The Difference Between GDPR and Other Privacy Laws (CCPA, LGPD, etc.)
The landscape of data privacy laws has evolved significantly in recent years, leading to the establishment of several key regulatory frameworks worldwide. While the General Data Protection Regulation (GDPR) of the European Union (EU) is often referenced as the gold standard, other major laws such as the California Consumer Privacy Act (CCPA) and Brazil’s Lei Geral de Proteção de Dados (LGPD) have also emerged as critical pieces of legislation. Each of these laws shares common goals, such as protecting personal data and enhancing consumer rights, but they differ significantly in scope, enforcement, definitions, and compliance requirements.
Understanding the distinctions between these regulations is essential for businesses operating internationally. Each framework presents unique challenges that require companies to tailor their compliance efforts accordingly. Below, we explore the major differences between the EU’s GDPR, the CCPA in California, and Brazil’s LGPD, along with references to other notable data privacy laws around the world.
Scope and Applicability
One of the most fundamental distinctions between these privacy laws is their scope in terms of whom they apply to and whom they protect. GDPR is considered one of the broadest data privacy laws, covering not only businesses within the EU but also those anywhere in the world that process the personal data of EU residents. This extraterritorial effect means that any company interacting with EU consumers, even if not physically located in the EU, must comply with GDPR requirements.
In contrast, the CCPA focuses specifically on companies doing business in California or collecting data from California residents. The law applies to for-profit businesses that meet specific thresholds, such as having annual gross revenues exceeding $25 million, deriving the majority of their revenue from selling Californian consumers’ personal information, or handling the data of 100,000 California residents or more. This makes its coverage narrower than GDPR’s, as it primarily governs large and data-intensive organisations.
Brazil’s LGPD also has extraterritorial applicability, mirroring GDPR’s broad reach. It applies to any organisation processing personal data collected or handled in Brazil, regardless of where the entity itself is located. This means that companies beyond Brazil must ensure compliance if they process data relating to Brazilian individuals.
Other privacy laws, such as Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and China’s Personal Information Protection Law (PIPL), further illustrate different scopes. PIPEDA applies largely to commercial activities in Canada, while PIPL adopts a GDPR-like extraterritorial approach with additional government oversight factors.
Definition of Personal Data
Different privacy laws define personal data or personally identifiable information (PII) in varied ways. GDPR takes a broad approach, defining personal data as any information that relates to an identified or identifiable living individual. This includes not only direct identifiers such as names and email addresses but also indirect data points, such as IP addresses and device IDs, that could potentially be linked to an individual.
The CCPA, on the other hand, has a slightly different approach. It includes a broad definition of personal information but places a strong emphasis on household data and extends to categories such as browsing history and geolocation data. Unlike GDPR, which applies to both personal and sensitive data comprehensively, CCPA is sometimes criticised for focusing more on consumer control over data than strict limitations on its usage.
LGPD’s definition of personal data is similar to GDPR, covering any information related to an identified or identifiable person. It also introduces the concept of sensitive personal data, which includes categories like racial origin, religious belief, and biometric data, imposing stricter processing conditions on such information.
Other global laws approach personal data differently. China’s PIPL, for instance, heavily limits cross-border transfers of personal data and introduces strict regulations around sensitive personal information, often requiring government approval. Canada’s PIPEDA, meanwhile, focuses on information collected during commercial activities, making its scope more transactional compared to GDPR.
Consumer Rights and Control
One of the most significant distinctions among these privacy laws is the level of control and rights granted to individuals concerning their personal data. GDPR stands out for its comprehensive set of user rights, including the right to access, rectify, erase (the “right to be forgotten”), restrict processing, object to data processing, and data portability. These rights ensure that individuals in the EU have significant influence over how their personal data is managed.
CCPA takes a different approach by focusing on specific consumer rights, such as the right to know what personal information a business collects, the right to delete personal data, and the right to opt out of the sale of personal data to third parties. Unlike GDPR, which centres around the concept of obtaining explicit consent for data collection, CCPA does not mandate explicit consent except for minors. Instead, it allows consumers to request that businesses stop selling their data, adopting an “opt-out” rather than “opt-in” model.
LGPD provides similar rights to GDPR, granting Brazilian citizens access to their data, correction of inaccurate information, deletion of unnecessary or excessive data, and portability of personal data when applicable. However, its enforcement mechanisms are still evolving compared to the stringent regulatory oversight of GDPR.
Other privacy frameworks, such as Canada’s PIPEDA, also provide access and correction rights but tend to be less comprehensive than GDPR. India’s draft Personal Data Protection Bill includes a broader set of consumer rights but remains under legislative debate.
Legal Basis for Processing Data
One of the key distinguishing factors between GDPR and other privacy laws is its requirement for a legal basis before processing personal data. GDPR mandates six legal bases under which data processing is justified: consent, contractual necessity, legal obligation, vital interests, public task, and legitimate interests. This framework places a heavy emphasis on obtaining explicit consent, especially in cases of sensitive personal information.
CCPA does not prescribe a similar legal basis requirement for data processing. Instead, it primarily focuses on giving consumers power over their data. Businesses can collect and use data unless consumers actively choose to opt out of data sales. There is no general requirement to obtain prior consent, except in limited cases such as when processing data of minors.
LGPD largely follows GDPR in requiring legal bases for personal data processing. It introduces ten legal grounds, including consent, legal obligation, and contractual necessity. This makes it structurally more similar to GDPR than to CCPA.
Other global laws like China’s PIPL and India’s proposed data protection regulations are increasingly leaning towards stricter legal basis requirements, particularly concerning sensitive data and government-related matters.
Enforcement and Penalties
GDPR is widely regarded as one of the most rigorous laws in terms of enforcement and penalties. Non-compliance can result in hefty fines of up to €20 million or 4% of a company’s global annual revenue, whichever is higher. The law is enforced by data protection authorities (DPAs) in each EU member state, which have the power to investigate, issue fines, and impose corrective measures.
CCPA originally had lower penalties, but it has since been strengthened with the introduction of the California Privacy Rights Act (CPRA), which took effect in 2023. Under this new regulation, California’s dedicated enforcement agency, the California Privacy Protection Agency (CPPA), has increased oversight powers and can impose significant fines, particularly for violations involving children’s data.
LGPD’s enforcement authority, Brazil’s National Data Protection Authority (ANPD), has the power to fine non-compliant companies up to 2% of their revenue in Brazil, capped at 50 million Brazilian reais per violation. Although these fines can be substantial, they are generally considered lower than GDPR’s maximum penalties.
China’s PIPL imposes even stricter penalties, with fines reaching 5% of annual revenue in China or outright business shutdown for severe violations. Similarly, Canada’s PIPEDA has historically had less severe financial penalties but is now evolving towards stricter enforcement.
Conclusion
While GDPR, CCPA, LGPD, and other privacy laws share the principle of protecting personal data, they differ significantly in their approach to compliance, enforcement, and consumer rights. GDPR remains the most comprehensive, with strict processing requirements and high penalties, while CCPA is more consumer-focused, providing individuals with opt-out rights and data sale regulations. LGPD follows closely in GDPR’s footsteps while adapting for Brazilian-specific needs.
For businesses operating across multiple jurisdictions, understanding these differences is crucial for developing effective compliance strategies. As global data privacy laws continue to evolve, staying up to date with legislative changes will be essential in ensuring compliance and maintaining consumer trust in an increasingly data-driven world.