Surely you've already seen the predictions of fines and sanctions that the LGPD brought with it, right?
Thanks to a long history in Brazil we now have a new law, the LGPD, but what does this mean for businesses?

Before taking an alarmist or even pessimistic perspective on the law, it is essential to clarify that the use of personal data by businesses has not been prohibited, but simply more regulated. This means that you as an entrepreneur or specialist in your market can and should maintain your work and strategies, though you must now understand how to adapt your business model to the regulations that the law prescribes for the use of personal data.

So what does the [LGPD](https://goadopt.io/blog/lgpd-lei-geral-de-protecao-de-dados/) mean for your company?

Below you will find as brief and practical as possible a compilation of key information that will serve as a guide through the doubts you might face on your path to understanding and, above all, meeting the expectations of this new law!

## Introduction

### Before we start, who is AdOpt to help me with this?

After several years of work initiatives and studies on data, marketing, and privacy on the internet, we need to make a confession: we’ve honestly seen it all. We've been in this market from the birth of predictive analytics concepts and all the Adtechs that have emerged since then, through the rise and fall of Cambridge Analytica and its scandals and leaks, countless analyses and documentaries, Wikileaks, Snowden, and so on.

As such, we’ve followed the market through the emergence of the GDPR and its derivatives around the globe, which today, here in Brazil, has culminated in the LGPD. For almost seven years we have been working daily with several of the pillars that the “Marketing for Data” sector is so familiar with today:

- The construction of data models for analysis of performance metrics
- Sequential, non-relational, physical, cloud databases and many others 
- Numerous features of tracking tags, fingerprints, SDKs, etc.
- Endless technology, privacy, rumors and browser updates with their third-party cookie blocks
- Various integrations with ad servers, CRMs, email tools, DSPs, cookie syncs with DMPs, data providers, credit bureaus, etc.
- Firewalls, backdoors, security routines, DNS, etc.

In short, there are more than 200 million unique users mapped on our systems, and 40,000 sites have passed through our network since 2015, when we created the first version of our tag and cookie technology.

After all this experience, we’ve realized that the knowledge we’ve gained is not useful unless:

1. We promptly implement the best work and safety practices.
2. We are able to translate international theories into our legislation and local market realities.
3. We debunk the idea that starting the work requires infinite and extremely elaborate resources.
4. The theory generates a real gain for customers, and consequently sales for both sides.

Over the course of 2019 we interviewed nearly 250 companies about the LGPD, its impact, and their perceptions of the challenges of adaptation. We learned that their main difficulties were understanding the law, lack of skilled labor, difficulties with handling new technologies and, last but not least, the administration and collection of the consent of data owners.

Since then we’ve understood that the LGPD remains an open question for most, and at the same time that we, who are a living part of the market, have in our hands the opportunity to reinforce how seriously privacy should be taken. Privacy is an individual right of all citizens that should be valued and protected before it is lost. 

How much harder is it these days to ignore the elephant in the room, the growing number of cell phones and devices collecting text, audio, and video data in virtually every home?

The fact is, privacy legislation is here to stay! Yes, we are at a point of no return when it comes to data usage by our favorite gadgets. With that, it's essential that we know the value of privacy while we still, at least theoretically, have control. It’s especially important that we have access to technologies that work in our favor, not only collecting our data but also giving us the freedom of choice when faced with the countless collection occasions that we face daily. Yes, before data is collected the choice to consent must have been made by a free citizen who was informed of their rights clearly, and their decision must be respected.

So, in the midst of this accumulation of data, services, doubts, and endless testing of technologies, AdOpt was born.

We spent years studying the law and applying it practically with the goal of minimizing the negative consequences that the marketing and advertising industries could suffer following its enactment. We did this not only because of the GDPR, which drastically reduced the revenue of large publishers when it came into effect in Europe, but also because of the needs of the maturing Brazilian market, which is confronting countless technologies that haven’t been tested due to the limitations of local budgets.  

AdOpt began as a quick and practical way for all companies to communicate and collect the consent of their visitors, without running the risk of destroying their metrics and engagement with one more ugly warning that looks like a paywall (or we could say privacy wall?). 

Throughout AdOpt's journey and evolution as a product, we have also aimed to democratize access to information about the legislation and its application, so that we can all respect everyone's privacy! 

**From a commercial point of view, we came to the conclusion that the market lacked some easy-to-understand positioning and, above all, demystification of the interests of some sectors of the market with regard to the new General Law for the Protection of Personal Data, the LGPD. Lawyers, accountants, IT professionals, and several other groups are eager to grab their share of the market, and this is perfectly understandable, since the law encompasses knowledge from several areas simultaneously. However, in terms of privacy, we at AdOpt believe that there are two principles more important than any market advantage:**

## 1 – The principle of freedom.

Yes, freedom is of immeasurable value and only those who lose it are able to truly describe the impact of its absence. Whether in access to information, the right to come and go, freedom of the press, or the simple right to be forgotten. We are the generation that not only created memes, but also “cancel culture,” fierce criticism of “fake news,” the banning of some social networks, and more. Based on the premise of valuing truth, we sometimes forget to measure the real impact of some unilateral mechanisms that end up overshadowing the real value of freedom.

The LGPD is also a mechanism that helps citizens to maintain their freedom in the face of internet giants.

## 2 – Without content producers, we wouldn't have the internet.

Back when the internet was a simple cluster of half a dozen blogs and news portals, the LGPD would never have made sense. However, it was thanks to these internet anchors that the opportunity to monetize people's attention on certain pages was created! Without the big publishers we would not have programmatic media and all the opportunities to automate the money flow now generated globally, with the scale and proportion that we have today. 

**Without programmatic media we would not have social media as we know it.**
### After all, as Mr. Zuckerberg would say: “We run ads.”


Perhaps this introduction smacks of “manifesto” when we extol so strongly the value of privacy and freedom, as expressed through free access to information and consequently in the production of content.
Here's another confession for you, dear reader.
AdOpt today functions to provide cookie notices, as well as helping as a [CMP]("https://goadopt.io/blog/o-que-e-uma-cmp/") (Consent Management Platform). But you’ll be surprised to see what’s ahead as we connect all these dots and give you access to the technologies we’re designing! 

### If data is the new oil, privacy will be the new currency!

The subject is not over yet, but we hope you have understood how passionate we are about it and will allow us to guide you through! In our next chapter (article) we want to show you the basis for understanding the law: [The Legal Bases of the LGPD]("https://goadopt.io/blog/bases-legais-da-lgpd/"), See you there!


Understand the meaning of the LGPD for your company

João Bruno Soares

## Want to understand why there are cookie banners on every website you visit today? This article is for you!

Cookie banners, cookie notices, GDPR notices or Privacy Notices… call them what you want. (We’ve even heard them called “that boring legal notice,” but more on that later.)

In fact, all the world’s largest and most serious companies have already added a cookie notice to their website, and this is for a good reason: GDPR, LGPD, CCPA and many others are live!

Completely inspired by the GDPR ,the LGPD in Brazil, as it’s commonly known, is a regulation that was created in 2018 specifically to address the way that personal data, such as a user’s name, e-mail, telephone number, address, etc.,  is collected and utilized by companies.

## The GDPR, LGPD…CCPA and cookie banners are here to stay!

Why does the GDPR require cookie banners? Does every website now need a banner?

The LGPD, as said, was inspired by the European Union’s General Data Protection Regulation (GDPR), and similar laws are already being enacted all over the world. Even North Korea now has its own privacy regulation! That is to say, this is not a passing trend and must be taken seriously. 

This shift does not necessarily mean more bureaucracy, but it does mean real empowerment. Thanks to these new privacy laws, ordinary citizens now have the right to authorize, deny, or even revoke companies’ ability to use their data!

## You mean I didn’t already have the right to decide what happens with my data?!

Don’t worry, we can explain! 

The answer is not that simple, as this law needs to function in parallel with innumerable others that also govern individual rights, including consumer, health, and internet law, among others. 
Keep going, it will be worth it! Soon you’ll be able to speak like an expert on this subject. 

With the advancement of advertising technologies that are linked to [digital marketing](https://br.sharpspring.com/marketing-digital/) and the exponential growth of social media, everyone now has a machine that generates and stores valuable data in the palm of their hands: cellphones. Every time an individual accesses a website, e-commerce account, Instagram, Facebook, or any similar platform, the visit generates data that is collected and stored by cookies. 

Cookies are simply text files that are capable of storing information generated by websites. 

## Want a practical example of cookie technology? 

I'm sure you know when you enter a website through your browser and it recognizes that you’ve already accessed the page before, allowing you to re-enter the site without signing in again? This happens because your browser has already stored a cookie from that site which can authorize your access. 

In the same way, cookies can also store data like which photos you’ve liked on Instagram or if you “forgot” a product in your shopping cart. All of this information is saved for later use.  

## And this is very valuable! 

Did you know that a person needs, on average, at least six interactions with a product or service before making the decision to purchase? 

It’s no wonder that when you “forget something in your shopping cart,” the product seems to follow you all over the internet with ads. Only then do you end up making the purchase. Is this a coincidence, or magic? 
Neither, these are the processes and technologies that utilize cookies for advertising.

If you’ve been through this, welcome! You’re in good company. 

Simply put, cookies are a piece of the wheel that moves the internet. It’s the use of data for advertising that allows us to consume the content that we love for free. After all, who do you think pays for that cool, free YouTube video? Advertisers! And now you know they use cookies to find you on your favorite channel. 
The use of cookies is not necessarily positive or negative, but it reached a point where individuals like you or I were not fully in control of what the internet giants were doing with our data. This is why privacy laws like the GDPR, LGPD and CCPA were created: to rebalance the relationship between companies and people.   
Ok, but weren’t you going to talk about data, privacy, and the rights I have? 
Yes! When the LGPD was enacted by Brazil in August of 2020 it forced companies to examine the way that they handled the plethora of consumer data generated by their business, and to make changes to their processes and databases. One of these changes was the obligation to inform visitors of the reason for their data collection, as well as the legal basis for it. 
Thus, in accordance with the LGPD, GDPR, CCPA and several others, every business must present a clear and objective communication that informs visitors of their purposes for collecting personal data. Whether on or offline, it is essential that every citizen is notified of the collection of their personal data as well as the many ways it might be used. 
As for us data “subjects,” as some law refers to us, we are now able to make a “free, informed, and unequivocal declaration,” as to whether or not we permit its use. That is to say, if we consent to the terms outlined by the business, we authorize them to use our data. In Brazil, for example if businesses violate this flow by collecting data without consent, they could face serious consequences including being fined up to 2% of their annual revenue, with a ceiling of 50 million real. Has your business ever considered the threat of being fined simply for not having a cookie banner on its website? 
Want to understand exactly how the GDPR, LGPD and CCPA impact your business? Here are some articles on the subject.
## But how do I know what they already do, or will now do with my data? Will the cookie banner tell me? 
Who among us has actually read the privacy policy or terms of use of a website we use? Not many, but it’s precisely in these official documents that these answers are found.
According to the Privacy Laws, businesses must comply with certain official documentation requirements and legal basis to inform users of their entire data collection process and its purposes. Well-known by lawyers, the “Privacy document kit” fulfills the standard that every company must meet, including a privacy policy, terms of use, data mapping, and contact information of the DPO, among others.
## Now the good news! 
These documents don’t need to be written in “legalese,” nor should they be, as LGPD, GDPR and CCPA requires that the information presented be “clear and accessible.” A user cannot consent to the collection of their data if they cannot understand the notice. 
What’s the use of a company acting cool in its marketing and communications, or speaking beautifully in advertisements, if when addressing privacy and transparency it starts speaking in code? It doesn’t make sense, right?
Anyway, this article aims to inform you that, along with the laws like GDPR, LGPD and CCPA, we also have new rights and duties, both as citizens and, especially, as companies. In this matter, the cookie banners actually serve a noble purpose! Businesses that use these banners correctly are able to show customers that they care about their individual rights, freedom of choice, and privacy. 
## A good cookie banner should meet certain minimal requirements outlined by the GDPR, LGPD and CCPA: 
Inform users clearly and objectively of all of the ways in which the company collects consumer data. 
Point to official documents such as the privacy policy, terms of use, etc. (referring back to the Privacy document kit mentioned above). 
List the options that you as the data owner have to fully or partially accept “the rules of the game” with that company, thus allowing you to receive their content or consume their products or services. 
Make it clear where, upon accepting the cookies, you could access the data that the company will gather about you, and how to opt-out if you change your mind. 
Allow users to consent to the data collection in a way that is free, informed, and unambiguous. 

Last but not least:
When you see the banner: “If you continue browsing, we understand that you consent…” know that the law has determined this to be insufficient, and there are several arguments why. Mainly, this banner without further detail does not give the visitor enough information to give their consent in a manner that is “free, informed, and unambiguous.”
We hope this article helped you to understand the “why” of the now popular cookie banners, which will soon be installed on all company websites. With this new regulation, there is no going back. 

## We’ll leave you with two final invitations: 

1. Do you know a business that needs to know more about cookie banners?
Again, any and all companies that collect personal data, such as name, email, or telephone number on their site, and use third-party services like the Facebook pixel, Google Analytics, etc. MUST include this banner.
We at AdOpt are experts in cookie banners and can help them today! And even better, for many it’s free! Send this article to whoever you know that could use this content. They will thank you when they avoid an unpleasant fine!

2. Want to dive deeper into the subject of cookie banners?
We’ve got more articles for you here.


Understand the meaning of the LGPD for your company

Why are cookie notices everywhere?