Complying With Brazil's Consumer Protecting Code

Brazil, as the seventh largest economy in the world, and the fifth largest nation in terms of land mass, continues to present great market opportunities to foreign investors.  Product or service suppliers can enjoy great returns on their investments in the Brazilian market, but must understand key differences between conducting business in their familiar home markets and the Brazilian market. This article will discuss relevant provisions under the Brazilian Consumer Protection Code (Law Number 8.078 of September 11, 1990), referred to as the “CPC.”

The CPC prohibits products that present unreasonable risks to a consumer’s life, health, and safety, as well as deceptive or coercive advertising tactics. The CPC also requires suppliers to immediately inform consumers of any knowledge of potential harm or danger arising from the use of a product already sold. Three provisions under the CPC that suppliers should be specifically aware of are: product liability, advertising, and contract provisions and rights. By becoming familiar with these provisions, a supplier should feel confident that it is operating in a manner that will avoid any pitfalls under the CPC. 

Under the CPC, a “supplier” is defined as any person or corporation who provides products or services in the marketplace. It can be an importer, a manufacturer, or even a retailer.  A “consumer” is one who acquires a product or service. A “product” under the CPC is any moveable good or real estate, and “service” is any activity that is provided to the consumer.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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