The legal landscape continues to change because of the economic, legal, and privacy impacts of COVID-19. 

With a population of over 200 million, Brazil has received some of the harshest impacts of this epidemic. This means that the Brazilian government has had to adapt like never before. 

Although COVID has altered many things, one thing it hasn’t is the weight of the incoming LGPD privacy bill set to launch in the coming months. 

So what exactly is this new LGPD privacy law in Brazil?

Keep reading to find out!

What is The LGPD?

Brazil’s General Data Protection Law or, in Portuguese the Lei Geral de Proteção de Dados Pessoais (“LGPD”), was sanctioned in 2018. Because of coronavirus, it’ll be launched in August of 2021.

The General Data Protection Regulation (GDPR) from the Europan Union (EU) inspired the LGPD’s rules for processing personal data.

It aims to regulate the use of personal data processed and collected on people from Brazil. 

Before the LGPD’s passage, data protection in Brazil was enforced by a collection of separate frameworks like the Internet Act and the Consumer Protection Code. The LGPD privacy law addresses Brazil’s need for a unified data protection law in Brazil.

Companies that don’t follow LGPD’s terms could face some harsh penalties. They could receive a fine of 2% on their sales revenue, or even up to 50 million Brazilian Real (about $12 million in the United States).

Who Does The LGPD Privacy Law Apply to?

The LGPD privacy law affects both public and private businesses that operate online and offline. The LGPD applies to any legal entity that:

  • Processes personal data in Brazil
  • Uses personal data that is collected in Brazil, or
  • Processes personal data to offer goods or services in Brazil.

Keep in mind that the LGPD will be set for any business that collects or processes personal data in Brazil, regardless of where the organization is based. A business doesn’t have to be physically present in Brazil for the LGPD to apply.

How Does The LGPD Change the Brazilian Market?

There were more than 40 laws at the federal level for personal data protection before the LGPD privacy law. This meant that different industries had different regulations.

The LGPD provides a much-needed standard of data protection for all industries, whether public, private, online, or offline. 

lgpd privacy law example

There are over 138 million internet users in Brazil, making it the largest internet market in Latin America.

Enacting the LGPD privacy law makes it easier to have a free flow of protected data with other nations, such as the EU and the United States.

This move means that Brazil is beginning to take users’ privacy more seriously!

Preste atenção (pay attention) to this new data protection law because it’s surely going to change how e-commerce functions in Brazil.

Want to learn more about Brazilian e-commerce? Check out our guide to selling products in the Brazilian e-commerce market!

Want To Grow Your Business in The Brazilian E-Commerce Market?

It can be tricky learning how to grow your business in the ever-changing Brazilian e-commerce market. 

Lucky for you, our team of Brazilian market strategists is here to help you and your business. Contact us at today and take a look at one of our latest Brazil business reports!


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