The municipality of Rio de Janeiro published Law No. 7,023/2021, which establishes the Municipal Consumer Code (“Code“).
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:
- Recognition of the consumer’s vulnerability in the consumer market
- Government actions to effectively protect the consumer
- Harmonization of the interests of consumer relations participants and conciliation of the consumer’s protection with economic and technological developments
- Education and information on suppliers and consumers to improve the consumer market
- Efficient restraint of all abusive practices in the consumer market
- 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.
*In cooperation with Trench Rossi Watanabe, a Brazilian law firm.