LGPD: why your company can no longer ignore data protection

The LGPD (Brazil's General Data Protection Law), enacted as Law No. 13,709/2018 and in force since September 2020, is a milestone in the protection of privacy and personal data in Brazil. Inspired by the European Union's General Data Protection Regulation (GDPR), the LGPD sets clear rules on how companies, public bodies and even individuals acting in a professional capacity must collect, store, process and share the data of natural persons.

The core purpose of the LGPD is to give data subjects more transparency, security and control over their own information. Personal data means any information that can identify a person, such as name, CPF (Brazilian individual taxpayer number), phone number, email address and home address, among others. The law also draws an important distinction for so-called sensitive data, such as data relating to racial or ethnic origin, religious beliefs, political opinions, health or sex life, which requires even greater care and protection from those who handle it.

The LGPD has a broad scope and covers any data processing operation carried out within Brazil or aimed at offering goods or services to individuals located in Brazil. This means that small, medium and large companies, regardless of their industry, are subject to the law. Even online-only businesses, such as e-commerce stores, must comply with its requirements or face administrative sanctions, which may include warnings, fines of up to 2% of annual revenue, and the blocking or even deletion of data processed in breach of the law.

Complying with the LGPD requires a series of practical and legal measures. These include mapping the data collected, reviewing contracts and privacy policies, defining the legal bases for data processing and adopting secure systems for storing data and controlling access to information. It is also important to appoint a data protection officer (DPO), who acts as the communication channel between the company, data subjects and the National Data Protection Authority (ANPD), the body responsible for overseeing and enforcing the law.

Beyond being a legal requirement, LGPD compliance has become a competitive advantage. Companies that show responsibility in handling data earn greater trust from customers and partners and are better prepared for digital transformations that demand ever greater attention to privacy and information security.

At a time when the use of data has become essential to business strategy, legal counsel plays a key role in guiding companies through the compliance process. Having the support of professionals who understand the legal and technical aspects of the LGPD is essential to ensure compliance, reduce risks and strengthen the institutional reputation. Therefore, more than an obligation, LGPD compliance should be seen as a strategic step toward the sustainable and ethical growth of any organization.