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What is LGPD and How Can It Impact Digital Business?

In recent years, the term LGPD emerged and automatically many companies ended up having doubts and, even today, they do not know exactly what it refers to and how much it can add to the company and its business. Therefore, check out in this content the definition and impacts of the LGPD.


AFTER ALL, WHAT IS LGPD?

In fact, the acronym LGDP refers to the General Data Protection Law (Law No. 13.709/2018), which came into force in September 2020. Thus, it is a law that aims to regulate data processing personal data, and aims to strengthen all protection of the data subject's privacy, his freedom of expression, of information, as well as opinion and communication, the inviolability of intimacy, honor, image and economic and technological development. In other words, it is a law inspired by the GDPR, an acronym referring to the General Data Protection Regulation, which is nothing more than the European continent's legal regulation in relation to privacy and data protection.

Although the LGPD is something new for both companies and users, it came precisely to regulate the entire treatment of personal data due to the great abuses that were occurring with some companies in wanting to leverage their business illegally. This is because many of them realized that data is something very relevant and that this information collected within the digital from the processing of data could make profits grow much more and in a very efficient way.

However, this law is very beneficial for both parties, and came to act in favor of the fundamental rights of each individual and respect for private and personal information. Therefore, it is precisely due to the validity of the LGPD that the change of some companies in having changed their privacy policies became notorious, since one of the principles provided for by the law is the transparency and clarity of data collection. Another important point to emphasize is that the LGPD is not only valid for the digital environment, online, but also applies to offline.


WHO CAN ADAPT TO LGPD?

A big doubt when it comes to LGPD is about who can adapt to this law. However, the LGPD applies to any type of personal data processing operation carried out by either an individual or a legal entity - regardless of the size of your company and whether the purpose is philanthropic or profitable - even, whether carried out in Brazilian territory, or only with data and information collected in the national territory, or that has as a holder someone located in the national territory, both in the online and offline environment.

Therefore, individuals with economic purposes, legal entities governed by private law (associations, foundations, society, religious organizations, political parties, individual limited liability companies) and the Public Administration have a duty to comply with the LGPD, especially in observance of the legal principles and bases provided for therein.

In this way, if your company or even you, as a professional, takes notes regarding your customers or patients on some paper or printed reports, it is extremely important that an adaptation process takes place to comply with the law.


WHAT ARE THE IMPACTS OF LGPD ON DIGITAL?

As said before, the LGPD is beneficial not only for users, but also for organizations and its impact on digital is very noticeable and advantageous. Therefore, for those who are joining or even thinking about joining the online world, the legal bases of the law that are more related to the practices of the sector are defined by: consent, contracts and legitimate interest.

Consent refers to a clearer and unambiguous statement from an individual that he or she agrees to the use of their data for the purposes provided and proposed by the company. In the case of contracts, the data have the ability to be processed only to fulfill an obligation established in the contract or for there to be some validation of the start of validity of an agreement. Legitimate interest, on the other hand, is a more flexible legal basis. That is, it allows the use of data without obtaining consent.

However, it is worth mentioning that the level of compliance with the LGPD will totally depend on the policies that have already been adopted and established by the companies regarding the processing of data and personal information.

The most interesting thing is that this suitability gives companies the opportunity to expand and protect their business, in addition to showing respect for all the personal data of those who trusted and preferred their products and services. As a result, all companies are able to avoid many risks by finally adhering to LGPD, such as:

Fines;

  • Avoid leaving your venture vulnerable;

  • Some publicity of the infraction commissioned after an investigation and verification;

  • Bad reputation of the company within the market or to customers;

  • Gain in administrative and judicial proceedings, etc.

Another very relevant point that can make any company more satisfied to adapt to the LGPD is that the benefits are great and add a lot to leverage results, such as:

  • A great improvement regarding customer relationships through greater reliability and respect for their privacy;

  • There is an increase in legal certainty to be able to act through personal data, since the LGPD establishes the rules for the processing of personal data;

  • Marketing ends up being more valued and there is an increase in productivity.

The General Data Protection Law has all the potential to motivate major changes to organizations that process personal data. Therefore, do not dispense with being able to be within the law and guarantee all the benefits and avoid risks to your business. Seek right now to adapt to the LDPG, as this may bring many possibilities for businesses to be able to legally work with information in a cleaner and more appropriate way.

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