Panama's Law No. 81 on Personal Data Protection 2019 incorporates the personal and domestic use exemption, limiting the law's applicability to data processing activities carried out for strictly private purposes.

Text of Relevant Provisions

Law No. 81 Art.3(1):

"Excluded from the scope of this Law are those treatments expressly regulated by special laws or by the regulations that develop them, in addition to the following personal data treatments:

1. Those carried out by a natural person for exclusively personal or domestic activities."

Analysis of Provisions

The personal and domestic use exemption in Panama's data protection law is explicitly stated in Article 3(1) of Law No. 81. This provision excludes from the law's scope "those carried out by a natural person for exclusively personal or domestic activities".

This exemption is consistent with the general principle found in many data protection regimes worldwide, recognizing that individuals should be free to process personal data for their private purposes without being subject to the same stringent requirements as businesses or organizations.

The key elements of this exemption are:

1. It applies to "natural persons", meaning individuals rather than legal entities or organizations.
2. The activities must be "exclusively personal or domestic", indicating that any commercial or professional aspect would negate the exemption.

The use of the term "exclusively" suggests a narrow interpretation of this exemption. Activities that have any connection to professional, commercial, or public spheres would likely fall outside this exemption and thus be subject to the law's provisions.

Implications

This exemption has several implications for individuals and businesses:

1. Individual privacy: Panamanian citizens can maintain personal records, address books, or family photo albums without concern for compliance with data protection regulations.
2. Social media use: Personal use of social media platforms might fall under this exemption, but only if it's strictly for personal purposes and doesn't involve any commercial activities.
3. Home security systems: Personal home security cameras or smart home devices used solely for domestic purposes would likely be exempt.
4. Business activities: Any data processing that has a connection to professional or commercial activities, even if conducted by an individual, would not be exempt. For example:
   • A freelancer working from home and maintaining a client database
   • An individual selling items online and keeping customer records
   • A person running a blog that generates income through advertisements
5. Gray areas: There may be situations where the line between personal and professional use is blurred, such as:
   • Personal social media accounts used for both personal and business networking
   • Home-based businesses where personal and professional data processing overlap

In these cases, individuals and businesses should err on the side of caution and assume that the data protection law applies unless they can clearly demonstrate that the processing is exclusively for personal or domestic purposes.

For businesses operating in Panama, it's crucial to recognize that this exemption is narrow and does not apply to their data processing activities, even if they are small-scale or home-based operations. They must ensure compliance with Law No. 81 for all personal data processing activities that go beyond strictly personal or domestic use.