Chile’s long-awaited Personal Data Protection Law is finally coming into full force at the end of 2026, and businesses across the country are scrambling to get ready. One role that’s quietly emerging as a game-changer? The Data Protection Officer — someone who can steer companies through the new rules without stifling growth.
For years, Chile operated under an outdated privacy framework — Law 19.628, the Law on the Protection of Private Life — that felt more like a relic from the pre-internet era. The new Law No. 21.719, commonly called the LPDP, brings the country much closer to modern global standards. It introduces tougher obligations for handling personal data, clearer rights for individuals, and a dedicated agency to enforce it all. When it fully kicks in on December 1, 2026, there will be no more excuses for sloppy data practices.
Amid all this change, many organizations are asking the same question: Do we really need a Data Protection Officer? The short answer is no — it’s not mandatory like in Europe. But the smarter answer is yes, because having one could save your company from headaches, fines, and lost trust down the line.
What Exactly Does a DPO Do in Chile?
Think of the Data Protection Officer as the bridge between legal compliance and day-to-day business. Their main job is to keep an eye on how the organization handles personal data, making sure everything aligns with the LPDP. They act as the go-to person when the new Personal Data Protection Agency comes knocking with questions, and they’re also the point of contact for employees or customers raising privacy concerns.
But the role goes deeper than just checking boxes. A good DPO advises leadership on privacy risks, especially when rolling out new technologies like AI tools or big data analytics. They help run training sessions so everyone in the company understands the rules. And crucially, they work to build a culture where data protection isn’t seen as a burden but as part of responsible business.
Under Article 49 of the LPDP, appointing a DPO isn’t required across the board. Instead, it’s tied to a voluntary “infringement prevention model” that companies can adopt to show they’re serious about compliance. Recent regulations from the Ministry of Finance — Decree No. 662/2025 — spell out how these models work, allowing the DPO to be an internal hire or an outsourced expert. The key requirement? Independence. Even if the person wears other hats in the company, they can’t be pressured when it comes to privacy decisions.
How Chile’s Approach Differs from Europe’s GDPR
A lot of people naturally compare Chile’s law to the EU’s General Data Protection Regulation, which has been the gold standard since 2018. In Europe, certain organizations must appoint a DPO — public bodies, companies doing large-scale monitoring, or those handling sensitive data on a big scale. No exceptions.
Chile took a more flexible path. There’s no blanket mandate, which makes sense for a diverse economy with everything from small startups to massive mining conglomerates. But that flexibility doesn’t mean the role is optional for everyone. Companies whose entire business model revolves around data — think fintech apps, health tech providers, or marketing firms using detailed customer profiles — are exposing themselves to serious risk without someone dedicated to privacy oversight.
Interestingly, European experience shows that even where the role isn’t strictly required, many smaller companies have embraced it anyway. Surveys from France’s data protection authority, the CNIL, reveal that most DPOs juggle the job with other responsibilities. In 2024, around 85% of them weren’t working on privacy full-time. And as AI has exploded, many European DPOs have taken on extra duties overseeing ethical frameworks for algorithms — a trend that’s highly relevant for Chilean businesses racing to adopt similar tech.
The Real-World Benefits That Make a DPO Worth It
So why go through the effort? First and foremost, avoiding penalties. The new law brings real teeth: fines can climb into the millions, and reputational damage from a data breach can be even costlier. A dedicated officer helps spot issues early, implement better safeguards, and respond quickly if something goes wrong.
Beyond defense, there’s offense. Companies that handle data responsibly build trust — with customers, partners, and investors. In sectors like banking, insurance, IT consulting, and research, where personal information flows constantly, a strong privacy posture becomes a competitive edge. Customers are increasingly savvy; they want to know their data isn’t being mishandled.
Studies back this up. Research from European regulators has shown tangible economic returns from investing in privacy roles — fewer incidents, better data quality, and streamlined processes. One survey found that nearly six in ten organizations now view compliance not as a cost center but as a strategic opportunity. In Chile, where the digital economy is growing fast, getting ahead on privacy could mean capturing more market share as consumers demand higher standards.
There’s also the innovation angle. The LPDP isn’t designed to block progress; it’s meant to enable it responsibly. A skilled DPO can guide teams on how to use data creatively while staying within bounds — conducting privacy impact assessments for new products, advising on anonymization techniques, or ensuring AI systems don’t discriminate. Without that expertise in-house, companies risk launching features that later need expensive fixes or outright withdrawal.
When Does It Make the Most Sense to Appoint One?
Not every corner store needs a full-time privacy expert. But if your organization processes large volumes of sensitive data — health records, financial details, biometric information — or relies on intrusive technologies like constant tracking, the case is clear. The same goes for any business that commercializes data or operates across borders, where multiple privacy regimes overlap.
Even smaller firms can benefit from a part-time or shared DPO, perhaps through a consultancy. The regulations explicitly allow external appointments, which lowers the barrier for companies without deep pockets. The important thing is matching the role to your actual risk profile. A quick internal audit can reveal whether your current setup leaves gaps that a DPO could fill.
How You Can Help Build a Privacy Culture in Chile
As December 2026 approaches, forward-thinking Chilean companies are already moving. They’re not waiting for enforcement actions to force their hand. Instead, they’re treating privacy as part of their broader strategy for growth in a digital world.
Appointing a Data Protection Officer sends a strong signal — internally and externally — that your organization takes personal data seriously. It helps foster a culture where employees think about privacy from the start, not as an afterthought. And in the long run, that culture pays dividends: fewer mistakes, stronger customer loyalty, and the freedom to innovate without constant fear of regulatory backlash.
Chile’s new law represents a major step forward for individual rights and for the country’s place in the global digital economy. Companies that embrace roles like the DPO won’t just comply — they’ll lead. In an era where data is often called the new oil, having someone dedicated to handling it responsibly isn’t a luxury. It’s becoming essential.
