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Brazil: Municipality of Rio de Janeiro establishes its Municipal Consumer Code

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In brief

The municipality of Rio de Janeiro published Law No. 7,023/2021, which establishes the Municipal Consumer Code (“Code“).

More details

The Code aims to define regulations regarding consumers’ defense and protection within the local sphere by defining the rules that must be observed in consumer relations. According to the new law, the Municipal Policy of Consumer Relations has the following principles:

  1. Recognition of the consumer’s vulnerability in the consumer market
  2. Government actions to effectively protect the consumer
  3. Harmonization of the interests of consumer relations participants and conciliation of the consumer’s protection with economic and technological developments
  4. Education and information on suppliers and consumers to improve the consumer market
  5. Efficient restraint of all abusive practices in the consumer market
  6. Rationalization and improvement of public services

In addition, the Code addresses the practices and contractual clauses considered abusive. It also determines the administrative sanctions to be applied to suppliers in case of noncompliance.

Regarding the amounts of potential fines to be applied, the Code establishes that these will be graded within the limits provided by Federal Law No. 8,078/1990, Federal Decree No. 2,181/1997 and specific municipal laws. The amounts raised from the fines will be directed to the Municipal Consumer Rights Fund, and they will be used to finance projects related to the objectives of the Municipal Policy of Consumer Relations, to the defense of basic consumers’ rights, and to the administrative upgrading of Procon Carioca.

Our Consumer Law and Sustainability team is available to provide further information on this topic.

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*In cooperation with Trench Rossi Watanabe, a Brazilian law firm.

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Renata Campetti Amaral joined the firm in 2002 and became a partner in 2013. She is the head of the firm’s Climate Change, Environmental Law and Sustainability group in Brazil, and the leader of Ablfs McKfnzif’s global climate change group in Latin America. Is also the coordinator of the sustainability initiatives conducted by the office’s B-Green Committee. Renata assists the major players in the Brazilian market in Nature-bases Solution (NbS) projects, transaction of carbon credits, implementation of decarbonization strategies and carbon-related advocacy and regulatory matters. Renata leads several of the largest environmental and regularization cases in the country. She has extensive experience in sustainability matters, as well as in managing crises and negotiating with stakeholders. Advises on negotiating with authorities; judicial and administrative litigation; reviewing environmental aspects of institutions and financial operations; drafting environmental provisions in contracts and other commercial operations. Renata has extensive experience in dealing with environmental management, legal auditing and other organizational practices; regulatory and institutional analysis and environmental control; negotiation and implementation of environmental remediation plans; environmental licensing; legal aspects of biodiversity protection; environmental crisis management; development of preventive policies and strategies for companies; negotiation and drafting of contracts for the purchase and sale of carbon credits and acting in transactions related to various aspects of the energy transition.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Giovani Bruno Tomasoni joined the Firm in 2008 and became partner of the Environment, Consumer and Sustainability practice group in 2020. He practices with focus on Environment, Public Law, Energy, Forestry, and helps clients in the internalization of concepts such as sustainability, ESG, circular economy, environmental compliance, among others.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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Alexandre Salomão Jabra joined the firm in 2010. He integrates the environmental, consumer and sustainability practice group, with focus on consultancies, administrative procedures lawsuits and negotiations. In the environmental area, Alexandre has a wide breadth of experience in cases involving contamination, environmental and urbanistic licensing procedures, environmental liability, management of solid wastes and take-back requirements, effluents, electromagnet pollution, air emissions, forestry matters, protected areas and minorities, biodiversity, controlled chemicals products, socio and environmental liability of financial institutions, climate change, carbon markets and urbanistic regularization. In the consumer area, Alexandre has experience with consultations, administrative and judicial procedures related to Consumer Law issues with federal, state and municipal agencies, such as DPDC, PROCONs, Public Prosecutors and Municipalities involving recall, offers, data protection, misleading and abusive advertising, privacy, e-commerce, abusive clauses, commercial practices, terms and conditions and violations to the Brazilian Consumer Defense Code. Alexandre represents several clients in the oil&gas, automotive, chemicals, technology, food, communications, mining, finance and services sectors.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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