LGPD: Greater Security for Data Subjects and Companies

How Your Company Can Benefit from the General Data Protection Law (LGPD), Designed to Ensure Consumer Privacy and Security

The General Data Protection Law (LGPD) was enacted to protect citizens’ privacy and regulate the use of personal data by companies, both online and offline. The main objective of the new law is to ensure that this data is not misused.

Since September 2020, when the law took effect, any citizen may ask private companies or public agencies how their personal information and data—such as their CPF number, full name, phone number, and address—are handled. 

In addition to protecting citizens, the law also regulates the transparency of information and free access by certain companies to ensure and safeguard the accountability of individuals.

Why was the LGPD created?

Nowadays, anyone with a computer or cell phone generates and provides a wealth of data about their life that can be stored for various purposes, such as research, ad targeting, and monitoring. 

The growth in global data production and people’s increasing exposure on social media have created an opportunity for companies to use users’ personal information in various types of analyses without their consent. 

The lack of regulation was responsible for cases such as that of Cambridge Analytica, in which Facebook user data was used during the 2016 U.S. presidential campaign.

Thanks to the LGPD, data subjects have the right to: access and authorize the use of their data; correct incomplete data; delete unnecessary data; ensure data portability; and enjoy other benefits.

What are the LGPD laws like in other countries?

Brazil's LGPD follows a very similar approach to the General Data Protection Regulation (GDPR), which was adopted by the European Union in 2016 and has been in effect since May 2018.

In addition to European countries and Brazil, Australia, South Africa, Turkey, and Mexico are examples of nations that have their own legislation. Argentina, Japan, and New Zealand, on the other hand, are in compliance with the GDPR. 

Although they have not yet been officially enacted, India, Chile, Paraguay, Russia, and China also have some laws protecting personal data. 

As you can see, regulating the use of personal data is of the utmost importance and, therefore, a path of no return.

What will change for businesses once the LGPD takes effect?

Compliance with the LGPD has not been an easy task for companies. Although the government has granted a two-year grace period for this process, many companies have not yet been able to meet the requirements of the new law and view its implementation as yet another obstacle.

However, it is important to keep in mind that the new law does not benefit only citizens. The regulation can also help improve your business’s image, in addition to establishing a stronger, more trusting relationship with your customers. 

When you make it clear that your company believes in and complies with the LGPD, it stands out and gains credibility in the market. In addition, your relationships with customers and business partners are strengthened, as they view your business as serious and socially responsible. Future contracts may be secured precisely because of this stance, especially when compared to so many other companies that have not yet realized the importance of this law. 

By complying with the LGPD, you can avoid damaging your company’s reputation, as well as a range of penalties, including the suspension of your database for a period of six months, administrative and judicial proceedings, and fines of up to 2% of your gross revenue or capped at R$ 50 million per violation.

What steps should be taken to comply with the LGPD?

First, the company needs to review the processes involved in collecting and storing personal data. Existing data should be reviewed and classified by purpose. It is also important to determine whether the data was collected with consent and whether it is stored securely.

Employees who handle personal and customer data must ensure the confidentiality of that information by following best practices in information security. Establishing a privacy policy for the company is also essential. This makes it possible to explain to customers how their data will be used and stored. 

We at 4KST, which specializes in credit consulting and analysis—and, consequently, in the processing of personal data—strictly comply with the requirements of the LGPD. If your company needs this type of service, we guarantee complete security for your business and your customers.

To learn more about the solutions we offer, please contact us and keep following us on social media. 

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