The Value Group held an event in partnership with the Gestão da Crise Portal on a very current and important topic: the General Data Protection Law (LGPD). For this, we conducted a survey with our clients and partners to identify the most common doubts about this subject, and then we brought in experts to address them.
Our specialists are from VaR Business Beyond, represented by Ronaldo Sirosse and Rodolfo Spigai. Our guests answered seven questions, which we list for you below:
>> Don’t have time or the inclination to read? Click here and listen to our podcast “LGPD in a Nutshell“.
Benefits
What are the benefits of LGPD for businesses?
This differentiation can even provide exclusivity in the market, especially if you are one of the few companies in your segment that is compliant with the LGPD. By aligning your product with customer data protection requirements, you position yourself as a leader in the field.
Once you stand out and gain market share, how will your competitors catch up to you? This compliance triggers an avalanche effect, enabling you to dominate the market in a short period.
LGPD for Different Types of Companies
Which business activities or sectors need to comply with LGPD? Are all companies, regardless of size, subject to the law?
The Brazilian law addresses personal data of individuals, whether identified or identifiable. Therefore, if you possess any data that can identify a specific person, such as an email address, it is considered identifiable data.
Rarely does a business only deal with a CNPJ (company tax ID), as there is often data linked to individuals, such as financial or commercial managers. Therefore, all companies need to comply with LGPD.
Does LGPD treatment differ for a small business and a multinational, or are the compliance requirements the same?
The General Data Protection Law does differentiate between companies based on their size: micro and small businesses must comply, but they will receive differential treatment, which is yet to be defined by the national authority. However, this does not mean they are exempt from meeting the law’s essential requirements.
Larger companies, on the other hand, will be subject to full scope compliance, including the subjective aspects of the law, which involve technical and administrative security measures. These distinctions will continue to be refined, but it is recommended that companies of all sizes, types, and industries treat LGPD compliance as a risk analysis.
The Role of the DPO
A new position emerging in companies. Can it be someone who already has other responsibilities?
DPO (Data Protection Officer) is an imported term; here, we use the term “encarregado” (responsible or manager). It is important to clarify that the encarregado is not the person responsible for the data nor the decision-maker, but rather the controller. The encarregado is essentially a facilitator, communicator, and manager.
They are the person who will handle external demands, whether from regulatory bodies or data subjects, and manage internal processes. The encarregado is a key facilitator and can be an existing employee within the company, with one important recommendation: they should not be mixed with the role of the controller.
While the encarregado might seem to have the most responsibility for data protection, the reality is that the true responsibility lies with the controller. Once the role of controller is assumed, they effectively become the person accountable for data protection.
Do I need to pay an additional salary for this role? What has been happening and what are the recommendations?
It has not been common to see an increase in salary for this role. However, since this is a position that requires at least a managerial level, many companies are assigning this responsibility to someone with that level of expertise. That said, some companies establish a committee instead of assigning the role to a single person.
The most important aspect is that the person responsible for this role is at a managerial level. Any failure in communication or execution could result in liability for the company.
Oversight and Recommendations
Who oversees LGPD compliance, and when will sanctions be applied?
Anyone can oversee LGPD compliance, including PROCON, regulatory agencies, the Central Bank, the Public Prosecutor’s Office, and even the police. Sanctions were initially expected to start being applied in August 2021, but Brazilian law includes something called the “dialogue of sources.”
This means that while the official enforcement timeline may be in flux, sanctions are already being applied in practice. For instance, on platforms like “Reclame Aqui,” there are already complaints related to LGPD, including labor-related issues.
Tips and Recommendations for Those Who Haven’t Complied Yet. Where to Start?
For those who haven’t started compliance yet, one thing is certain: revenue will drop. There’s also the risk of being reported by competitors, which will incur additional costs. Therefore, the recommendation is to get informed.
Understand what the law entails, seek more information, and find specialized services. There are plenty of free resources available to help you understand the law and avoid being misled. Do not start with anything that could put your business at risk.