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CYRELA CONSTRUTORA IS THE FIRST COMPANY CONVICTED FOR VIOLATING THE LGPD

October 13, 2020

By Leonardo Neri and Barbara Oliveira

On September 29, the Judge of the 13th Civil Court of the Central Court of São Paulo sentenced the construction company Cyrela to pay compensation for moral damages in the amount of R$10,000 to a client who had his personal data improperly shared with third parties, in addition to imposing a fine of R$300.00 per piece of data that was improperly shared.

In this case, the plaintiff had purchased an apartment unit from the construction company Cyrela, acting as a consumer. Since then, he began to receive recurring contacts from architecture companies, custom furniture companies, financial institutions and other services and products related to the property purchased.

According to the Magistrate, the conduct of sharing data with third parties for purposes that are not related to the contract, without the authorization of the holder and, furthermore, without any legal support, is a form of violation of the General Data Protection Law (Law No. 13,709/19), as well as the Federal Constitution itself and the Consumer Defense Code.

The construction company Cyrela had filed a counterclaim for compensation for moral damages, based on the author's alleged attempt to “tarnish” the company's image, which was dismissed.

The ruling was the first to use the LGPD as a basis for conviction and will certainly create a precedent for future legal actions, which should generate concern among companies about adapting to the LGPD immediately.

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