FEDERAL DECREE REGULATES CONSUMER PROTECTION ON E-COMMERCE TRANSACTIONS

On March 9th, 2020, the Federal Decree No. 10.271/2020 was published determining the execution and fully enforcement of Mercosul Resolution GMC No. 37/19.

The Common Market Group of Mercosul (GMC) adopted the Resolution GMC No. 37/19 on July 2019 that regulates consumer protection on e-commerce.

The regulation applies to all suppliers located in any of the member-states of Mercosul or operating under toplevel domains (TLDs) of the those countries.

We highlight, among others novelties introduced by the new Decree when compared to the Federal Decree No. 7,962/2013, the following:

1. suppliers must display to consumers the following information: a) identification of registration of products subject to prior authorization regime,  b) the number of installments in case of installment sale, c) terms and conditions that the legal and/or contractual warranty are subjected to, d) any other relevant term or condition that consumer should be aware of;
   
2. the possibility of keeping or storing the terms of  contract on a permanent format by consumers;
   
3. the summary of the terms and conditions provided before the conclusion of the transaction should give emphasis on the major clauses; and
   
4. adoption of online platforms for dispute resolution. Such platforms must be fast, fair, transparent, low- cost and must consider specially cases of  vulnerable consumers or those in disadvantageous situations.

Member-states of Mercosul will seek to cooperate in order to guarantee adequate consumer protection on cross-border transactions.