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I'd put a legal blob in the Legal section clearly outlining the nature of the fediverse and making it clear to the user that really deleting stuff from Lemmy is near impossible because every instance has a copy of it. That you'll happily comply and purge the user's data upon request but that it will still be cached on every other server.
I'd be interested to see what lawyers have to say about it. Technically the data sharing is absolutely required by the protocol so it might be okay with the GDPR, but it's also possible that as worded it can't possibly be GDPR compliant. It was designed with big companies like Google, Meta and big advertisers in mind, and didn't really account for decentralized services like the fediverse...
I believe this is probably what will happen if this ever becomes a big issue. GDPR was never intended to be navigable for anything except giant proprietary blob tech companies.
As I said in another comment, the GDPR protects people. And the GDPR only applies to personnaly identifiable data (IPs, email addresses, street address, legal name, date of birh...) Lemmy only collect emails and IPs, and do not share them between instances. So it's very easy to comply to the GDPR as long as you don't do anything shady.
The EU has a marketing issue. They tried to pass legislation to prevent companies to collect data. But instead, company displayed a popup, kept collecting data, and blamed it on the EU. Everytime I see a popup, I blame ruthless data collection.
Actually, Lemmy is most likely violatiing the California Consumer Privacy Act, which, as opposed to the GPDR, gives the right to update/delete any data generated by the user, not only personally identifiable information.
You don't see a lot of chatter about the CCPA, I wonder why.
Probably because it's wholly unrealistic