Lei Geral de Proteção de Dados Pessoais (LGPD): Brazil’s data protection law explained

Brazil’s Lei Geral de Proteção de Dados (LGPD) is a call for businesses to build trust through responsible data handling. Marketers must navigate its rules carefully to maintain compliance and protect their reputation. From ensuring transparency in data collection to responding promptly to consent withdrawals, getting the hang of LGPD is essential for any data-driven business in Brazil.

The Lei Geral de Proteção de Dados (LGPD) is Brazil’s data protection law. It’s shaping how businesses handle personal information. And marketers must understand it. Because in a world where trust is currency, mishandling data isn’t just a legal risk – it’s a reputational one. One data breach or misuse of customer information can erode years of brand loyalty.

Customers are more conscious than ever of where their data goes and who’s using it. With AI and advanced targeting tools, we can understand our audiences like never before, but with great power comes great responsibility. The LGPD gives individuals the right to control their personal data – from what companies collect to how it’s used. For businesses, this means adopting smarter, more transparent data practices or risking penalties and loss of consumer trust.

Ready to learn how to navigate Brazil’s data protection law and keep your marketing efforts compliant? Let’s dive in.

What is Lei Geral de Proteção de Dados (LGPD)?

The LGPD is Brazil’s data protection law, in effect since September 18, 2020. It consolidated over 40 different statutes into one unified framework, creating strict rules for how businesses handle personal data.

For marketers, this means being transparent about data collection practices and ensuring customer consent before using their data for personalized campaigns. The law impacts everything from lead generation to data sharing with third-party partners, and failing to comply can result in hefty fines and reputational damage.

In short, LGPD requires businesses to prioritize data privacy in their marketing strategies to build trust and avoid penalties.

LGPD governs how personal data is collected, stored, and used in Brazil.
It empowers individuals with control over their personal information.
It affects all aspects of data-driven marketing, from targeted ads to customer relationship management.

Examples of LGPD applications

Marketing

For marketers, the LGPD requires transparency in how customer data is collected and used. This affects everything from personalized email campaigns to retargeting ads. Before collecting any data, such as email addresses or browsing habits, marketers must obtain explicit consent from users.

For example, if you’re running a lead-generation campaign, forms need to clearly explain why data is being collected and how it will be used. Additionally, users must have the option to opt-out at any time, and businesses are required to respond promptly to requests to delete or access personal data.

E-commerce

E-commerce platforms process a significant amount of personal data, from purchase histories to payment details. Under the LGPD, this data must be handled carefully, and consent must be explicitly obtained before processing it for marketing purposes like personalized recommendations or abandoned cart emails.

Additionally, sharing customer data with third-party vendors or payment processors requires clear and informed consent from users.

Analytics

Data-driven marketing thrives on analytics, but under the LGPD, the collection and analysis of user data must be more cautious. Tools like Google Analytics, for instance, must be configured to anonymize IP addresses, and users should be informed about the data being tracked.

Consent banners or cookie notifications must allow users to opt-out of non-essential tracking, and businesses must be ready to provide transparency on how that data is being used.

LGPD enforcement and compliance

The enforcement of the LGPD is overseen by the Autoridade Nacional de Proteção de Dados (ANPD), Brazil’s national data protection authority. The ANPD has the authority to issue fines, enforce compliance, and investigate data breaches.

Beyond financial penalties, the ANPD may impose corrective measures, such as mandating data deletion, limiting data processing activities, or issuing public warnings. These actions can severely disrupt business operations if compliance isn’t met promptly.

Organizations that handle personal data in Brazil must take proactive steps to ensure compliance with the LGPD. This includes developing a clear privacy policy, obtaining explicit consent from individuals, and conducting regular data protection assessments.

By adhering to the LGPD’s guidelines, companies can protect the personal data of their users while avoiding costly non-compliance penalties. But what specific rights do individuals have under LGPD, and how do these impact businesses? Understanding these rights is critical for building compliant data practices.

Rights of data subjects under LGPD

The LGPD grants individuals nine fundamental rights regarding their personal data, aiming to give users control over how their data is collected, stored, and used:

Confirmation of processing
Individuals have the right to confirm whether their personal data is being processed by an organization.

Access to data
Data subjects can request access to their personal data that is being processed, allowing them to understand what information is held.

Correction of data
Individuals can request the correction of incomplete, inaccurate, or outdated personal data.

Anonymization, blocking, or deletion
Data subjects can request the anonymization, blocking, or deletion of unnecessary or excessive data, or data processed in violation of the LGPD.

Data portability
Individuals have the right to request that their personal data be transferred to another service provider or product supplier, facilitating easier movement between services.

Deletion of personal data
Data subjects can request the deletion of their personal data that was processed based on their consent, except in cases where retention is required by law.

Information on shared use
Individuals are entitled to receive information about public and private entities with which their data has been shared.

Information on consent
Data subjects must be informed about their right not to provide consent for data processing and the consequences of refusal.

Revocation of consent
Individuals can revoke consent for the processing of their personal data at any time, ensuring they retain control over their information.

These rights closely align with those granted under the European GDPR, providing Brazilian citizens with strong protections and control over their personal information.

Types of data covered by LGPD

Personal data

Under Brazil’s General Data Protection Law (LGPD), personal data is defined as any information related to an identified or identifiable natural person. This broad definition encompasses various types of information that can directly or indirectly identify an individual, including but not limited to:

Identifying information: Names, surnames, and initials.
Contact details: Email addresses, phone numbers, and physical addresses.
Identifiers: ID numbers (e.g., CPF, RG), geolocation data, and social media posts.
Opinions and views: Personal opinions expressed online or in documents.
Computer-generated information: IP addresses, cookie data, and advertising identifiers.

Sensitive personal data

The LGPD also categorizes certain types of personal data as sensitive, which require additional protection due to their nature. Sensitive personal data includes:

Racial or ethnic origin
Religious beliefs
Political opinions
Union membership
Health or sexual life data
Genetic and biometric data

Processing such data requires heightened security measures. Organizations must ensure this information has stronger protection levels due to its sensitivity.

What are the requirements for setting cookies under the LGPD?

The requirements for setting cookies under Brazil’s General Data Protection Law (LGPD) are primarily centered around obtaining valid consent from users. Here are the key requirements:

Freely given
Consent must be provided voluntarily, meaning users should have a genuine choice to accept or refuse cookies without facing negative consequences. Forcing users to accept cookies to access a website is not compliant with LGPD.

Informed
Users must receive clear and comprehensive information about the types of cookies being used, their purposes, retention periods, and any third parties with whom their data may be shared. This information should be presented in an easily understandable manner.

Specific and unambiguous
Consent must be explicit and refer to specific purposes for data processing. General consent for all types of cookies is not permissible; users should be able to provide separate consents for different categories of cookies (e.g., analytics vs. marketing).

Written expression
Consent should be documented, whether through written means or electronic formats, such as a cookie banner on the website. Organizations must maintain records of consent to demonstrate compliance if requested by authorities.

Easily withdrawn
Users must have the ability to revoke their consent at any time easily. The process for withdrawal should be straightforward and clearly communicated.

LGPD compliance requirements for organizations

For businesses and organizations, ensuring compliance with the LGPD means adopting several important practices:

Legitimate purpose
Data must be processed for legitimate, specific, and clearly communicated purposes.

Consent
Most processing activities require explicit consent from the individual, which must be informed and unambiguous. This is similar to GDPR, where companies must obtain informed consent.

Data minimization
Organizations are required to collect only the data necessary for the intended purpose and avoid excessive data collection.

Data security measures
Companies must adopt security measures to protect personal data against unauthorized access or breaches.

International data transfers
For businesses transferring data outside of Brazil, the LGPD requires that the destination country offers an adequate level of data protection or that suitable safeguards, such as contractual clauses, are in place.

Data Protection Officer (DPO)
The law generally suggests that organizations meeting certain criteria—such as processing large volumes of sensitive data or personal data—should appoint a DPO. Small businesses with minimal data processing activities may not be required to appoint a DPO, but consulting legal experts is advisable to confirm obligations.

What are the requirements for cookie banners under the LGPD?

To comply with the LGPD, cookie banners should include:

A button to accept cookies.
A button to reject cookies, allowing users to opt-out easily.
Information detailing why cookies are used and whether data will be shared with third parties.
A link to the website’s cookie policy for further details on cookie usage.

Compliance can be complex, but setting up an LGPD-compliant cookie banner doesn’t have to be. Cookie Information’s Consent Management Platform offers fully customizable cookie banners that align with LGPD requirements, ensuring you collect and manage consents transparently.

What are the consequences of non-compliance with the LGDP?

Breaking LGPD rules can lead to heavy fines and legal issues. Fines could be up to 2% of a company’s revenue in Brazil, capped at approximately R$50 million per breach.

But, non-compliance with LGPD doesn’t just cost money; it costs trust. Failing to meet standards can severely harm a company’s reputation. Consumers value privacy and expect businesses to protect it.

A breach can lead to loss of customer trust and brand loyalty. In today’s connected world, news of breaches spreads fast. Negative publicity can reach a global audience in minutes and even impact market relations overseas.

How does the LGPD compare to the GDPR?

The LGPD was heavily influenced by the European Union’s General Data Protection Regulation (GDPR), which serves as a global benchmark for privacy laws. While both laws share similar principles regarding personal data protection, notable differences exist in areas such as legal bases for processing and penalties for non-compliance.

Similarities between the LGPD and the GDPR

Scope
Both laws apply to any entity processing personal data within their jurisdictions, regardless of where the processing occurs. They protect data related to identified or identifiable individuals and emphasize the importance of safeguarding sensitive personal data.

Rights of data subjects
Each law grants individuals rights concerning their personal data, including the right to access, correct, delete, and revoke consent. The LGPD has nine rights, while the GDPR lists eight, with some rights being more explicitly defined in the LGPD.

Data Protection Officers (DPO)
Both regulations require organizations to appoint a DPO, although the LGPD is less specific about when this is necessary compared to the GDPR.

Differences between the LGPD and the GDPR

Legal bases for processing
The GDPR outlines six lawful bases for data processing, whereas the LGPD provides ten, including more specific provisions such as protecting health and conducting research studies. This makes the LGPD’s framework more detailed in certain areas.

Breach notification
Under the GDPR, organizations must report data breaches within 72 hours of discovery. In contrast, the LGPD does not specify a strict timeline, stating only that breaches must be reported “within a reasonable time period” as determined by its national authority.

Principles of data processing
The GDPR outlines six principles, while the LGPD specifies ten, which include additional principles like “free access” and “nondiscrimination.” This reflects a broader approach to data handling in the LGPD.

Sanctions for non-compliance
Penalties under the GDPR can reach up to 4% of global revenue or €20 million, whichever is higher. The LGPD imposes lower fines, capped at 2% of a company’s revenue in Brazil, with a maximum fine of 50 million reais.

Focus on public interest
The GDPR explicitly allows processing for public interest and official authority purposes, while the LGPD focuses more narrowly on actions taken by public authorities without broader exceptions for public interest.

Ready to comply with the LGPD?

The Lei Geral de Proteção de Dados has reshaped Brazil’s data landscape. For businesses, LGPD compliance is now a mark of credibility. It’s an opportunity to show customers you value their privacy as much as they do.

Staying informed and adaptable is key, as the digital world evolves rapidly, and so must our approach to data protection. When you implement the principles of the LGPD, you’re not just following rules—you’re building a safer, more respectful digital future for all.

Don’t wait until it’s too late. Protect your business and build trust with your users by implementing a reliable CMP. Cookie Information’s platform ensures your website remains compliant with LGPD regulations while offering a seamless user experience.