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Dear business owner, this text is for you.
Today we celebrate International Data Protection Day.
Privacy for Businesses: By now, I believe you've heard of the General Data Protection Law (LGPD), legislation that organizes the processing of personal data, establishes principles, foundations, and hypotheses that justify processing, and you should know that non-compliance with the rules set forth in the law entails consequences ranging from a complaint to the National Data Protection Authority (ANPD), which can lead to an administrative process by the ANPD with the possibility of sanctions.
Not to mention the potential exposure on websites like "Reclame Aqui" and "Cadê meu dados?", without even mentioning administrative and judicial proceedings. So the question remains, wouldn't it be simpler and more beneficial to comply with the law?
Privacy for Businesses: Why Should the LGPD Be Taken Seriously?
Well, to me the answer seems obvious, but statistics show that there's a long way to go before suitable companies become the majority. I'm not going to talk about research and statistics here; my goal is to offer some food for thought for you, the business owner.
Companies have an indispensable role in the context of personal data protection; respect for the law and data subjects strengthens the ecosystem and naturally favors market self-regulation. However, this does not mean that the company's business model must change drastically or that the application of the General Data Protection Law will make data processing impossible and, consequently, hinder or prevent companies from operating.
This is not a fashionable death sentence: "get rid of the data," but an invitation to organize and manage this personal data in the best way possible.
Compliance with the LGPD: A Necessity for Companies
If you have attended an event or lecture making a similar claim, rest assured, the ANPD (National Data Protection Authority) has repeatedly stated that its interest is not in applying sanctions and fines indiscriminately.
At first glance, this may seem too good to be true for those who are not compliant and questionable for professionals who advocate for the law and work to bring companies into compliance, but I believe a middle ground will prevail.
Enough time has passed for companies to adapt, the ANPD (National Data Protection Authority) has been calm and working on its regulatory agenda, but have you stopped to think about when citizens will start to learn about the law and the importance of their data?
Well, something like what happened with the Consumer Protection Code (CDC) will possibly repeat itself; perhaps numerous lawsuits will be filed, and this is already happening, but it could be on a much larger scale. Will your company be prepared?
Privacy for Businesses: Do Small Businesses Also Need to Adapt?
Small businesses may initially believe that adapting their operations to the law is unfeasible, either due to a lack of management—since adapting a company inevitably requires prior organization, and often the company hasn't prioritized this yet—or due to a lack of resources to make the necessary investments, or due to a lack of interest, knowledge, etc.
The good news is that it takes a lot more goodwill than anything else, let me explain. Our National Data Protection Authority (ANPD) has made available several documents that can help and even promote the necessary basic adjustments for small businesses – the so-called Small Data Processing Agents.
To check if your company can benefit from the flexibility, simply verify if your company fits the definition of a Small Data Processing Agent on the ANPD website.
However, even companies that do not fall into the aforementioned category can benefit from the available guidance and guidelines, following the same logic to adapt a larger operation and broaden their understanding of the legislation and the criteria for achieving compliance.
Larger companies should hire qualified professionals, even if only for one-off consulting projects, if they cannot invest in permanent hiring.
Privacy for Businesses: The Role of the Data Protection Officer in Compliance
One cannot ignore the advantage of hiring a manager; besides being a legal obligation for companies that are not classified as "Small-Scale Treatment Agents," this professional will guide, organize, and advise the company. They do not have decision-making power, but their suggestions should be considered with the understanding that they are someone who knows what they are suggesting.
This will certainly be someone you can count on for training and any security incidents.
Privacy for Businesses: Impacts of Security Incidents
Security incidents, such as leaks and unauthorized access, can cause severe damage to small and medium-sized businesses, considering their limited resources for prevention and recovery. Having a well-organized and knowledgeable team will make all the difference in a critical situation. Response time is crucial.
A company's conduct in the face of an incident will have various repercussions. Beyond the exposure, the breach of customer trust, and damage to reputation and image, there are also the sanctions stipulated in the LGPD (Brazilian General Data Protection Law), and high legal costs. While some may consider the investment in compliance high, they cannot imagine how high the investment is to recover a damaged, discredited image; often, this is not even possible.
Companies that implement tools and techniques aimed at promoting a safe environment and legal compliance are viewed differently in the event of an incident; therefore, it is important to invest in information security, technology, and training.
It's no secret that the employee is the weakest link when it comes to incidents, and this is not only due to negligence, but often simply due to misinformation. This responsibility falls to the controller, that is, the company, regardless of how they deliver that guidance.
Creating specific documents, implementing diverse policies, and providing constant guidance are the best ways to avoid harm.
Data protection is becoming increasingly important in our information society, and more and more people are seeking to understand their rights and the importance of their personal data.
By understanding their own value, companies will increasingly need to promote privacy and data protection to ensure customer trust, thereby strengthening their market reputation and reducing financial risks related to potential sanctions and fines.
The LGPD (Brazilian General Data Protection Law) can also highlight your company, encourage and promote business, because companies that have or wish to have relationships and business with large companies or with the State cannot fail to comply with their legal obligations, under penalty of not even being competitive.
Furthermore, data protection can and should be a competitive differentiator, demonstrating that a company that values and respects the rights of data subjects is a company worth having around.
Furthermore, compliance with the LGPD (Brazilian General Data Protection Law) requires companies to invest in creating an organizational culture focused on data protection. This includes training, robust internal policies, and the use of technologies that mitigate risks.
Implementing basic measures, such as raising employee awareness, and developing strategies and activities, including days like today, can make all the difference between a secure company and one that is more vulnerable.
Information technology is an indispensable element when we talk about data security; constant monitoring and updating of systems is crucial.
Privacy for Businesses: Organizational Culture and Data Protection
Compliance with the LGPD (Brazilian General Data Protection Law) is not just a legal matter, but also a competitive strategy. Companies that prioritize data protection strengthen their market image and ensure greater security for themselves, their customers, and partners.
However, prevention must be ongoing, with frequent reviews and updates of the security measures adopted, allowing organizations to be prepared to respond quickly and effectively to potential incidents, as well as to answer questions from data subjects when exercising their rights under the law.
The protection of personal data is a reality; there's no point in ignoring it and pretending "it won't affect us." We're talking about a law, and as such, it must be complied with by individuals and legal entities, whether public or private, of all sizes and sectors, especially in the current scenario where digitization and the massive use of information permeate virtually all business activities.
Therefore, the LGPD (Brazilian General Data Protection Law) is more than a legal requirement; remaining compliant represents a commitment to the future of the company and to the data of its customers, suppliers, and employees.
In short, adopting best practices and aligning with the requirements of the LGPD (Brazilian General Data Protection Law) not only protects companies from sanctions, but also safeguards their image, strengthens their credibility, and consequently, brings longevity to their business.
By strengthening your reputation, you ensure more than just a safe environment for the sustainable development of your business; you choose to maintain your customer's trust and develop a relationship of confidence that unfolds over time.
Did you enjoy this content? Check out other articles from this initiative. Privacy Week That might interest you:
Privacy for the State: The role of public policies in data protection.
