Companies will need to ensure more adequate transparency
The National Data Protection Authority (ANPD) announced on July 10 its decision to maintain the preventive measure that prohibits Meta from using users’ personal data to train artificial intelligence (AI) in Brazil. Published in the Official Gazette of the Union on July 2, the precautionary measure suspended the new privacy policy of the company – owner of Instagram, Facebook and WhatsApp – and provides for a daily fine of R$50,000 if the order is not complied with within five business days.
“In response to the request for reconsideration made by Meta and in view of the allegations of technical difficulties in proving compliance with the suspension of the treatment operation, the Council granted an additional five days to prove compliance with the decision,” ANDP states in a note.
According to the regulatory agency, rapporteur Joacil Rael postponed the analysis of the requests for a suspensive effect and the request for full reconsideration of the decision. “Accompanied by the votes of the other directors, he understood the need for a detailed technical analysis of the proposed measures and the presentation of a compliance plan accompanied by an implementation schedule,” clarifies ANDP.
The agency is analyzing possible violations of the General Data Protection Law (LGPD). The concern is that the information is being used “based on an inadequate legal hypothesis and lack of transparency,” alleges ANDP. Launched on June 26, Meta’s privacy policy authorized the use of content shared by users and publicly available for training generative AI. Brazilian users can opt out to block the use of their data.
“We are disappointed with the ANPD’s decision. AI training is not unique to our services, and we are more transparent than many players in this industry who have used public content to train their models and products. Our approach complies with privacy laws and regulations in Brazil, and we will continue to work with the ANPD to address this.”
your questions. This is a setback for innovation and competitiveness in the development of AI, and delays the arrival of AI benefits for people in Brazil”, Meta counters in an official statement.
Caution
“In addition to having a direct impact on Meta, the decision shows a very cautious stance by the ANPD regarding the use of personal data to train AI systems. This could have an impact on the market, including on smaller companies that adopt this practice. Given the content of the decision, companies will need to ensure more adequate transparency to users and maintain documentation on the legality of the processing of this data, especially in case the authority requests clarification,” says Lucas Maldonado D. Latini, a digital law specialist at FGV.
Read the full article in the edition of propmark of July 15, 2024
