	Latin American Consumer Guide 2024
	Brazil
	(Latin America/Caribbean) Firm Demarest Advogados Contributors Maria Bragaglia Marques
What is the applicable legal regime addressing consumer protection in your jurisdiction?	The legal regime addressing consumer protection in Brazil is the Brazilian Code of Consumer Protection – Law 8078/1990 ("CDC") and other rules that regulate and/or complement it.
What is the definition of a consumer?	According to article 2 of CDC, "a consumer is any natural or legal person who acquires or uses a product or service as the final recipient". The sole paragraph of the same article adds that consumers are "a group of people, even if they are indeterminable, that have been involved in consumer relationships". However, Brazilian courts and doctrines also follow the concept called "Mitigated Finalist Theory", in which a company can be considered a consumer when it acquires the product or service as the final recipient, using it to meet its own needs, not those of its clients.
What goods and services are covered by consumer protection legislation in your jurisdiction?	According to Article 3 of the CDC, a product is any good, movable or immovable, tangible or intangible. As for services, the CDC covers any activity provided to the consumer that requires monetary remuneration, including banking, financial, credit, and insurance activities, except those arising from labor relations.
Do the applicable regulations provide a list of consumer rights?	Yes. As established in Article 6 of the CDC, every consumption relationship must comply with the following principles and rights: The protection of life, health, and safety against risks in the supply of products and services considered dangerous or harmful. Instruction and dissemination on the proper consumption of any product and service, ensuring freedom of choice and equality in contracting. Adequate and clear information about the different products and services, with correct specification of quantity, characteristics, composition, quality, taxes, and price, as well as the risks they may present. All information must be accessible to people with disabilities, subject to the provisions of the regulation. Protection against misleading and abusive advertising, coercive or unfair commercial methods, as well as against unfair or imposed practices and terms in the supply of products and services. The modification of contractual clauses that establish disproportionate benefits or their revision due to supervening facts that make them excessively onerous. The effective prevention and reparation of individual, collective, and diffuse damage to property and morals. Access to judicial and administrative institutions and agencies to prevent or repair individual, collective, or diffuse damage to property and morals, ensuring legal, administrative, and technical protection for those in need. The facilitation of the defense of their rights, including the reversal of the burden of proof, in their favor, in civil proceedings, when, at the discretion of the judge, the allegation is credible or when they are insufficient, according to the ordinary rules of experience. The adequate and efficient provision of all public services. The guarantee of responsible credit practices, financial education the prevention and treatment of situations of excessive indebtedness, preserving the existential minimum, under the terms of the regulations, using debt revision and renegotiation, among other measures. The preservation of the existential minimum, under the terms of the regulations, when renegotiating debts and granting credit. XII. Information on the prices of products per unit of measurement, such as per kilo, per liter, per meter, or per other unit. In addition to the rights provided for in Article 6 of the CDC (listed above), there are other consumer rights spread across the same CDC or distributed in other laws, which are equally relevant. For example: (i) the right to link the offer with the product or service offered; (ii) the right not to have to purchase products in the so-called "bundled sale", that is, when the offeror conditions the acquisition of a product on the acquisition of another product; (iii) the right to a legal guarantee for products and services, that is, the consumer can complain to the offeror for failures of a non-durable product/service within 30 days, and for failures of a durable product/service within 90 days; (iv) after making the complaint, the right to repair the failure of the product or service within 30 days, and, if it is not repaired, the offeror must replace it with a new one, refund the amount paid, or proportionally reduce the price; and (v) the right to repentance the purchase of products and services within 7 days, for purchases made outside the commercial establishment, among several other rights.
Do the applicable regulations provide a list of consumer duties?	No. The CDC does not provide specific duties for the consumer, but there are general duties spread across Brazilian legislation that stipulate that the consumer must (i) comply with the contract signed with the offeror (especially regarding their payment obligations); (ii) use the product or service in the technically appropriate manner provided for in the instruction documents and; (iii) always act in good faith, considering that the abuse of his/her rights is prohibited.
Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?	Yes. If the offeror of the products or services is not located in Brazil, the judicial authority will not have jurisdiction. However, if the offeror has an agency, subsidiary, branch or representation in Brazil, the Brazilian authority will have jurisdiction. Brazilian consumers can also file lawsuits in Brazil against companies not located in the country. In this case, the international company will be summoned by the Brazilian courts, even if located in another country, and must present its defense in Brazil.
Is there any alternative or special regime depending on the type of good or service?	Yes. CDC contemplates the possibility of applying rules contained in special laws, if any. For example, in the case of telecommunication services, bank services, airlines services, sanitary products, automotive products, etc., there are special laws that regulate the subject.
What is the minimum information required to be provided to the consumer with respect to goods?	As per article 6 and 30 of the CDC: Instruction and dissemination on the proper consumption of any product and service, ensuring freedom of choice and equality in contracting. Adequate and clear information about the different products and services, with correct specification of quantity, characteristics, composition, quality, taxes and price, as well as the risks they may present. Correct information in advertising campaigns, conveyed by any form or means of communication in relation to products and services offered or presented. All information must be in Portuguese and accessible to people with disabilities, subject to the provisions of the regulation. Furthermore, it is mandatory that the product or service actually offered is in accordance with the content of the offer. In addition, as previously mentioned, there are specific laws for different types of goods and services, so the analysis of all the necessary information to be provided must be on a case-by-case basis.
Is there a general warranty for products and/or services?	Yes. The CDC establishes a legal warranty in case of defects for the following terms: Thirty (30) days, in the case of the supply of services and non-durable products. Ninety (90) days, in the case of the supply of services and durable products. The claim period for repairing starts to run from receipt of the goods, except in the case of hidden defects, i.e., defects that cannot be detected at first. In this situation, the time limit is determined from the discovery of the defect, and it is included in the liability of the offeror, in accordance with article 18. The offeror is responsible to define what a defect is. There is also a legal warranty for the consumer of the supply of components and spare parts, by the manufacturer or the importer, until the manufacture or import of the product ceases. Once production or importation has ceased, the supply must be maintained for a reasonable period, in accordance with the law. The offeror of a good or service can also provide contractual or extended warranty to the consumer. The CDC does not establish such warranties as obligations, but, in case of contractual warranty, article 50 states that the warranty is complementary to the legal one and will be set by written agreement. In case of products purchased outside of the commercial establishment, article 49 of the CDC determines he right of repentance of seven (07) days, counting from the delivery of the product. When a consumer exercises the right of repentance provided for in such article, any amounts paid, for whatever reason, during the seven-day period, will be refunded immediately, monetarily updated.
Are there any products that have a legal warranty different from the general warranty?	Yes. CDC establishes, as a general rule, the legal warranty is for thirty (30) days, in the case of the supply of services and non-durable products and ninety (90) days, in the case of the supply of services and durable products. Any other type of warranty (such as contractual or for an extended period) is of sole discretion of the offeror.
For what reasons could the consumer initiate a complaint regarding a purchased product or service?	The consumer may file a complaint in case of the breach of any consumer rights contained in the CDC and in any special rules on consumer and user protection. For example, consumer may complain for breaches regarding the enforcement of a warranty; the repair of damage caused to goods in the provision of services or due to misleading information or advertising, regardless of the sector of the economy in which the consumer's rights have been breached.
Is there a specific judicial action to resolve lawsuits arising from consumer matters?	No. There is no specific legal action in Brazil for resolving disputes arising from consumer issues. The Brazilian judicial system, however, has specific and specialized bodies within its state jurisdiction, to deal with the cases involving consumer matters. Therefore, the consumer can file a complaint with the judicial or administrative authorities. In case of a judicial claim, there is no specific type of action. The consumer must file an ordinary lawsuit and the case will be assigned inside the courthouse to the specialized court in consumer matter (if existing in that location). In administrative proceedings, the consumer can report any complaint to the state Consumer Protection Office (in Brazil, known as PROCON), and also to the most important federal agency on matters related to consumer rights, called SENACON, so that the authorities can analyze the case and take action against the offeror, if necessary.
If there is no specific judicial action, how does the consumer make a claim?	Consumers can file a complaint with the judicial or administrative authorities. In case of a judicial claim, there is no specific type of action. The consumer must file an ordinary lawsuit and the case will be assigned inside the courthouse to the specialized court in consumer matter (if existing in that location). In administrative proceedings, the consumer can report any complaint to the state Consumer Protection Office (in Brazil, known as PROCON), and also to the most important federal agency on matters related to consumer rights, called SENACON, so that the authorities can analyze the case and take action against the offeror, if necessary.
What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.	In Brazil, most damages in legal actions are consequential damages of the non-compliance to the principles stated previously. Such damages can be: Compensation for damages caused by defect of a product or service, including the non-compliance with the legal warranty; Compensation for damages caused to goods in connection with the provision of services (for example, the delayed delivery of a good); Compensation for damages caused by misleading information and advertising; Compensation for damages caused by non-compliance with rules relating to contractual protection. These damages are, as a rule, compensatory damages, which may be material (pecuniary) or moral. There is also what we can consider as compensatory or punitive damages applied in the form of a fine, by administrative agencies and institutions, such as PROCON and SENACON, mentioned above.
Can consumer issues lead to class actions?	Yes.
How often does this occur?	Consumer matters may lead to class actions. The CDC (articles 81 and 82), as well as the Brazilian Federal Constitution, state that the interests and rights of consumers and victims can be defended in court collectively. Therefore, entities such as the Public Prosecutor's office or a consumer association, are entitled to file a class action aiming to protect the consumer rights and compliance with the laws. This practice happens very often in Brazil and Law no. 7347/1985 regulates this type of lawsuit. As an example, we can mention relevant class actions relating to banking or airline services, filed by consumer protection associations.
Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.	Before consumers, the liability for the product quality warranty falls jointly and severally on all the respective producers and suppliers that are part of the production and supply chain, according to the Articles 7, 18 and 25 of the CDC. As per Article 14 of the CDC, the service provider is liable, regardless of fault, for compensation for damage caused to consumers by defects in the provision of services, as well as by insufficient or inadequate information about their enjoyment and risks.
Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?	Yes. In Brazil, the National Consumer Protection System (SNDC) is made up of the following authorities, responsable for monitoring, investigating and sanction any non-compliance with the consumer protection laws: National Consumer Secretariat (SENACON): this entity is legally responsible for coordinating the SNDC and analyzing issues that have national repercussions and are of general interest, as well as planning, drafting, coordinating and executing the National Consumer Protection Policy. Consumer Protection Office (PROCON): Procons are state and municipal consumer protection and defense agencies, created specifically for this purpose, with powers, within their jurisdiction, to exercise the attributions established by the CDC, and by Decree 2181/1997. They are, therefore, entities that operate at local level, directly serving consumers and monitoring the local consumer market, playing a fundamental role in implementing the National Consumer Protection Policy. Public Prosecutor's Offices and Public Legal Defense: the Public Prosecutor's Office and the Public Defender's Office, within the scope of their powers, also work to protect and defend consumers and to build the National Consumer Relations Policy. The Public Prosecutor's Office, in accordance with its constitutional powers, not only monitors the application of the law, but also opens investigations and proposes collective actions. The Public Legal Defense, in addition to filing actions, defends the interests of the unassisted, promoting agreements and conciliations. Associations and other civil entities: civil organizations play an important role in consumer protection. They represent the organized group of citizens around a duly registered institution with the statutory function of protecting and defending consumers. Specific National Agencies: government agencies also play an important role in consumer protection, since they regulate consumer relations, and related procedures, based on the specific nature of a product or service, providing the necessary guidelines to all parties.
What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment	As per article 56 of the CDC, the sanctions that can be imposed are: fines seizure of the product product unusability revocation of the product's registration with the competent authority prohibition of product manufacture suspension of product or service supply temporary suspension of business activity revocation of concession or use permit revocation of the establishment or activity license total or partial interdiction of an establishment, work or activity administrative intervention imposition of counterpropaganda when the offeror practices misleading or abusive advertising The sanctions shall be applied by the administrative authority, within the scope of its powers, and may be applied cumulatively, including as a precautionary measure, preceding or incidental to administrative proceedings. In case of fines, article 57 of the CDC establishes that the fine will be no less than two hundred and no more than three million times the value of the Brazilian Reference Tax Unit, or equivalent index that replaces it. The amount is constantly updated according to the application of monetary index, but currently, in Brazil, the maximum is around R$13 million. The criteria for applying the fine may vary according to the entity/agency, considering several factors, such as type of infraction, extent of damage, economic capacity of the offender, etc.
Does the legal regime regulate safety campaigns or product recalls?	Yes. The recall product campaigns are stated within the CDC in article 10. However, the regulations regarding the procedure are established by SENACON or other competent authority, such and the Ministry of Justice, depending on the product to which the recall is a necessary measure (for example, for medicines, the Brazilian Health Regulatory Agency – Anvisa). The main regulation relating to recall, applicable to almost all hypotheses, is Ordinance 618/2019 of the Ministry of Justice, which provides guidelines for measures that must be imposed by companies to carry out the recall, with specific details of deadlines, format of communication, removal of the types of products, periodic reports, etc. A recall campaign is different from the effectiveness of a warranty, since the former arises from the report of the defective product by the producer. A recall campaign applies when a product is defective, that is, when due to an error in the design, manufacture, construction, packaging or information, it does not offer the reasonable safety to which every person is entitled. And this defect can produce an adverse event that threatens the health, life or safety of the consumer. The recall campaign implies obligations on the producer, supplier, importer, distributor and marketer to inform the SENACON or corresponding authority and consumers about the situation and proceed with the corrective measures to be taken and removal of the product from the market. In recall procedures in Brazil, information is a key aspect. Specific defective products must be listed, and instructions must be widely provided to affected consumers to return the product and request the replacement of the product or the refund of their money. All information must be exposed in popular vehicles (according to the characteristics of the public and the product), aiming to reach the maximum number of consumers as possible. The failure to report and implement the respective action plan to reach the consumer may result in the sanctions to the offeror. Supplier is also liable to compensate the consumer in case any damage suffered from the defective product affected by the recall.
Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?	Yes. In Brazil, it is not mandatory to implement foreign safety campaigns with respect to goods that are not marketed in the national territory. However, the offeror must guarantee that the consumer who purchased the product abroad will somehow be attended. The SNDC is highly protective with respect to consumers, especially when it comes to their protection against products that pose a potential risk to the health or life of the consumer. So, in the presence of a defective good that, despite not being marketed directly in Brazil, but can be used or purchased by a Brazilian consumer, the authorities can prohibit the commercialization of a specific product to ensure consumer protection. The Brazilian authorities can reach out directly to the Brazilian office of a company requesting for clarifications regarding an international recall campaign that does not include Brazil. However, the proactive communication of the company about an international procedure, currently, is not mandatory.
Are there any special regulations on e-commerce?	Yes. Additionally to the CDC, Decree 7962/2013 regulates the protection of consumers on e-commerce.
What types of e-commerce platforms are regulated by your legislation? List and define them.	The Brazilian legislation does not regulate specific types of e-commerce platforms. The legislation is applied to "electronic websites or other electronic means used to offer or conclude a consumer contract" (Decree 7962/2013, Article 2). However, for the legal warranty, the right of repentance of seven (07) days established by the CDC considers any product or service that the purchase or contracting takes place outside the commercial establishment, including any transaction within the internet environment (websites, apps, and others).
Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.	Yes. As explained previously, for the e-commerce regime, article 49 of the CDC establishes the right of repentance of seven (07) days, counting from the delivery of the product, for the consumer to regret the purchase. In this case, any amounts paid, for whatever reason, during the seven-day period, will be refunded immediately, monetarily updated. Also, according to Article 5 of Decree 7962/2013, the right of repentance can be exercised by the consumer through the same tool used for contracting, will not imply any financial burden to the consumer, and will be immediately communicated to the financial institution (or credit card administrator) to immediately cancel the credit card debt or refund the amount. There are also other consumer rights provided for in the same Decree, such as (i) the offeror's obligation to indicate, on the website, the company's full name and federal registration number; (ii) the indication, in the price, of any additional or accessory expenses, such as delivery or insurance; and (iii) the provision of an adequate and effective electronic support service, which allows the consumer to resolve demands regarding information, doubts, complaints, suspension or cancellation of the contract, among other rights.
Is this regime applicable for the purchase and sale of crypto assets?	No. In Brazil, there is still no regulation that specifically determines whether it is applicable or not. However, considering the protective aspect of the SNDC, it should be understood that the CDC is applicable to such transactions involving cryptocurrencies, as long as they are carried out through the legal concept of "offeror", that is, cryptoactive companies or digital banks, for example (and not in transactions between people/individuals).
Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?	Yes. Influencers must comply in particular with the provisions of CDC regarding the duty of information and those that refer to advertising. It is important to emphasize that the advertiser (or influencer) may be declared liable for the damages caused by misleading advertising or defects in the good or service to which it is the spokesperson, both from the point of view of consumer legislation and from the point of view of legislation that regulates advertising (Advertising Self-Regulation Code), especially because Brazilian courts understand that liability regarding to advertising extends to those who diffuse it and those who take advantage of it. Also regarding influencer marketing, the Brazilian Advertising Self-Regulation Council has published a manual of advertising guidelines aimed at digital influencers and brands, with instructions on this type of advertising in Brazil (english version available at: http://conar.org.br/pdf/CONAR_Digital-Influencer-Advertising-Guidelines_2021-03-11.pdf).
Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?	Yes. In Brazil, there are bills being processed that seeks to expand consumer guarantees in electronic commerce, crypto, information regarding recall proceedings and prohibition of abusive telemarketing. However, none of the bills imply a drastic, revolutionary change to the fundamental consumer protection regime in the country.

Latin American Consumer Guide 2024

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What is the applicable legal regime addressing consumer protection in your jurisdiction?

The legal regime addressing consumer protection in Brazil is the Brazilian Code of Consumer Protection – Law 8078/1990 ("CDC") and other rules that regulate and/or complement it.

What is the definition of a consumer?

According to article 2 of CDC, "a consumer is any natural or legal person who acquires or uses a product or service as the final recipient".

The sole paragraph of the same article adds that consumers are "a group of people, even if they are indeterminable, that have been involved in consumer relationships".

However, Brazilian courts and doctrines also follow the concept called "Mitigated Finalist Theory", in which a company can be considered a consumer when it acquires the product or service as the final recipient, using it to meet its own needs, not those of its clients.

What goods and services are covered by consumer protection legislation in your jurisdiction?

According to Article 3 of the CDC, a product is any good, movable or immovable, tangible or intangible.

As for services, the CDC covers any activity provided to the consumer that requires monetary remuneration, including banking, financial, credit, and insurance activities, except those arising from labor relations.

Do the applicable regulations provide a list of consumer rights?

Yes. As established in Article 6 of the CDC, every consumption relationship must comply with the following principles and rights:

The protection of life, health, and safety against risks in the supply of products and services considered dangerous or harmful.
Instruction and dissemination on the proper consumption of any product and service, ensuring freedom of choice and equality in contracting.
Adequate and clear information about the different products and services, with correct specification of quantity, characteristics, composition, quality, taxes, and price, as well as the risks they may present. All information must be accessible to people with disabilities, subject to the provisions of the regulation.
Protection against misleading and abusive advertising, coercive or unfair commercial methods, as well as against unfair or imposed practices and terms in the supply of products and services.
The modification of contractual clauses that establish disproportionate benefits or their revision due to supervening facts that make them excessively onerous.
The effective prevention and reparation of individual, collective, and diffuse damage to property and morals.
Access to judicial and administrative institutions and agencies to prevent or repair individual, collective, or diffuse damage to property and morals, ensuring legal, administrative, and technical protection for those in need.
The facilitation of the defense of their rights, including the reversal of the burden of proof, in their favor, in civil proceedings, when, at the discretion of the judge, the allegation is credible or when they are insufficient, according to the ordinary rules of experience.
The adequate and efficient provision of all public services.
The guarantee of responsible credit practices, financial education the prevention and treatment of situations of excessive indebtedness, preserving the existential minimum, under the terms of the regulations, using debt revision and renegotiation, among other measures.
The preservation of the existential minimum, under the terms of the regulations, when renegotiating debts and granting credit.
XII. Information on the prices of products per unit of measurement, such as per kilo, per liter, per meter, or per other unit.

In addition to the rights provided for in Article 6 of the CDC (listed above), there are other consumer rights spread across the same CDC or distributed in other laws, which are equally relevant. For example: (i) the right to link the offer with the product or service offered; (ii) the right not to have to purchase products in the so-called "bundled sale", that is, when the offeror conditions the acquisition of a product on the acquisition of another product; (iii) the right to a legal guarantee for products and services, that is, the consumer can complain to the offeror for failures of a non-durable product/service within 30 days, and for failures of a durable product/service within 90 days; (iv) after making the complaint, the right to repair the failure of the product or service within 30 days, and, if it is not repaired, the offeror must replace it with a new one, refund the amount paid, or proportionally reduce the price; and (v) the right to repentance the purchase of products and services within 7 days, for purchases made outside the commercial establishment, among several other rights.

Do the applicable regulations provide a list of consumer duties?

No. The CDC does not provide specific duties for the consumer, but there are general duties spread across Brazilian legislation that stipulate that the consumer must

(i) comply with the contract signed with the offeror (especially regarding their payment obligations);

(ii) use the product or service in the technically appropriate manner provided for in the instruction documents and;

(iii) always act in good faith, considering that the abuse of his/her rights is prohibited.

Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?

Yes. If the offeror of the products or services is not located in Brazil, the judicial authority will not have jurisdiction. However, if the offeror has an agency, subsidiary, branch or representation in Brazil, the Brazilian authority will have jurisdiction.

Brazilian consumers can also file lawsuits in Brazil against companies not located in the country. In this case, the international company will be summoned by the Brazilian courts, even if located in another country, and must present its defense in Brazil.

Is there any alternative or special regime depending on the type of good or service?

Yes. CDC contemplates the possibility of applying rules contained in special laws, if any. For example, in the case of telecommunication services, bank services, airlines services, sanitary products, automotive products, etc., there are special laws that regulate the subject.

What is the minimum information required to be provided to the consumer with respect to goods?

As per article 6 and 30 of the CDC:

Instruction and dissemination on the proper consumption of any product and service, ensuring freedom of choice and equality in contracting.
Adequate and clear information about the different products and services, with correct specification of quantity, characteristics, composition, quality, taxes and price, as well as the risks they may present.
Correct information in advertising campaigns, conveyed by any form or means of communication in relation to products and services offered or presented.

All information must be in Portuguese and accessible to people with disabilities, subject to the provisions of the regulation. Furthermore, it is mandatory that the product or service actually offered is in accordance with the content of the offer.

In addition, as previously mentioned, there are specific laws for different types of goods and services, so the analysis of all the necessary information to be provided must be on a case-by-case basis.

Is there a general warranty for products and/or services?

Yes. The CDC establishes a legal warranty in case of defects for the following terms:

Thirty (30) days, in the case of the supply of services and non-durable products.
Ninety (90) days, in the case of the supply of services and durable products.

The claim period for repairing starts to run from receipt of the goods, except in the case of hidden defects, i.e., defects that cannot be detected at first. In this situation, the time limit is determined from the discovery of the defect, and it is included in the liability of the offeror, in accordance with article 18. The offeror is responsible to define what a defect is.

There is also a legal warranty for the consumer of the supply of components and spare parts, by the manufacturer or the importer, until the manufacture or import of the product ceases. Once production or importation has ceased, the supply must be maintained for a reasonable period, in accordance with the law.

The offeror of a good or service can also provide contractual or extended warranty to the consumer. The CDC does not establish such warranties as obligations, but, in case of contractual warranty, article 50 states that the warranty is complementary to the legal one and will be set by written agreement.

In case of products purchased outside of the commercial establishment, article 49 of the CDC determines he right of repentance of seven (07) days, counting from the delivery of the product. When a consumer exercises the right of repentance provided for in such article, any amounts paid, for whatever reason, during the seven-day period, will be refunded immediately, monetarily updated.

Are there any products that have a legal warranty different from the general warranty?

Yes. CDC establishes, as a general rule, the legal warranty is for thirty (30) days, in the case of the supply of services and non-durable products and ninety (90) days, in the case of the supply of services and durable products.

Any other type of warranty (such as contractual or for an extended period) is of sole discretion of the offeror.

For what reasons could the consumer initiate a complaint regarding a purchased product or service?

The consumer may file a complaint in case of the breach of any consumer rights contained in the CDC and in any special rules on consumer and user protection.

For example, consumer may complain for breaches regarding the enforcement of a warranty; the repair of damage caused to goods in the provision of services or due to misleading information or advertising, regardless of the sector of the economy in which the consumer's rights have been breached.

Is there a specific judicial action to resolve lawsuits arising from consumer matters?

No. There is no specific legal action in Brazil for resolving disputes arising from consumer issues. The Brazilian judicial system, however, has specific and specialized bodies within its state jurisdiction, to deal with the cases involving consumer matters. Therefore, the consumer can file a complaint with the judicial or administrative authorities.

In case of a judicial claim, there is no specific type of action. The consumer must file an ordinary lawsuit and the case will be assigned inside the courthouse to the specialized court in consumer matter (if existing in that location).

In administrative proceedings, the consumer can report any complaint to the state Consumer Protection Office (in Brazil, known as PROCON), and also to the most important federal agency on matters related to consumer rights, called SENACON, so that the authorities can analyze the case and take action against the offeror, if necessary.

If there is no specific judicial action, how does the consumer make a claim?

Consumers can file a complaint with the judicial or administrative authorities.

What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.

In Brazil, most damages in legal actions are consequential damages of the non-compliance to the principles stated previously.

Such damages can be:

Compensation for damages caused by defect of a product or service, including the non-compliance with the legal warranty;
Compensation for damages caused to goods in connection with the provision of services (for example, the delayed delivery of a good);
Compensation for damages caused by misleading information and advertising;
Compensation for damages caused by non-compliance with rules relating to contractual protection. These damages are, as a rule, compensatory damages, which may be material (pecuniary) or moral.

There is also what we can consider as compensatory or punitive damages applied in the form of a fine, by administrative agencies and institutions, such as PROCON and SENACON, mentioned above.

Can consumer issues lead to class actions?

Yes.

How often does this occur?

Consumer matters may lead to class actions. The CDC (articles 81 and 82), as well as the Brazilian Federal Constitution, state that the interests and rights of consumers and victims can be defended in court collectively.
Therefore, entities such as the Public Prosecutor's office or a consumer association, are entitled to file a class action aiming to protect the consumer rights and compliance with the laws.

This practice happens very often in Brazil and Law no. 7347/1985 regulates this type of lawsuit.

As an example, we can mention relevant class actions relating to banking or airline services, filed by consumer protection associations.

Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.

Before consumers, the liability for the product quality warranty falls jointly and severally on all the respective producers and suppliers that are part of the production and supply chain, according to the Articles 7, 18 and 25 of the CDC.

As per Article 14 of the CDC, the service provider is liable, regardless of fault, for compensation for damage caused to consumers by defects in the provision of services, as well as by insufficient or inadequate information about their enjoyment and risks.

Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?

Yes. In Brazil, the National Consumer Protection System (SNDC) is made up of the following authorities, responsable for monitoring, investigating and sanction any non-compliance with the consumer protection laws:

National Consumer Secretariat (SENACON): this entity is legally responsible for coordinating the SNDC and analyzing issues that have national repercussions and are of general interest, as well as planning, drafting, coordinating and executing the National Consumer Protection Policy.
Consumer Protection Office (PROCON): Procons are state and municipal consumer protection and defense agencies, created specifically for this purpose, with powers, within their jurisdiction, to exercise the attributions established by the CDC, and by Decree 2181/1997. They are, therefore, entities that operate at local level, directly serving consumers and monitoring the local consumer market, playing a fundamental role in implementing the National Consumer Protection Policy.
Public Prosecutor's Offices and Public Legal Defense: the Public Prosecutor's Office and the Public Defender's Office, within the scope of their powers, also work to protect and defend consumers and to build the National Consumer Relations Policy. The Public Prosecutor's Office, in accordance with its constitutional powers, not only monitors the application of the law, but also opens investigations and proposes collective actions. The Public Legal Defense, in addition to filing actions, defends the interests of the unassisted, promoting agreements and conciliations.
Associations and other civil entities: civil organizations play an important role in consumer protection. They represent the organized group of citizens around a duly registered institution with the statutory function of protecting and defending consumers.
Specific National Agencies: government agencies also play an important role in consumer protection, since they regulate consumer relations, and related procedures, based on the specific nature of a product or service, providing the necessary guidelines to all parties.

What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment

As per article 56 of the CDC, the sanctions that can be imposed are:

fines
seizure of the product
product unusability
revocation of the product's registration with the competent authority
prohibition of product manufacture
suspension of product or service supply
temporary suspension of business activity
revocation of concession or use permit
revocation of the establishment or activity license
total or partial interdiction of an establishment, work or activity
administrative intervention
imposition of counterpropaganda when the offeror practices misleading or abusive advertising

The sanctions shall be applied by the administrative authority, within the scope of its powers, and may be applied cumulatively, including as a precautionary measure, preceding or incidental to administrative proceedings.

In case of fines, article 57 of the CDC establishes that the fine will be no less than two hundred and no more than three million times the value of the Brazilian Reference Tax Unit, or equivalent index that replaces it. The amount is constantly updated according to the application of monetary index, but currently, in Brazil, the maximum is around R$13 million.

The criteria for applying the fine may vary according to the entity/agency, considering several factors, such as type of infraction, extent of damage, economic capacity of the offender, etc.

Does the legal regime regulate safety campaigns or product recalls?

Yes. The recall product campaigns are stated within the CDC in article 10. However, the regulations regarding the procedure are established by SENACON or other competent authority, such and the Ministry of Justice, depending on the product to which the recall is a necessary measure (for example, for medicines, the Brazilian Health Regulatory Agency – Anvisa).

The main regulation relating to recall, applicable to almost all hypotheses, is Ordinance 618/2019 of the Ministry of Justice, which provides guidelines for measures that must be imposed by companies to carry out the recall, with specific details of deadlines, format of communication, removal of the types of products, periodic reports, etc.

A recall campaign is different from the effectiveness of a warranty, since the former arises from the report of the defective product by the producer.

A recall campaign applies when a product is defective, that is, when due to an error in the design, manufacture, construction, packaging or information, it does not offer the reasonable safety to which every person is entitled. And this defect can produce an adverse event that threatens the health, life or safety of the consumer.

The recall campaign implies obligations on the producer, supplier, importer, distributor and marketer to inform the SENACON or corresponding authority and consumers about the situation and proceed with the corrective measures to be taken and removal of the product from the market.

In recall procedures in Brazil, information is a key aspect. Specific defective products must be listed, and instructions must be widely provided to affected consumers to return the product and request the replacement of the product or the refund of their money. All information must be exposed in popular vehicles (according to the characteristics of the public and the product), aiming to reach the maximum number of consumers as possible.

The failure to report and implement the respective action plan to reach the consumer may result in the sanctions to the offeror. Supplier is also liable to compensate the consumer in case any damage suffered from the defective product affected by the recall.

Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?

Yes. In Brazil, it is not mandatory to implement foreign safety campaigns with respect to goods that are not marketed in the national territory.

However, the offeror must guarantee that the consumer who purchased the product abroad will somehow be attended.

The SNDC is highly protective with respect to consumers, especially when it comes to their protection against products that pose a potential risk to the health or life of the consumer. So, in the presence of a defective good that, despite not being marketed directly in Brazil, but can be used or purchased by a Brazilian consumer, the authorities can prohibit the commercialization of a specific product to ensure consumer protection.

The Brazilian authorities can reach out directly to the Brazilian office of a company requesting for clarifications regarding an international recall campaign that does not include Brazil. However, the proactive communication of the company about an international procedure, currently, is not mandatory.

Are there any special regulations on e-commerce?

Yes. Additionally to the CDC, Decree 7962/2013 regulates the protection of consumers on e-commerce.

What types of e-commerce platforms are regulated by your legislation? List and define them.

The Brazilian legislation does not regulate specific types of e-commerce platforms. The legislation is applied to "electronic websites or other electronic means used to offer or conclude a consumer contract" (Decree 7962/2013, Article 2).

However, for the legal warranty, the right of repentance of seven (07) days established by the CDC considers any product or service that the purchase or contracting takes place outside the commercial establishment, including any transaction within the internet environment (websites, apps, and others).

Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.

Yes. As explained previously, for the e-commerce regime, article 49 of the CDC establishes the right of repentance of seven (07) days, counting from the delivery of the product, for the consumer to regret the purchase.

In this case, any amounts paid, for whatever reason, during the seven-day period, will be refunded immediately, monetarily updated.

Also, according to Article 5 of Decree 7962/2013, the right of repentance can be exercised by the consumer through the same tool used for contracting, will not imply any financial burden to the consumer, and will be immediately communicated to the financial institution (or credit card administrator) to immediately cancel the credit card debt or refund the amount.

There are also other consumer rights provided for in the same Decree, such as (i) the offeror's obligation to indicate, on the website, the company's full name and federal registration number; (ii) the indication, in the price, of any additional or accessory expenses, such as delivery or insurance; and (iii) the provision of an adequate and effective electronic support service, which allows the consumer to resolve demands regarding information, doubts, complaints, suspension or cancellation of the contract, among other rights.

Is this regime applicable for the purchase and sale of crypto assets?

No. In Brazil, there is still no regulation that specifically determines whether it is applicable or not.

However, considering the protective aspect of the SNDC, it should be understood that the CDC is applicable to such transactions involving cryptocurrencies, as long as they are carried out through the legal concept of "offeror", that is, cryptoactive companies or digital banks, for example (and not in transactions between people/individuals).

Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?

Yes. Influencers must comply in particular with the provisions of CDC regarding the duty of information and those that refer to advertising.

It is important to emphasize that the advertiser (or influencer) may be declared liable for the damages caused by misleading advertising or defects in the good or service to which it is the spokesperson, both from the point of view of consumer legislation and from the point of view of legislation that regulates advertising (Advertising Self-Regulation Code), especially because Brazilian courts understand that liability regarding to advertising extends to those who diffuse it and those who take advantage of it.

Also regarding influencer marketing, the Brazilian Advertising Self-Regulation Council has published a manual of advertising guidelines aimed at digital influencers and brands, with instructions on this type of advertising in Brazil (english version available at:

http://conar.org.br/pdf/CONAR_Digital-Influencer-Advertising-Guidelines_2021-03-11.pdf).

Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?

Yes. In Brazil, there are bills being processed that seeks to expand consumer guarantees in electronic commerce, crypto, information regarding recall proceedings and prohibition of abusive telemarketing.

However, none of the bills imply a drastic, revolutionary change to the fundamental consumer protection regime in the country.

Latin American Consumer Guide 2024

Brazil

Latin American Consumer Guide 2024

Brazil

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