Tech Roundup, Apr. 25 | How prepared are NGOs for new data protection rules?

. Apr 25, 2020
Tech Roundup, Apr. 25 | How prepared are NGOs for new data protection rules? Image: Astel Design/Shutterstock

You’re reading The Brazilian Reports weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: Brazilian NGOs still unprepared for the upcoming data protection law, how Covid-19 spurred e-commerce’s self-regulation in Brazil, and how broadcasted “live” concerts became a legal matter in the country.  

Are Brazilian NGOs ready to secure data protection? It doesn’t look like it

A recent report shows

that Brazilian third-sector organizations are lagging behind the requisite compliance measures mandated by the country’s General Data Protection Law. And while the Brazilian Congress <a href="">could delay the law&#8217;s enactment</a> to January 2021, the Covid-19 pandemic may have already turned the lack of resources into a crisis, according to a data expert that spoke to <strong>The Brazilian Report</strong>.&nbsp;&nbsp;&nbsp;</p> <p><strong>Running against time. </strong>The survey, conducted by data scientist and social projects manager Jérémie Dron, has already communicated with 95 organizations in March 2020. By that time, 60 percent of organizations informed they needed at least 6 months to comply with the legislation &#8211; currently set to be enforced by August 2020 &#8211; but only 19 percent of interviewees knew about the LGPD and were taking steps to comply. The low rate of compliance is even more concerning considering that 98 percent of the organizations deal with personal data and 60 percent deal with sensitive information.&nbsp;</p> <p><strong>Impacts. </strong>While organizations seem to be unprepared, they do however acknowledge how important LGPD is–– 91 percent believe the law shall have at least a moderate impact in the Brazilian third sector. According to Mr. Dron, “LGPD brings demands that may not be so quickly implemented. Therefore, as most of them reckon there will be an impact, it is important to start compliance processes as soon as possible to make sure institutions are ready.”</p> <p><strong>Roadblocks. </strong>Among the biggest challenges faced by organizations to comply, they mention structuring internal processes to handle data (79%), technological support (63%), and team training (62%), according to the research. In an interview with <strong>The Brazilian Report</strong>, Mr. Dron pointed out that the pandemic poses an even bigger challenge, placing LGPD in the backseat. “Postponing (the law) could allow this picture to improve, but considering the pandemic, I’m not sure how much this would help. Organizations actually need concrete compliance solutions at a low cost,” he said.&nbsp;</p> <p><strong>Why it matters. </strong>The LGPD holds any kind of organization that collects or treats personal data accountable for its security, including governments, companies, and NGOs. In case of non-compliance with the law, they may be subject to fines of up to 2 percent of yearly revenue &#8211; up to BRL 50 million. For Mr. Dron, although there is an expectation that fines won’t be used as authorities’ first resource in case of breaches, “depending on the size of the institution, I believe there is a risk of closure in case of a significant breach.”</p> <hr class="wp-block-separator"/> <h2>Covid-19 spurs e-commerce’s self-regulation in Brazil</h2> <p>Brazil’s National Consumers Secretariat (SCN), connected to the Ministry of Justice, is expected to publish in the next few weeks a guide for the self-regulation of marketplaces, expediting the conclusion of a year-long process that may provide more legal safety to the online retail sector, <a href="">reports</a> newspaper <em>Valor</em>.</p> <p><strong>Understanding the process. </strong>In 2019,<strong> </strong>Senacon asked websites and online marketplaces to present their policies to curb piracy. Based on the request, the organ analyzed issues and came up with a set of proposals, such as registering suppliers and informing authorities when they find issues, in addition to the existing measures. 20 companies have been ordered to take measures, according to an <a href="">official note</a> published by Senacon.</p> <p><strong>What does the regulation say?</strong> The future guide is an attempt to curb piracy in an online marketplace by establishing responsibility for the sale of fake items. According to <em>Valor Econômico</em>, the text requires marketplace websites to have 48 hours for the evaluation of fraud accusations, in addition to implementing policies to prevent the advertising of fake products as well as creating mechanisms to exclude them from online retail platforms immediately.</p> <p><strong>The debate.</strong> While part of the online retailers &#8211; particularly those who also have brick and mortar stores &#8211; believe they should share the responsibility to curb piracy, others &#8211; especially marketplaces that only sell third-party goods &#8211; claim they don’t possess the means to verify every single advertisement and sale on their platforms, as reported by <em>Valor Econômico</em>, adding that leading platforms such as Facebook, Alibaba, Amazon, Mercado Livre and B2W (Submarino and Lojas Americanas’ website manager) are among the second group.</p> <hr class="wp-block-separator"/> <h2>Social media broadcasts became a source of controversy in Brazil</h2> <figure class="wp-block-image"><img loading="lazy" width="1024" height="576" src="" alt="live jorge and matheus" class="wp-image-37162" srcset=" 1024w, 300w, 768w, 610w, 1366w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Sertanejo duo Jorge and Matheus</figcaption></figure> <p>All over the world, daily music concerts put on by musicians through streaming platforms have been cheering up people in self-isolation. It is no different in Brazil &#8212; apart from the small fact that some of these indoor concerts are now becoming a legal matter. Some of Brazil’s most popular artists such as the <em>sertanejo</em> duo Jorge and Mateus and legendary performer Caetano Veloso are broadcasting their performances on social media sponsored by the country’s biggest brands. While many of the concerts have been put on to raise money for various causes related to the Covid-19 pandemic, these concerts have become a way of advertising, which has alarmed Brazil’s advertising industry watchdogs.</p> <p><strong>Controversy.</strong> Conar, Brazil’s advertising industry self-regulating council, has opened a process to investigate broadcasts by singer Gusttavo Lima, sponsored by brewer Ambev. During one of the broadcasts, which lasted for seven hours, the singer consumes beer and appears to be drunk while cooking and singing at home. After the live, viewers&#8217; complaints were sent to Conar, claiming the video breaches the council’s guidelines on alcoholic drinks consumption and presents no discretionary message to viewers, especially concerning minors.</p> <p><strong>Freedom of speech. </strong>Conar was heavily criticized for its response, many Brazilians accused it of interfering in the freedom of speech. Even president Jair Bolsonaro took to Twitter in support of Mr. Lima, claiming the singer is being “unfairly and cowardly attacked” over the broadcast. The Council later clarified it has no intention of censoring the artistic content of broadcasts and only intends to make sure it follows the proper advertising regulations.</p> <p><strong>Defense. </strong>As specialized website <em>Meio &amp; Mensagem</em> <a href="">reports</a>, both Mr. Lima and Ambev have also defended themselves; the first saying the broadcast&#8217;s aim was to fundraise for charity, while the company recognizes Conar’s guidelines weren’t followed, despite Ambev providing orientation to artists, “We are reinforcing the rules considering this new context of virtual entertainment and we’re more committed than ever to the responsible consumption of our products.”</p> <hr class="wp-block-separator"/> <h2>Take note</h2> <ul><li>Brazilians will receive Regional Development Ministry and Civil Defense updates via SMS texts with information concerning Covid-19. The campaign will send messages to the over 210 million mobile phone numbers registered in the country. The nationwide campaign will begin in the hardest-hit states of São Paulo, Rio de Janeiro and Ceará. However, more than 150 million messages were already sent to numbers registered at the natural disaster prevention services by local civil defense teams. According to the ministry, the first texts shall include the message: “Civil Defense: it is up to all of us to win the battle against coronavirus. Wash your hands and avoid agglomerations. Federal government: working to preserve lives and jobs!”</li><li>Brazilian startups Hoobox and Radsquare have come up with a system that uses thermographic cameras and facial recognition algorithms <a href="">to measure patients’ body temperature at distance</a>. Currently in use in Albert Einstein Hospital in São Paulo, the technology, known as Fevver, sends an alert to nurses’ smartphones if a patient walks through the door with fever, allowing them to quickly move forward with Covid-19&nbsp; isolation procedures. The goal now is to install the system in other areas of the hospital, to prevent the disease from spreading, according to the Fapesp news agency.&nbsp;</li><li>A <a href="">new flexible mask</a> created by Brazilian companies promises to be more effective against coronavirus, reports UOL. By using a flexible polymer and microparticles of silica and silver, the mask is said to better adapt to the face and prevent the proliferation of viruses and bacteria. The masks may be washed and also include PFF2 filters, similar to those used by N95 masks. The brazilian startup Nanox and plastic industry Elka aims to produce 200,000 units, and donate 10 percent of the new masks to health facilities. Costs range from BRL 20 to BRL 30 per unit and the first batch is expected for early May. The commercialization of the new mask is possible after the watchdog Anvisa has loosened the requirements for producing Covid-19 related protection inputs.&nbsp;

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Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

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