Product Analytics and LGPD: How to Stay Compliant

The Lei Geral de Proteção de Dados (LGPD) is Brazil’s General Data Protection Law enacted in September 2020. The LGPD is similar to the European Union’s General Data Protection Regulation (GDPR), and it imposes strict requirements on how businesses collect, use, and process personal data of Brazilian individuals.

Product analytics is the process of collecting and analyzing data about how users interact with a product. This data can be used to improve the product’s usability, performance, and user experience. However, ensuring that product analytics practices comply with the LGPD is important.

Here are some tips for staying compliant with the LGPD when using product analytics:

• Identify the personal data you collect. The first step is to identify the personal data that you collect through your product analytics. This includes data such as names, email addresses, IP addresses, and device identifiers.
• Obtain consent for collecting personal data. Under the LGPD, you must obtain consent from users before collecting their personal data. This consent must be freely given, specific, informed, and unambiguous.
• Provide clear and transparent information about your data collection practices. You must provide users with clear and transparent information about how you collect, use, and process their personal data. This information should be included in your privacy policy.
• Limit the amount of personal data you collect. You should only collect the personal data that is necessary for the purposes for which you are collecting it.
• Use pseudonymization and encryption to protect personal data. You should use pseudonymization and encryption to protect personal data from unauthorized access, use, or disclosure.
• Users can access, correct, delete, and port their personal data. Under the LGPD, users can access, correct, delete, and port their personal data. You must comply with these requests promptly.
• Appoint a data protection officer (DPO). If you process a large amount of personal data, you must appoint a data protection officer (DPO). The DPO is responsible for ensuring that your organization complies with the LGPD.

By following these tips, you can ensure that your product analytics practices comply with the LGPD.

Here are some additional scenarios and examples to illustrate these tips:

• Scenario 1: A company collects the email addresses of users who sign up for its newsletter. The company uses this data to send out marketing emails. In this case, the email addresses are personal data, and the company must obtain user consent before collecting them. The company should also provide clear and transparent information about using the data in its privacy policy.
• Scenario 2: A company uses a heatmap tool to track users’ mouse movements on its website. The heatmap tool collects data such as the user’s IP address and the pages they visit. In this case, the IP address is personal data, and the company must obtain user consent before collecting it. The company should also use pseudonymization to protect the user’s identity.
• Example: A social media platform uses product analytics to track the number of times users click on a particular ad. In this case, the number of clicks is not personal data, and the platform does not need to obtain consent from users to collect it. However, the platform should still provide clear and transparent information about data use in its privacy policy.

How to stay compliant with LGPD when using product analytics

Businesses can stay compliant with the LGPD when using product analytics by taking the following steps:

1. Work with a legal advisor to understand the specific requirements of the LGPD. The LGPD is a complex law, and it is important to get expert advice on complying with its requirements. A legal advisor can help you understand the law, identify the personal data that you collect through product analytics, and develop a compliance plan.
2. Implement appropriate technical and organizational measures to protect personal data. The LGPD requires businesses to take appropriate technical and organizational measures to protect personal data from unauthorized access, use, or disclosure. These measures may include encryption, pseudonymization, and access controls.
3. Review and update your privacy policy to reflect the requirements of the LGPD. Your privacy policy should explain how you collect, use, and process personal data. It should also explain users’ rights, such as accessing, correcting, deleting, or porting their personal data.
4. Provide users with clear and transparent information about how their personal data is collected, used, and processed. This information should be provided in a concise, easy-to-understand manner. It should also be provided at the time of collection or as soon as possible thereafter.
5. Obtain consent from users to collect their personal data, where required. The LGPD requires businesses to obtain consent from users to collect their personal data in certain circumstances. For example, consent is required if the data is being collected for marketing purposes.
6. Limit the amount of personal data that is collected. Businesses should only collect the personal data that is necessary for the purposes for which it is being collected.
7. Protect personal data from unauthorized access, use, or disclosure. Businesses should take appropriate measures to protect personal data from unauthorized access, use, or disclosure. These measures may include encryption, pseudonymization, and access controls.
8. Comply with users’ requests to access, correct, delete, or port their personal data. Users can access, correct, delete, or port their personal data. Businesses must comply with these requests promptly.

By following these steps, businesses can ensure that their product analytics practices comply with the LGPD and protect the privacy of Brazilian users.

In addition to the above, businesses should also consider the following when using product analytics to comply with the LGPD:

• The use of pseudonymization and encryption to protect personal data.
• The use of consent mechanisms that are compliant with the LGPD.
• The implementation of data protection impact assessments (DPIAs) for high-risk processing activities.
• The appointment of a data protection officer (DPO) if required.

By taking these steps, businesses can minimize the risk of non-compliance with the LGPD and protect the privacy of Brazilian users.

You can also check our articles on GDPR and CCPA.