Decree alters the administrative process at the federal level in matters of consumer law


In brief

On 7 December 2021, Decree No. 10,887 was published, providing for amendments to Decree No. 2,181 of 20 March 1997, which provides for the organization of the National Consumer Protection System and the administrative process in regard to consumer law at the federal level.

More details

On December 7, 2021, Decree No. 10,887 was published, which brought innovations related to administrative sanctions and changes in the federal administrative process, establishing greater legal certainty within the scope of consumer law.

Among the most significant changes provided for in the Decree are the following: (i) infringement practices and the establishment of administrative proceedings; (ii) broader understanding of advertising through analog or digital means; (iii) compliance with the self-regulation practices adopted by the advertising market in general; (iv) specifications regarding the information required in the Notice of Infraction, for the establishment of the administrative proceeding and administrative decision; (v) new deadlines that went from 10 (ten) to 20 (twenty) days to present the defense; (vi) detailing of the parameters for the fine penalty, in order to ensure proportionality and reasonableness; (vii) inclusion of mitigating circumstances, such as confession and adherence to the platform; (viii) need for a second visit for the assessment when the economic activity is classified as a light, irrelevant or nonexistent risk, except in cases of recurrence, fraud or resistance to inspection; (ix) regulation of the procedure for preliminary investigations; (ix) the possibility of signing a Conduct Adjustment Term with obligations or compensatory fines, among others.
In addition, the Decree also established in Article 56 that the clauses considered abusive are just examples and do not prevent public administration entities from also understanding that other clauses are abusive, with a view to defending the interests and rights of consumers.
Our Environment, Consumer and Sustainability team is available to provide further clarification on this subject.

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