E-commerce in Brazil: Practical specificities for complying with the brazilian online market

Brazil has the fifth largest population in the world and thefourth largest Internet market share comprised of over140 million users (and growing); these numbers meanthat big players and investors in the online marketplaceare taking note of Brazil. As discussed below, consumerprotection is a key issue for retailers in Brazil, especially inrelation to e-commerce.

Even though online sales are cross-border by nature,retailers keen to invest in the Brazilian e-commerce marketmust be aware of the local regulations, and in particular,the specifics that mainly derive from the need to protectconsumers from misleading or missing information.

Regardless of the physical location of an online sales entity,sellers into Brazil must comply with its local regulations.Thus, when the seller’s website has elements seeking totarget Brazilian consumers, such as offering the website inPortuguese and/or providing purchases in Brazilian currency,it will trigger the need for compliance with Brazilian laws,especially the Consumer Protection Code, E-commerce Actand Internet Act.

Pursuant to these laws, websites are required to displaycertain information enabling users to easily identify whois responsible for hosting the website and offering theservices. For example, companies must prominently andclearly indicate information regarding the offered productsand services, information concerning the service provider,terms of online purchasing, payment condition and productwarranties. It is crucial for compliance to provide facilitatedcustomer service, from initial steps of pre-sale throughdelivery of goods.

On the consumer side, purchasers have the right towithdraw and to be informed of their rights to cancelany contract and return purchased goods within sevendays of conclusion of purchase or receipt of the product,for transactions that are concluded online or outside theprovider’s bricks-and-mortar location.

In relation to online advertising, the market best practicerules established by the National Council for Self-RegulatoryAdvertising (CONAR) are commonly observed andrespected by companies and communication vehicles, as wellas commonly acknowledged and applied in Brazilian courts.Such rules also establish the requirement of a truthfulpresentation of the product being offered.

In addition, in accordance with the Brazilian Internet Act andthe recently enacted Brazilian Data Protection Law, whichwill be in force in February 2020 and will apply to companiesthat offer services or provide goods in Brazil, it is mandatoryto be transparent and offer comprehensive information onthe treatment of consumer data.