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Government of Brazil Ministry of Justice Department of Consumer Protection and Defense

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

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Government of Brazil Ministry of Justice Department of Consumer Protection and Defense

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  1. Public FTAA.ecom/inf/127 February 27, 2002 Original: Spanish Translation: FTAA Secretariat Government of BrazilMinistry of JusticeDepartment of Consumer Protection and Defense Consumer Protection and Defense in Electronic Commerce Eliane Moreira

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

  3. 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

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

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

  6. Principles of the National Consumer Relations Policy • Recognition of consumers’ vulnerability • Need for government action • 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

  7. 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

  8. National Consumer Defense System • Branch structure, participative and made up of independent entities and bodies • 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 • Grass roots consumer defense entities

  9. Consumer Relations • 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 • 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.

  10. 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

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

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

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

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

  15. Advertising • SPAM • Misleading advertisin • Abusive advertising

  16. Right to Privacy • Cookies • Right to information and privacy

  17. Jurisdiction • Effectiveness of judicial decisions • Cooperation mechanisms

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