A LGPD in Consumer Law It has brought many changes, and many companies are racing against time to adapt to them.
Everything related to the organization needs to be adapted to... data collection and processing Personal data from clients, regardless of the company's current situation.
More than just changing how companies handle this data, the new General Data Protection Law is changing consumer relations, and although it's new in Brazil, it has been a reality in Europe for quite some time.
It will also impact consumer rights and how organizations handle databases.
Companies that do not comply with this law may be penalized in different ways, depending on the type of infraction committed.
If you own a business and handle customer and lead information, know that it's time to... adapt it to this new reality, to avoid legal problems that could harm you.
With that in mind, in this article, we'll discuss changes in consumer relations and the penalties for violating the law. If you have any questions about this, keep reading.
Changes in consumer relations
The consolidation of the LGPD (Brazilian General Data Protection Law) has changed current consumer relations, despite the fact that the Consumer Protection Code already addressed some related issues.
An example of this is the right to basic access to information and the fact that the consumer needs to consent to the use of their data.
Since the popularization of the internet, there has been an evolution in the relationship between organizations and consumers, as in the case of a monitoring company and their clients and potential clients.
However, the Consumer Protection Code (CDC) and the Brazilian Internet Bill of Rights (Marco Civil da Internet) were no longer sufficient to guarantee the rights of both parties. Therefore, the LGPD (Brazilian General Data Protection Law) emerged to address the collection and processing of customer information.
It's a way to prevent companies and even governments from using this data without authorization. This data is so important that it has created new markets, and with that, certain habits have emerged.
Lists containing information began to be sold, and other systems were created for various purposes. Consumers then began to be bombarded with advertisements and content about things they had searched for online.
The LGPD (Brazilian General Data Protection Law) was created to protect people from this situation, but it will impact the consumer's life, since there will be an increase in the final price of the product.
This is a result of increased costs for companies, such as a tax and fiscal consultingwhich will require, for example, creating an exclusive channel for accessing data and training its professionals to handle restricted information.
Because it's still in the early stages, it's difficult to gauge the impact on product value, but it's a fact that this will happen, as brands need to deal with a higher degree of legal scrutiny than usual.
It's as if the company creates insurance for its customers' data, impacting the consumer experience. In other words, the consumer will pay more for products and services so that their information is protected.
Another change is that consumers will be able to give prior consent for the processing of their data. However, for this to be possible, the companies They must provide access to the following information:
● Right to petition against the controller;
● Knowing the purpose of the treatment;
● Form and duration of treatment;
● Responsibilities of the person who will carry out the treatment;
● Controller identification and contact information.
One of the access control companyFor example, you need to present all this information in clear and objective language.
Consent should also not be given automatically, such as through pre-selected text boxes or in navigations that assume automatic acceptance.
If the company has specific purposes for using this data, all of them must be displayed so that the data subject can choose which ones they agree with.
The data subject may petition the controller before the National Data Protection AuthorityTherefore, it is up to her to act with regulatory competence, overseeing and ensuring the functioning of the law.
The agency may also receive petitions when the owner does not have an unresolved or unaddressed complaint regarding their data.
This means that, firstly, the consumer must prove that their request was not resolved with the data controller and also by the Consumer Protection Agencies.
In other words, an office of tax advice or any other organization must have a customer service channel for this purpose. This is because the data subject can also turn to other institutions.
To standardize and monitor compliance with the law, an integration was made between the ANPD system and the Consumer Protection System.
The data subject can also confirm that their information is being processed by a company, and can access all of it, primarily to find out what types of information are being processed. data was collected and they are being treated.
It's a way to ensure that consumers can correct incomplete, outdated, or inaccurate data, as well as refuse its use.
If the data subject regrets providing their data, they can request cancellation or deletion, or request revocation at any time, in a free and easy manner.
Penalties for non-compliance
The LGPD (Brazilian General Data Protection Law) provides for administrative sanctions, such as fines, data reparation, and even criminal penalties.
It is the role of insurance companies and any others adapt to these changes. This is important because the law stipulates that the controller can be fined by the Consumer Protection Agency.
Each authority has its own regulations; furthermore, this law also stipulates that companies that violate the rights of the data subject may be held liable under current legislation.
In other words, here we enter the sanction that concerns the reparation of damages, according to what is established by articles 12 and 14 of the Consumer Protection Code.
These relate to compensation for damages caused to consumers who have had problems with products and services, even if these are not directly the company's fault.
There will be no such penalty for the company, as a Physical therapy clinic, storesFactories or any other type of organization must prove that they did not process the data of the person making the complaint.
It must also be proven that, even having processed this information, no act was committed that violates data protection legislation.
Furthermore, it can be proven that the damages are solely the fault of the data subject or third parties who may be involved.
In addition to fines and compensation for damages, the LGPD also provides for criminal sanctions in cases of conduct foreseen in articles 72 and 73.
Therefore, it is necessary that any company, such as a elementary school in São PauloPay attention to these codes.
Criminal sanctions apply when an organization prevents or hinders data subjects from accessing the data it holds, such as databases and record books.
The penalty in this case is imprisonment for 6 months to 1 year or a fine. Another factor that implies criminal sanction is failing to immediately correct any information about the consumer.
If there is any type of error in the information maintained in databases, records, or files that the controller is aware needs to be changed, the penalty is six months to one year of imprisonment or payment of a fine.
Despite all these sanctions and the importance of protecting consumer data, few companies are prepared. Unlike most of them... accounting firms who are already well acquainted with the new LGPD.
However, despite some businesses still being unprepared, it is necessary to reverse the situation and adapt to these new changes to avoid the implications of non-compliance.
Conclusion
We need see the LGPD as an opportunity to build a good relationship between companies and customers.
This is because if a customer complains about the handling of their data and communicates with the company about it, it's an opportunity that should be seized to prove that the company is concerned with always offering the best.
The client then notices a receptive and proactive attitude, which is very positive for any corporation. Therefore, it's not just about complying with a new law, but also about a way to update procedures.
Furthermore, we must remember that it follows the behavioral changes of the modern consumer, which means that adapting is being prepared to meet market expectations.
This text was originally developed by the blog team Investment Guide, where you can find hundreds of informative content about various segments.
