Government of Brazil Ministry of Justice Department of Consumer Protection and Defense Consumer Protection and Defense in Electronic Commerce Eliane Moreira Public FTAA.ecom/inf/127 February 27, 2002 Original: Spanish Translation: FTAA Secretariat

Outline Consolidation of consumer defense in Brazil Consolidation of consumer defense in Brazil Consumer Defense Code Consumer Defense Code National System for Consumer Protection and Defense National System for Consumer Protection and Defense Consumer protection and defense in electronic commerce Consumer protection and defense in electronic commerce

Consolidation of consumer defense in Brazil Federal Constitution Fundamental rights and guarantees of citizens UN Resolution No. 39/248 General principles underpinning Brazil’s economic regulations Acts embodying transitional provisions

Changes in consumer relations Impersonality Impersonality Indirect transaction systems Indirect transaction systems Tremendous growth Tremendous growth Increased sophistication and complexity Increased sophistication and complexity Consumer vulnerability Consumer vulnerability State intervention needed to reduce imbalances State intervention needed to reduce imbalances

Consumer Defense Code Public order and public interest regulations Public order and public interest regulations National Consumer Relations Policy National Consumer Relations Policy Basic Consumer Rights Basic Consumer Rights Quality of Goods and Services Quality of Goods and Services Prevention of and compensation for injury Prevention of and compensation for injury Commercial practices Commercial practices Protection of contracts Protection of contracts Administrative penalties Administrative penalties Criminal offenses Criminal offenses Legal defense Legal defense National Consumer Defense System National Consumer Defense System Collective Consumption Agreement Collective Consumption Agreement

Principles of the National Consumer Relations Policy Recognition of consumers’ vulnerability Recognition of consumers’ vulnerability Need for government action Need for government action Need to reconcile the interests of all the players involved in commercial transactions Need to reconcile the interests of all the players involved in commercial transactions Aligning consumer protection with the need for economic and technological development, based always on good faith and the need to strike a balance between consumer-supplier relations Aligning consumer protection with the need for economic and technological development, based always on good faith and the need to strike a balance between consumer-supplier relations

Basic Consumer Rights Protection of life, health and safety Consumer education Right to information Protection from deceptive and fraudulent advertising, and coercive or unfair commercial practices Prevention of and compensation for moral or material damage Access to consumer rights defense

National Consumer Defense System Branch structure, participative and made up of independent entities and bodies Branch structure, participative and made up of independent entities and bodies Federal level: Department of Consumer Defense of the Ministry of Justice Federal level: Department of Consumer Defense of the Ministry of Justice At the State, municipal and district levels: over 720 consumer defense and protection foundations, known as PROCON At the State, municipal and district levels: over 720 consumer defense and protection foundations, known as PROCON Grass roots consumer defense entities Grass roots consumer defense entities

Consumer Relations Consumer: natural or juridical person that is the end user of the product or service purchased or used by said person. Consumer: natural or juridical person that is the end user of the product or service purchased or used by said person. Supplier: natural or juridical person, whether public or private, local or foreign, who pursues activities involving the production, assembly, creation, construction, transformation, import, export, distribution or marketing of products or the provision of services Supplier: natural or juridical person, whether public or private, local or foreign, who pursues activities involving the production, assembly, creation, construction, transformation, import, export, distribution or marketing of products or the provision of services Products: movable and immovable property, of a tangible or intangible nature Products: movable and immovable property, of a tangible or intangible nature Provision of services: any acts performed in the consumer market in exchange for payment, except such acts stemming from employment relationships. Provision of services: any acts performed in the consumer market in exchange for payment, except such acts stemming from employment relationships.

Consumer Relations in B2C Electronic Commerce Consumer relations resulting from “business to consumer” (B2C) electronic commerce were covered by the Consumer Defense Code (CDC) Consumer – accesses the Internet Supplier – makes access possible or makes its products or services available on the Internet

Jurisprudence Decisions on pedophilia, royalties or intellectual property Decisions on pedophilia, royalties or intellectual property Superior Court of Justice (STJ) Superior Court of Justice (STJ) and Federal Supreme Court (STF) – tendency to consider – tendency to consider software downloads as the provision of a service

E-Commerce Bills before Congress Digital signature Digital signature Computer fraud Computer fraud Responsibility of access providers Responsibility of access providers Data privacy Data privacy Electronic Commerce Electronic Commerce User Registration User Registration

Controversial Issues Electronic contracts Electronic contracts Right to privacy Right to privacy SPAM and misleading advertising SPAM and misleading advertising Jurisdiction Jurisdiction

B2C – Electronic Contracts Contract safety Contract safety Laws applicable to B2C contracts Laws applicable to B2C contracts Prior knowledge Prior knowledge Interpretation in favor of the consumer Interpretation in favor of the consumer Adhesion contracts Adhesion contracts Right to change one’s mind Right to change one’s mind

Advertising SPAM SPAM Misleading advertisin Misleading advertisin Abusive advertising Abusive advertising

Right to Privacy Cookies Cookies Right to information and privacy Right to information and privacy

Jurisdiction Effectiveness of judicial decisions Effectiveness of judicial decisions Cooperation mechanisms Cooperation mechanisms