Ecuador establishes framework for legitimate interest data processing

Ecuador's Superintendent of Personal Data Protection issued Resolution No. SPDP-SPD-2025-0041-R on November 7, 2025, establishing detailed requirements for organizations that claim legitimate interest as their legal basis for processing personal data. The regulations mandate prior written assessments demonstrating that controllers' interests do not override individuals' fundamental rights.

The framework applies exclusively to private sector entities within Ecuador's territory, according to the resolution signed by Superintendent Fabrizio Peralta-Díaz in Santiago de Guayaquil. Organizations must conduct balancing tests evaluating the nature of data collected, categories of individuals affected, context of collection, data volumes, and potential international transfers before implementing legitimate interest-based processing.

Balancing test requirements create compliance burden

Companies invoking legitimate interest must complete documented assessments analyzing whether their data processing purposes are lawful, real, concrete, proportional, and compatible with individuals' reasonable expectations. The regulation specifies that legitimate interest must be specific and determined, responding to certain, current, and verifiable needs rather than hypothetical circumstances or future events.

According to Article 6 of the regulation, controllers must provide written justification explaining why data processing is essential to achieve stated objectives. Organizations must demonstrate that no less invasive alternative methods exist that could accomplish the same result with reduced impact on privacy.

The balancing assessment must address five specific areas: suitability of legitimate interest, justification of processing necessity, weighing of impacts on individuals, security measures implementation, and final conclusions about processing admissibility. Each processing operation requires individual assessment, with comprehensive documentation maintained for both individuals and regulatory authorities.

Direct marketing permitted under strict conditions

Personal data may be processed for direct marketing purposes when processing does not affect fundamental rights, excludes children and sensitive data, and targets individuals with prior contractual relationships or reasonable expectations of contact. Controllers must provide visible, free, and effective mechanisms in each communication allowing individuals to exercise their right to object.

Article 11 of the regulation permits segmentation and profiling for direct marketing provided these activities do not produce significant legal effects or seriously affect individuals' rights. Organizations must inform data subjects in advance about direct marketing uses through clear, accessible, simple language in Spanish, either through privacy policy notifications or processing disclosures.

The framework explicitly prohibits using legitimate interest for certain categories. Sensitive data processing faces prohibition except when strictly necessary for stated purposes, when balancing assessments guarantee individuals' rights, and when enhanced security measures apply. Special categories of data including ideology, religion, union membership, racial or ethnic origin, sexual life, and genetic or biometric information require explicit consent rather than legitimate interest justification.

Video surveillance faces audio recording ban

Organizations may implement video surveillance systems for security of persons, property, or facilities when installations are justified by specific needs such as crime prevention, access control, protection of critical facilities, or monitoring of vulnerable areas. The regulation strictly prohibits monitoring areas involving privacy violations including bathrooms, dressing rooms, nursing rooms, and dining rooms.

Article 15 establishes an absolute prohibition on audio recording in video surveillance systems under legitimate interest. Audio recording cannot be used for supervision or work performance monitoring purposes, nor to capture private or sensitive conversations. The regulation characterizes this practice as an illegitimate infringement of rights to privacy and freedom of expression.

Controllers must ensure video surveillance processing observes necessity and proportionality principles while including clear, accessible mechanisms for individuals to exercise rights. Processing must be communicated to data subjects in differentiated and accessible manner, which may be provided in layers but always in clear, simple Spanish.

Fraud prevention and internal communications allowed

Data processing may be carried out for prevention, detection, and reporting of fraud, money laundering, terrorist financing, and related crimes when limited to data strictly necessary to identify, analyze, or report suspicious transactions and irregular patterns. The regulation permits maintaining blocking lists and evidence for time strictly necessary to prevent recurrence and defend claims.

Personal data may be processed for internal communication between legal entities belonging to the same business group, provided existence of business relationships is accredited through corporate certifications, shareholder lists, or declarations signed by legal representatives. Communication within groups must be limited to personal data strictly necessary for legitimate internal activities including auditing, internal control, shared corporate services, and financial or administrative management.

Article 13 requires that controllers ensure individuals are informed in timely manner of how their data flows within business groups, including specific processing purposes, identity of controllers and processors involved, applicable security measures, and mechanisms for exercising rights. International transfers within business groups must comply with adequacy rules or adequate safeguards according to Ecuador's data protection legislation.

Profiling restrictions address automated decisions

The regulation prohibits using legitimate interest when fully automated profiling produces significant legal effects or could seriously affect individuals' rights. Exceptionally, profiling may be carried out for financial, banking, and insurance sectors when enhanced security measures are implemented, processing complies with transparency and minimization principles, mechanisms protect the right to object, and human review and supervision by competent authorities exists.

Article 16 establishes that legitimate interest cannot be applied to personal data of children and adolescents except when express justification links to the best interests of the child, as stated in balancing assessments or impact assessments with enhanced protection measures. Mass processing or reuse of personal data faces prohibition when new purposes are incompatible with original collection purposes, except for direct marketing as specified in Article 11.

Controllers must keep orderly, accessible, and up-to-date records of all balancing assessments conducted. Records must be available at all times to individuals and the Superintendency of Personal Data Protection. Organizations must review, modify, or update balancing assessments within one year from the last record, though controllers may revise assessments at any time.

Simplified assessments available for low-risk processing

The framework permits simplified balancing assessments for low-risk processing that is recurrent or homogeneous, using internal templates containing minimum parameters set forth in the regulation's annex. Each processing operation must comply with assessment obligations individually, with full documentation required demonstrating compliance with principles recognized in Ecuador's Organic Law on Personal Data Protection.

If the Superintendency determines that controllers applied simplified assessments to medium, high, or critical risk personal data processing to avoid comprehensive evaluation requirements, such conduct constitutes a serious infringement resulting in the highest penalty provided in current penalty regimes. Controllers must demonstrate through existing evidence that balancing test outcomes guarantee individuals' rights and freedoms at all times.

Article 7 requires assessments of whether processing could affect individuals' rights and freedoms as well as the legal system in force. Evaluations must be carried out according to provisions of Ecuador's Organic Law on Personal Data Protection, general regulations, and specialized regulations issued by the Superintendency.

Technical and organizational safeguards required

Controllers must detail actions or mechanisms that will be implemented to minimize or eliminate any risk identified in risk management analysis and impact assessments. Measures must be proportionate and effective, including technical approaches such as encryption, pseudonymization, multi-factor authentication, and access logging.

Organizational measures include clear internal policies and specific training for personnel with access to personal data. Administrative measures encompass data use control procedures, while legal measures involve confidentiality clauses with suppliers and data processing agreements that include specific measures. Information and transparency measures require clear information for individuals and facilitated exercise of rights in simple manner.

Article 9 specifies that controllers must keep balancing assessments available both physically and electronically for individuals and the Superintendency of Personal Data Protection. To comply with transparency principles while respecting confidential information, trade secrets, or business security, individual information must be communicated in clear, accessible, simple language in Spanish. Full versions must be available at all times to the Superintendency without restriction.

Information and communication technology security provisions

Processing of personal data for security of information and communication technology networks and systems may be carried out when controllers adopt technical controls and organizational measures according to identified risk results, following precepts in risk analysis and impact assessment regulations. Measures must aim at reducing probability and magnitude of impact on individuals from possible computer attacks on confidentiality, integrity, or availability.

Article 14 requires that security measures take into account privacy by design and by default paradigms, as well as Privacy Enhancing Technologies approaches. Cybersecurity protocols must include incident management policies, business continuity plans, physical and logical access controls, and technical security measures necessary for detection, prevention, and response.

The regulation mandates that all information on processing based on legitimate interest must be written in clear, accessible, simple language in Spanish so it can be easily understood by anyone without legal or technical knowledge. Information for individuals may be provided through layered schemes provided it remains clear throughout.

Implementation enters force immediately

The resolution enters into force upon signing on November 7, 2025, without prejudice to publication in Ecuador's Official Register. Organizations currently processing personal data based on legitimate interest face immediate obligations to conduct or update balancing assessments according to the new requirements.

The regulatory framework emerged from extensive technical work by the General Directorate for Personal Data Protection Regulation, with technical report INF-SPDP-IRD-2025-0067 signed on August 26, 2025, justifying relevance and necessity of issuing regulations to govern legitimate interest application and guide regulated entities regarding correct use.

Draft regulations underwent public consultation from August 27 to September 24, 2025, during which citizens, civil society organizations, and interested parties submitted comments and contributions. Following consultation, the General Directorate incorporated relevant observations through technical report INF-SPDP-IRD-2025-0091 of October 24, 2025, justifying modifications made to the draft regulation.

Marketing implications span digital advertising operations

Ecuador's legitimate interest framework creates significant compliance requirements for marketing technology platforms processing personal data of Ecuadorian residents. Organizations must now conduct comprehensive assessments before implementing behavioral advertising, customer segmentation, or analytics activities that rely on legitimate interest rather than explicit consent.

The prohibition on sensitive data processing under legitimate interest particularly affects health and wellness marketing, political advertising, and campaigns targeting religious or ethnic communities. Advertisers cannot claim legitimate interest when processing data about individuals' health conditions, political opinions, religious beliefs, or other special categories defined in Article 25 of Ecuador's Organic Law on Personal Data Protection.

Direct marketing operations face specific requirements balancing promotional activities with privacy protections. While the regulation permits legitimate interest for marketing communications to existing customers or individuals with reasonable expectations of contact, every campaign must include easily accessible opt-out mechanisms. Organizations must demonstrate that segmentation and profiling activities do not produce significant legal effects affecting individuals' rights.

Cross-border data transfers for marketing purposes receive scrutiny under the framework. Controllers must evaluate international transfers as part of balancing assessments, considering volume of data processed and existence of international communications. Organizations transferring data to countries lacking adequate protection levels must implement appropriate safeguards or demonstrate that transfers fall within specific circumstances permitted under Ecuador's data protection legislation.

The video surveillance restrictions affect retail environments and event marketing where organizations monitor customer behavior for analytics purposes. While security cameras may continue operating under legitimate interest, the absolute prohibition on audio recording prevents capturing customer conversations or employee interactions that marketers might have previously used for service improvement or training purposes.

Regional context shows Latin American privacy maturation

Ecuador's detailed legitimate interest guidance reflects broader privacy regulation developments across Latin America. Paraguay's Chamber of Deputies approved comprehensive data protection legislation on May 27, 2025, establishing legitimate interests as one of six legal bases for data processing alongside consent, legal obligations, contract execution, vital interests protection, and judicial proceedings.

The Ecuadorian framework adopts principles similar to Europe's General Data Protection Regulation while incorporating provisions specific to local regulatory requirements. Cambodia announced comprehensive data protection legislation on July 23, 2025, also including legitimate interest as a legal basis for processing with requirements for appropriate safeguards assessment by controllers.

European enforcement patterns demonstrate the compliance challenges organizations face when claiming legitimate interest. An Estonian court upheld on June 19, 2025, a data protection authority's order requiring a property owner to submit written assessment of legitimate interest for CCTV surveillance, confirming that supervisory authorities possess broad enforcement powers to order specific compliance measures.

The controversy over Meta's assertion of legitimate interest for using European personal data in artificial intelligence training demonstrates regulatory scrutiny of legitimate interest claims. A survey conducted in Germany during June 2025 found only seven percent of Meta users actually want their personal data used for AI training purposes, complicating the company's legal foundation under GDPR Article 6(1)(f).

Ecuador's Superintendency of Personal Data Protection was created through the Organic Law on Personal Data Protection as a control body with sanctioning powers, decentralized administration, legal personality, and administrative, technical, operational, and financial autonomy. The agency's highest authority is the Superintendent of Personal Data Protection, who possesses authority to issue general or technical regulations, criteria, and other acts necessary for exercising powers and guaranteeing exercise of the right to personal data protection.

Timeline

• 2021: Paraguay's data protection bill originates, beginning extensive committee review process
• May 27, 2025: Paraguay's Chamber of Deputies approves comprehensive data protection legislation including legitimate interest provisions
• June 5, 2025: Paraguay's president signs and forwards legislation to Senate for consideration
• June 19, 2025: Estonian court upholds data protection authority's power to require written legitimate interest assessments
• July 23, 2025: Cambodia announces comprehensive data protection law with legitimate interest as legal basis
• August 2, 2024: Ecuador's Superintendent approves Organic Statute of Organizational Management through Resolution SPDP-SPDP-2024-0001-R
• August 26, 2025: General Directorate for Personal Data Protection Regulation issues technical report INF-SPDP-IRD-2025-0067 justifying legitimate interest regulations
• August 27 to September 24, 2025: Public consultation period for draft legitimate interest regulations
• October 24, 2025: General Directorate incorporates public comments through technical report INF-SPDP-IRD-2025-0091
• November 7, 2025: Superintendent Fabrizio Peralta-Díaz signs Resolution SPDP-SPD-2025-0041-R establishing legitimate interest framework

Summary

Who: Ecuador's Superintendent of Personal Data Protection Fabrizio Peralta-Díaz issued regulations affecting all private sector data controllers operating within Ecuador's territory who claim legitimate interest as their legal basis for processing personal data. The regulations impact marketing technology platforms, direct marketing operations, video surveillance system operators, fraud prevention systems, business groups conducting internal communications, and any organization processing personal data of Ecuadorian residents based on legitimate interest rather than consent.

What: Resolution SPDP-SPD-2025-0041-R establishes comprehensive requirements for applying legitimate interest as a basis for legitimizing personal data processing within Ecuador. The regulations mandate prior written balancing assessments demonstrating that processing purposes are lawful, specific, real, proportional, and compatible with individuals' reasonable expectations. Organizations must evaluate nature of data collected, categories of individuals affected, processing context, data volumes, and international transfers while implementing technical, organizational, administrative, legal, and informational security measures. The framework permits legitimate interest for direct marketing under strict conditions, fraud prevention, internal business group communications, and information technology security, while prohibiting its use for sensitive data, children's data, fully automated profiling with significant effects, and audio recording in video surveillance.

When: The resolution was signed on November 7, 2025, in Santiago de Guayaquil and enters into force immediately upon signing without prejudice to publication in Ecuador's Official Register. Organizations currently processing data based on legitimate interest face immediate obligations to conduct or update balancing assessments according to new requirements. Draft regulations underwent public consultation from August 27 to September 24, 2025, before final adoption incorporating relevant public comments.

Where: The regulations apply to personal data processing activities conducted within the territory of the Republic of Ecuador by private sector entities. The framework affects organizations with physical presence in Ecuador as well as foreign companies processing data of Ecuadorian residents. Controllers located outside Ecuador but targeting Ecuadorian data subjects through goods or services offerings or behavioral monitoring must comply with the legitimate interest requirements when claiming this legal basis.

Why: Ecuador's Superintendency of Personal Data Protection issued the regulations to govern application and use of legitimate interest as a basis for legitimacy and guide regulated entities regarding correct use. The framework aims to ensure that personal data processing complies with legal provisions and that appropriate practices are adopted in data handling, protecting individuals' fundamental rights while allowing organizations to process data for legitimate business purposes. The regulations implement provisions from Ecuador's Organic Law on Personal Data Protection, which considers lawful any processing carried out to satisfy a legitimate interest of the data controller or a third party provided that the interests or fundamental rights of data subjects do not prevail.