The LGPD, which stands for the General Personal Data Protection Act, became effective in September 2020, providing a legal structure for handling personal data in Brazil.
This law has played a key role in changing how businesses, including the legal field, manage the data of individuals they are connected with.
To gain a deeper understanding of its impact since it was enacted, we encourage you to read this.
An explanation of LGPD’s fundamentals
LGPD is built on a strong foundation and strives to safeguard citizens’ privacy, but its scope extends beyond that.
It also acts as a foundation for encouraging responsible innovation in companies, who need to find a harmony between safeguarding data and promoting innovation.
It sets out penalties for failure to comply with the law, outlining the responsibilities of organizations in data processing.
Main instructions for carrying out LGPD
LGPD is founded on various principles to effectively accomplish its goals.
Before an organization can use your data, you need to provide clear permission. Companies must clearly state how they will use the information. According to Serpro, not giving consent is uncommon.
Data processing can be done without the citizen’s permission in specific cases outlined in laws like the LGPD and the Access to Information Act.
Organizations must be transparent about how they collect, use, and store data according to this law. Data owners have the right to receive detailed information about how their data will be handled.
The legislation guarantees citizens several rights, such as the right to access their data, rectify inaccurate information, remove unnecessary data, and transfer their information.
It is crucial for companies to implement security measures to safeguard data from unauthorized access.
Institutions handling personal information of individuals had to make significant adjustments based on these standards.
Companies adjusting to LGPD regulations
Companies have had to adjust to legal requirements since LGPD was put into effect. Many businesses have invested in revising internal policies, enhancing security measures, and raising awareness about the significance of data protection.
The level of responsiveness varies, indicating different levels of maturity in comprehending and applying compliance practices, according to research conducted by RD Station consulting.
Why being in accordance with LGPD is crucial.
The Brazilian Agency reports a rise in the utilization of LGPD guidelines in court rulings, with the number of sentences referencing the legislation increasing from 665 to 1,206 between 2022 and 2023. This trend is prompting companies across various sectors to comply with the LGPD.
Staying updated on current legal developments, such as the recent adjustments to the LGPD by the ANPD in 2022, is crucial. One notable change was the relaxation of a rule pertaining to certain categories of small businesses, though it should be noted that this adjustment does not equate to an exemption.
In 2023, the ANPD started overseeing and penalizing unlawful actions in line with the LGPD, enhancing its involvement in upholding personal data protection regulations.
Although there is no recent review focused on fines, the first fine was implemented in July 2023.
LGPD: effects on businesses and safeguarding data
Applying LGPD can offer companies significant benefits, such as boosting consumer trust, which is on the rise.
In the financial sector, a study found that individuals with knowledge of the law were more self-assured about sharing their data in 2023 than in previous periods.
Customers understand the significance of privacy, and businesses that show dedication to safeguarding data can gain a competitive edge.
The implementation of the law could also offer additional benefits.
Minimizing harm to reputation
Complying with the LGPD greatly minimizes the chances of reputation harm. Businesses that adhere to the legislation’s requirements are at a lower risk of incurring hefty fines and damaging their corporate image in the eyes of the public.
Aligning global regulations
LGPD follows global data protection norms, making it easier to share information across borders and creating a secure setting for worldwide commerce.
Challenges encountered during the enactment of LGPD
While the LGPD offers significant benefits for companies, complying with it presents challenges, particularly for small and medium-sized businesses which may face significant financial impacts.
Internal reorganization for standards compliance involves reviewing current processes, implementing strong security measures, and educating staff. Legal software like HighQ can assist law firms with this process and safeguard data.
The requirement for prompt notification in case of security incidents, like a data breach, is crucial. This places significant pressure on companies to create and execute efficient response strategies.
Organizational culture can pose difficulties as it requires a shift in mindset and the promotion of a strong focus on privacy and data protection. Educating and involving employees is crucial to maintain compliance with LGPD.
Recent technological advancements and data security are crucial in various industries, including the legal sector, emphasizing the need for a dedicated law to ensure their proper integration.
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