LGPD goes into effect — how important is it and what can we expect?

Every day, there are countless times we share our data on the internet. Either when we put our login and password for email or our social networks, when we send a message, when we make a transaction through internet banking or even when we like or share a post on social networks.

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With the ease brought by technologies, all our information is on the network and they can be easily accessed by anyone or any company that also has the same resources – regardless of their intentions. Therefore, the security and protection of these elements are the only guarantees we have and they are fundamental for a safe and responsible presence in the digital environment.

For a long time, this issue suffered from a real legal “limbo”, since there was no legislation in the country that could define rules on the use of personal data. However, in August, the General Data Protection Law, known by its acronym, the LGPD, came into force.

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The Law 15.709, approved in August 2018 and modified in 2020, it should have taken effect a year later; it did not happen, since, like many things, the pandemic had impacts and made it difficult to materialize. The LGPD agrees on several principles and establishes mechanisms to ensure the security of users’ data, especially in relation to the right to privacy and control of their information.

Sanctions are also provided for in cases of non-compliance of the provisions of the legislation, such as blocks, warnings and fines, which can reach up to 2% of the revenue of the legal entity or conglomerate of which the company is a part, with a limit of R$ 40 millions.

We are still at the beginning of a journey that promises to have many challenges. The first of them is to ensure the full implementation of the LGPD devices by the companies.

Data leakage in Poupatempo: many agencies and companies are not yet prepared to LGPD (Image: Playback/DefCon Lab)

A survey by ICTS Protiviti, carried out in 2020, points out that 72% of Brazilian companies are not prepared for the new data privacy rules. With 709 companies interviewed, of all sizes and segments and in different regions of the country, the survey highlighted that % of companies with more than 84 employees said they intend to hire outsourced services to assist in the adequacy of the law.

Another point is that only 19, 8% of the financial sector is ready for the requirements of the law, with a performance twice as high as the other sectors of the Brazilian economy, whose national average was 15, two%. The services sector was in second position, with 17, 6%, and retail, in turn, is in third place, with 17,9% of companies adapted and within what is required by regulation.

The health and hospital sector occupies the last position, with only 8.7% of companies in compliance. Needing more time to adapt to the legislation, about 34, 8% of the organizations say it will take from six months to a year to be fully ready.

Although data privacy is not part of the priority focus of action of many organizations, all must meet the requirements brought forward by the LGPD. And, in the case of startups, micro and small companies, the difficulties will involve even higher costs with technological adjustments, changes in practices and the creation of new functions for the teams.

It will be essential to understand the existing challenges and outline alternatives to overcome them. Organizations first need to go through a major transformation that starts in the organizational culture to the conception and execution of their products and services. This will be fundamental for what comes next, that is, the review of processes, the adoption of new technologies and security and transparency protocols.

There is no doubt that we have reasons to celebrate the beginning of the LGPD’s validity. Legislation is a fundamental framework for guaranteeing the right and security of individuals in the digital environment.

*Article produced by a columnist exclusively for Canaltech. The text may contain opinions and analyzes that do not necessarily reflect Canaltech’s view on the subject.

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