OneTrust Certified Privacy Professional Practice Exam

According to the LGPD, what percentage of the organization's revenue is the maximum fine applied for a violation?

1. 1% up to 20 million Reals

2. 2% up to 50 million Reals

3. 3% up to 75 million Reals

4. 5% with no cap

The correct answer is: 2% up to 50 million Reals

Under the General Data Protection Law (LGPD) in Brazil, the maximum fine for violations of the law is indeed set at a percentage of an organization's revenue. Specifically, the law stipulates that the fine can be up to 2% of the company's gross revenue in Brazil from the previous fiscal year, with a cap of up to 50 million Brazilian Reais. This structure is designed to ensure that penalties are significant enough to encourage compliance without being excessively punitive, particularly for large organizations. The percentage and the cap are important as they provide a balanced approach to enforcement, aiming to protect personal data while considering the financial implications for businesses. This approach reflects the law's intent to promote accountability and the importance of data protection within the operational practices of organizations.