A summary of the Decree for Electronic Commerce in Brazil

Friday, May 10, 2013

News about the Decree. 7962, of March 15, 2013

Brazil has regulated the E-commerce, through a decree that eliminated any doubts about how to act in these consumer relations. The Act complements the Code of Consumer Protection (Cdigo de Defesa do Consumidor), which already had this protection, but not so specific. Failure to comply with this decree can generate the same sanctions and penalties that are imposed for non-compliance of the Code of Consumer Protection (CDC). The main innovations are: The electronic commerce, including the electronic sites, must contain in a prominent place or easily display the following information: business name and registration number of the supplier, if any, in the National Register of Persons (CPF) or the National Register of Legal Entities (CNPJ) of the Ministry of Finance; physical and electronic address, and other information necessary for their location and contact; essential characteristics of the product or service, including risks to health and safety of consumers; discrimination in price, any additional expenses or accessory, such as delivery or insurance; price and how it is presented should be adequately described, always explaining clearly if there is no additional expenses such as freight, or insurance. If it depends on calculation of freight or insurance calculation, it must occur before payment in order for the consumer to choose whether or not to complete the deal, regarding the total amount that he or she will have to pay; complete terms of the offer, including payment arrangements, availability, manner and time of performance of the service or delivery or availability of the product; clear and conspicuous restrictions on the enjoyment of the offer and the important thing in all situations is to let the consumer know the conditions of the business and the product or service, starting up form the idea of good faith and transparency. If there is any doubt about what to write, it is preferable to include all the essential information about the business and about the product in a clear and intelligible manner, avoiding questions or contradictions from information and allowing the consumer to have security in mind. It is also important to remember that e-mail is a document and is legally valid.

In Collective Purchases or Group Purchases

the electronic sites or other electronic media used for group deals or similar arrangements procurement shall contain, in addition to the information specified in the above item and (art. 2 of the Decree), (a) the minimum amount of consumers for the realization of the contract; (b) period of use of the offer for the consumer, and (c) identification of the company responsible for the electronic site and the provider of the product or service offered, with the address information, contact and registration of the company (CPF, CNPJ, state registration, physical and electronic address, and other information needed to locate and contact the supplier and the group deals company); this information should be very explicit and simplified with the same tables and fields statements in the document that consumers have to keep, either digital or printed.

Responsibilities of suppliers
Decree. 7.962/13 took care to facilitate the way information and customer service are offered. Thus, some duties were established to the supplier that add to the other duties that were already in the legislation, especially in the Consumer Protection Code (CDC). The duties of the suppliers are:

provide summary of the contract prior to employment with the information needed for the full exercise of consumer choice, emphasized the clauses that limit rights, as well as offer the contract to the consumer means allowing their preservation and reproduction immediately upon hire; provide effective tools for consumer identification and immediate correction of errors in the previous steps to finalize the contract and immediately confirm receipt of acceptance of the offer; maintaining adequate service and effective care in the electronic media, which enables the consumer to resolve claims relating to information, questions, complaints, suspension or cancellation of the contract - to answer a maximum of five days. There should be immediate confirmation of receipt of consumer demands, by the same means employed. The services by electronic means, either chat, message or other means must be effective and allow efficient communication and language accessible to enable the consumer to resolve claims relating to information, questions, complaints, suspension or cancellation of the contract. Response time is 5 days and there is not a mandatory 24-hour answering service or call center, except if the service requires it. A simple trade, as in the physical, has not the obligation to give support for the consumer 24/7, so that the law gave the 5 days. Otherwise, small e-commerce businesses, would be impracticable due to the very high cost of such care. Think differently, beyond counteract the law, would kill entrepreneurship and elude the social function of the company. use effective security mechanisms for payment and processing consumer data.

Cancellation rights

The supplier has a duty to inform clear and conspicuous, the appropriate and effective means to exercise the right of cancellation by the consumer. The consumer may exercise your right of cancellation by the same tool used for hiring, without prejudice to other means available, getting immediate response, even if generated automatically.

Finally, it is worth noting that the Law should generate balance between supplier and consumer, always remembering that excesses cannot kill entrepreneurship and many small businesses that begin to rise in ecommerce. This does not mean that the consumer is helpless, but that structure should not be disproportionate for a small company operate.