bidding processes, and investor relations increasingly demand higher privacy standards, compliance today opens commercial doors tomorrow.
Four key questions for your company
- Every company should ask itself:
- Do we know for certain what personal data we handle and where it is stored?
- Do we have valid and verifiable consent?
- Do we have internal policies and incident response protocols?
- Are we training our staff?
If the answer to any of these questions is uncertain, it is time to act before a regulatory authority, a customer, or a business partner points it out.
How to correct these personal data mistakes: where to start
None of these ten mistakes can be corrected overnight, nor is it advisable to attempt to do so without a clear roadmap of where to start. What can be done immediately, however, is to prioritize: identify which data currently poses the greatest risk, verify whether there is actual evidence of consent, and, with the guidance of a legal advisor specializing in data protection, develop a compliance plan tailored to each company’s size and operations.
The best opportunity to strengthen compliance is before the first incident occurs. Reviewing internal processes today can prevent significant risks tomorrow.