Brazil’s data protection failings may harm innovation
Subject Brazil's new data protection law. Significance Brazil’s General Data Protection Law (LGPD) will come into effect in August 2020. Largely mirroring the EU’s General Data Protection Regulation (GDPR), the new legislation seeks to strengthen citizen privacy while also giving legal certainty to businesses engaging in data transfers. However, unlike EU jurisdictions, Brazil will not set up an autonomous data authority to enforce its legislation. Rather, its new National Data Protection Authority (ANPD) will be directly linked to the presidency and have no budgetary independence. Impacts A reduced talent pool will limit the growth of Brazilian firms in the digital economy. Shortages of relevant talent will affect companies’ ability to innovate. The shortcomings of Brazil’s data protection legislation could add a serious hurdle to the development of its digital economy.