If you’ve heard of the LGPD in Brazil but aren’t quite sure what it is or how it affects you—whether you’re an entrepreneur, a business owner, or a user—don’t worry. You’re not alone! The Lei Geral de Proteção de Dados (General Data Protection Law) is Brazil’s answer to increasing concerns about privacy and data protection.
It aims to give users more control over their personal information while ensuring businesses handle that data with care and transparency. But there’s a lot to unpack here. So, whether you’re just starting out in business or you’re a user wanting to understand your rights better, let me walk you through everything you need to know about the LGPD.
What Is the LGPD?
In simple terms, the LGPD (General Data Protection Law) is a regulation that governs how personal data is collected, processed, stored, and shared by companies and organizations in Brazil. Inspired by the General Data Protection Regulation (GDPR) in Europe, the LGPD brings Brazil’s data protection practices into the 21st century and ensures individual privacy rights are respected across digital platforms.
It applies to anyone (individuals or companies) who handles personal data, not just within Brazil but also outside the country if the data processing is related to offering goods or services to Brazilian residents.
Who Needs to Follow the LGPD?
Businesses that collect and process personal data, whether small startups, large corporations, or even public sector organizations, need to comply with the LGPD. This law applies to:
- Companies based in Brazil
- Foreign companies offering goods or services to Brazilian consumers
- Entities that process personal data belonging to Brazilian residents
So, if you’re an entrepreneur or a company owner, it’s crucial to understand how this law applies to you, whether you’re collecting customer information for marketing purposes, managing user accounts, or handling employee data.
Key Principles of the LGPD
To help you understand the foundation of the LGPD, let’s break down the core principles behind it. These principles shape how personal data should be handled and are key to ensuring that businesses respect privacy:
- Purpose Limitation: Data should only be collected for specific, clear, and legitimate purposes. You can’t just grab personal data and use it for anything you like.
- Data Minimization: You should only collect what’s necessary for your business purposes. Don’t ask for more data than you need.
- Transparency: Data subjects (aka customers or users) need to know exactly how their data will be used. You can’t surprise them later with new uses.
- Accuracy: Personal data must be accurate and kept up-to-date. If someone tells you their details have changed, you need to update them.
- Security: Companies must ensure personal data is kept safe from breaches, unauthorized access, or destruction.
- Accountability: Businesses need to be able to demonstrate that they are complying with the LGPD. This means having clear records and protocols for handling data.
How Does the LGPD Affect Businesses?
For entrepreneurs and companies, the LGPD brings about some significant changes in the way personal data should be handled. Let’s take a look at what your business needs to do to comply:
- Obtain Explicit Consent: When collecting personal data, you must obtain clear consent from users. This means no pre-checked boxes or vague language. People need to know exactly what their data is being used for, and they must agree to it before you collect anything. Importantly, they also need to know how to withdraw consent at any time.
- Implement Data Protection Measures: As a business, you must have appropriate security measures in place to protect personal data. This includes things like encrypting data, controlling access to sensitive information, and ensuring your systems are secure. Data breaches are taken very seriously under the LGPD, and businesses can face heavy fines if they’re found lacking in this area.
- Appoint a Data Protection Officer (DPO): Larger businesses, or those handling sensitive data, might need to appoint a Data Protection Officer (DPO). The DPO is responsible for overseeing how personal data is processed within the company and ensuring compliance with the law.
- Keep Detailed Records: Businesses must maintain clear and accessible records of how personal data is collected, used, and processed. This is crucial because, in case of an audit, you’ll need to show that your company is compliant with the LGPD.
- Notify Data Breaches: If a data breach occurs, you’ll need to notify both the National Data Protection Authority (ANPD) and any affected individuals within a set period. Prompt communication is crucial to ensure data subjects can take action to protect themselves (e.g., changing passwords, freezing accounts).
- Data Processing Agreements: If your business uses third-party services (such as cloud storage, marketing services, or payment processors) that handle personal data, you need to establish clear data processing agreements. These contracts should specify how the third party will handle the data in compliance with the LGPD.
What Are the Rights of Users Under the LGPD?
Now, let’s talk about the rights that the LGPD gives to individuals—the users whose data is being processed. Whether you’re a consumer or just a user of a platform, these rights give you greater control over your personal information.
- Right to Access: Users have the right to know what personal data is being processed about them and how it’s being used. As a business, you need to provide this information upon request.
- Right to Correction: If any personal data is inaccurate or incomplete, users can request that it be corrected.
- Right to Deletion: Individuals have the right to request that their data be deleted when it’s no longer necessary for the purpose it was collected for or when they withdraw their consent.
- Right to Portability: Users can ask to have their personal data transferred from one service provider to another. This is particularly useful for consumers who want to switch providers without losing their data.
- Right to Object: Users can object to their personal data being used for certain purposes (e.g., direct marketing).
- Right to Withdraw Consent: If users have given consent for their data to be processed, they can withdraw it at any time. This means you can’t keep using their data unless you have another legal reason for doing so.
- Right to Explanation: If a decision is made automatically based on their data (e.g., through profiling or machine learning), users have the right to know the logic behind these decisions.
Fines and Penalties for Non-Compliance
Failing to comply with the LGPD can result in some serious consequences for businesses. The National Data Protection Authority (ANPD) is responsible for enforcing the LGPD, and businesses found in violation of the law can face heavy fines. These fines can reach up to 2% of a company’s revenue in Brazil, with a cap of R$ 50 million per violation.
Beyond financial penalties, non-compliance can also damage a company’s reputation. Losing customers’ trust can be more harmful than any fine, especially in a world where data security is more important than ever.
Where data is constantly being shared, stored, and processed, the LGPD is crucial for protecting individual privacy and ensuring that businesses handle personal data responsibly. For entrepreneurs and companies, compliance with the LGPD is not just a legal requirement—it’s also an opportunity to build trust with your customers and strengthen your business’s reputation. For users, the LGPD empowers you with rights and control over your personal data, ensuring that your information is handled with care and transparency.
Understanding the LGPD and implementing the necessary practices for compliance will help businesses stay ahead of the curve and create a more secure and respectful online environment. As we continue to navigate the complexities of the digital world, the LGPD is an essential step toward ensuring privacy, security, and trust in Brazil’s data ecosystem.
Photo by cottonbro studio