Federal Law on the Protection of Personal Data (LFPDPPP) — 2025 AI Provisions
Obligations Covered
Provisions (2)
Algorithmic Transparency and Disclosure #
Mexico's revised data protection law requires controllers to disclose in privacy notices the use of AI, automated decision-making systems, or algorithms — including the algorithmic logic, significance of processing, and potential consequences. This catches any AI system processing personal data of Mexican residents, even if the deployer is not Mexico-based.
Requirements
| Requirement | Details |
|---|---|
| Privacy notice disclosure | Controllers must disclose the use of AI, ADM systems, or algorithms for decisions affecting individuals |
| Algorithmic logic | Privacy notices must explain the algorithmic logic used in automated processing |
| Significance and consequences | Must inform data subjects of the significance and potential consequences of automated processing |
| Informed consent | Mandatory informed consent required for automated processing affecting individuals |
Penalties
| Violation | Fine |
|---|---|
| Administrative violations | 100–320,000 UMA (~$1,200–$3.9M USD) |
| Aggravating factors | Higher fines for repeat offenses, sensitive data, large-scale processing |
Human Oversight in Automated Decisions #
The revised LFPDPPP mandates human-in-the-loop processes for automated decision-making, particularly in high-risk scenarios. Combined with the right to object to ADM, this creates a dual obligation: deploy human oversight AND honor opt-out requests. Secondary regulations (pending) may further define high-risk thresholds.
Requirements
| Requirement | Details |
|---|---|
| Human-in-the-loop | Mandatory human oversight for automated decision-making processes, especially high-risk cases |
| Right to object | Individuals have an explicit right to object to processing via automated decision-making systems |
| Impact assessments | High-risk ADM systems require impact assessments evaluating effects on rights, identifying safeguards, and implementing mitigations |
| Internal safeguards | Controllers must establish internal oversight mechanisms for agentic or semi-autonomous systems to prevent harms including discrimination |
Penalties
| Violation | Fine |
|---|---|
| Administrative violations | 100–320,000 UMA (~$1,200–$3.9M USD) |