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A General Law on Data Protection (LGPD) came into force in Brazil in 2020, establishing a significant milestone in Brazilian legislation related to data protection. Its main objective is to ensure the fundamental rights of freedom and privacy of individuals, based on clear rules for the processing of data in general. 

In the current scenario, where technology plays a fundamental role in our lives, personal data protection has become an indispensable concern. The law aims to ensure that all of them are treated appropriately and with transparency in all practices.

It is worth highlighting that the LGPD applies to all companies that process personal data of Brazilian citizens, regardless of their size or area of ​​activity. And this also includes those who work with technology and frequently deal with large volumes of data in their daily activities.

Failure to comply with the LGPD results in significant consequences for companies, including fines, damage to reputation, suspension of personal data processing activities and, most importantly, loss of customer trust. Therefore, it is necessary to comply with the guidelines established by law and implement appropriate measures to guarantee the privacy of individuals.   

In this article, check out the impacts of the LGPD specifically for technology companies. We start by analyzing the main obligations imposed by law and the opportunities to develop a culture of data protection. Good reading!

Application of LGPD to technology companies

Technology companies play a crucial role in processing personal data and, therefore, it is essential to follow the guidelines provided for by the LGPD. Law enforcement is necessary to ensure the privacy of user data as well as establish a transparent and secure digital environment. 

It is important to observe appropriate processing obligations for personal data. That includes:

  • Use of them only for legitimate purposes;
  • Application of security measures to protect them against unauthorized access;
  • Adoption of practices to keep data only for as long as necessary;
  • Guarantee of data integrity and accuracy. 

Many technology companies share personal data with third parties, such as business partners, suppliers, service providers or advertisers. The law establishes that these data transfers must be carried out on the basis of legal grounds, such as the existence of a contract, compliance with legal obligations or user consent. Furthermore, the company is responsible for ensuring that third parties also comply with legal obligations.

The LGPD guarantees data subjects the rights in relation to their data, including the right to access, correction, deletion, revocation of consent and information about data processing. To the technology companies, who act as operators, must be prepared to support the controller in responding to user requests.

When complying with the law, businesses in this segment must invest in a culture of data protection, building a solid foundation for sustainable and responsible growth in the digital environment.

What are the positive impacts of LGPD on technology companies? 

Although compliance with the requirements of the General Data Protection Law (LGPD) may require efforts on the part of companies, it also brings a series of benefits and opportunities. By adopting such practices, technology companies will have competitive advantages to strengthen customer trust. 

Check out some of them: 

Strengthening customer trust

Compliance with the provisions of the LGPD demonstrates the a company's commitment to the protection of personal data. This helps build and strengthen trust, making it a competitive differentiator.

After all, customers are increasingly concerned about the privacy of their information, and by proving that the company cares about this, they will feel more confident in sharing it and using the services or products offered.

Increased brand reputation and image

Companies that adopt a proactive stance towards data protection tend to have better reputation before the market. Consumers increasingly choose companies that respect the privacy and security of their data, avoiding those that have a history of personal data breaches. Compliance with LGPD becomes synonymous with reliability and responsibility.

Competitive advantage

Compliance with LGPD can become a competitive advantage for technology companies. By ensuring that their processes are aligned with legal guidelines, they can differentiate themselves from the competition, attracting customers who value data privacy. 

Compliance, in practice, can be a determining element in the decision between companies that provide similar services or products.

Data security best practices

The LGPD encourages the implementation of data security measures. By adopting these practices, technology companies improve their ability to protect personal data against cyber threats and security breaches. This reduces the risk of damage to the company's reputation and avoids the negative consequences associated with data breaches.

LGPD and business expansion

A General Law of Data Protection represents an important milestone in the context of privacy and data protection in Brazil. The LGPD imposes on technology companies the need to adopt more rigorous practices to protect users' personal data. Therefore, it is necessary to review your internal processes, invest in data security and establish a culture of privacy.

At the same time, GDPR compliance brings significant benefits, such as strengthening customer trust, improved brand reputation, competitive advantage and stimulating innovation. Furthermore, it can also open doors for business expansion.

However, the journey towards GDPR compliance does not end with initial implementation. It is essential that technology companies continue to monitor and keep their processes updated. Data security is an ongoing process and requires a solid and robust data governance strategy.

Companies that invest in data protection are able to face challenges while taking advantage of opportunities that arise in the market, which is increasingly focused on data privacy.

Camila Baschirotto

Camila Baschirotto

Lawyer specialized in Digital Law and Data Protection, with an MBA in Tax Law, DPO (Data Protection Officer) Certification - EXIN, ISO/IEC 27701:2019 Internal Auditor Certification – Global Exemplar and Project Manager in the area of ​​Data Privacy Governance - Softplan.

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