With the LGPD (Brazilian General Data Protection Law) coming into effect in 2020, which regulates the processing of personal data, many companies may have been caught off guard.
Therefore, it's important to remember that the LGPD (Brazilian General Data Protection Law) applies to all companies that collect, process, store, and share personal data in Brazil, regardless of their size or revenue. In other words, small and medium-sized enterprises (SMEs) are also required to comply with the regulation. Although the law offers some flexibility for SMEs, it's important that they adapt to its provisions to avoid penalties.
Significant impacts of the LGPD for SMEs
SMEs are responsible for a large share of the revenue of all Brazilian companies. They are important for job creation, economic growth, reducing social inequalities, and innovation in the country. In other words, they are very important to the country's economic landscape.
Therefore, the LGPD (Brazilian General Data Protection Law) represents a series of impacts for SMEs, such as:
- Improve your reputation: Companies that comply with the LGPD (Brazilian General Data Protection Law) are seen as more trustworthy by customers and partners. This can lead to increased sales and customer loyalty.
- Efficiency improvement: The LGPD (Brazilian General Data Protection Law) can help SMEs improve the efficiency of their processes for collecting, processing, and storing personal data, leading to cost reduction and increased productivity.
- Preparing for the future: LGPD is a global trend being adopted by countries around the world. SMEs that comply with the law now will be prepared to deal with the changes to come.
- Highest market value: Companies that comply with the LGPD (Brazilian General Data Protection Law) may have a higher market value, as they are considered less risky by investors and potential buyers.
However, it is important to emphasize that compliance with the LGPD also implies costs, including the implementation of data security measures, employee training, and potential investments in technology. Therefore, SMEs need to balance these costs with the potential benefits of compliance. Ultimately, the LGPD should be seen as an opportunity to improve business practices and customer trust, rather than just a regulatory obligation.
Why SMEs should be concerned about the LGPD (Brazilian General Data Protection Law)
As mentioned earlier, even with the flexibilities regarding the LGPD (Brazilian General Data Protection Law), SMEs need to comply with the law. This is because they also process personal data in their daily operations, which places them directly under the jurisdiction of the LGPD.
Therefore, there are numerous reasons why small and medium-sized enterprises should be concerned about legislation:
- Significant fines
- reputation damage
- Customer protection
- Business Opportunities
Basic measures for small and medium-sized enterprises to comply with the LGPD (Brazilian General Data Protection Law).
Although the LGPD (Brazilian General Data Protection Law) is complex legislation, there are some measures that can be taken to move towards compliance. Some of these are:
- Ensure that the processing of personal data falls within one of the ten legal bases of the LGPD (Brazilian General Data Protection Law);
- Respect the principles of the LGPD (Brazilian General Data Protection Law);
- Clearly inform the data subject of the purpose for which the data will be processed;
- Establish a channel for receiving requests from the data subject, such as a specific email address;
- Respond to the data subject's requests and complaints in a clear and objective manner.
Small and medium-sized enterprises must adapt to the LGPD (Brazilian General Data Protection Law), a complex but essential process to protect the personal data of their customers and comply with legal obligations.
SMEs can take advantage of the flexibilities provided for in the law to make the adaptation process more accessible. However, it is important that companies follow the guidelines of the law to ensure the protection of their customers' data.
Here are some additional tips for SMEs that are adapting to the LGPD (Brazilian General Data Protection Law):
- Start the adaptation process as soon as possible: The company will have more time to implement the necessary measures if it starts adapting sooner.
- Keep up with your fitness requirements: LGPD is a dynamic law that can be changed at any time. SMEs should monitor changes to the law and implement the necessary measures to remain compliant.
- Count on the support of Privacy Tools: A leading privacy management tool in the Brazilian market and a pioneer in offering LGPD (Brazilian General Data Protection Law) solutions in Brazil.
