New Federal Decree with impact on the Domains Administration and Online Commerce
The main purpose of Decree No. 7.962, which had to be accomplished by July 15, is that consumers have entire knowledge about their rights and have access to the basic information regarding online suppliers, such as address, phone and company registration numbers, which must be visible on the sites as well as the pertinent tools for forwarding questions, doubts and complaints.
Each site must show the CNPJ (Cadastro de Pessoas Fisicas – Tax-ID-No. of natural persons) or CPJ (Cadastro Nacional de Pessoas Jurídicas – Tax-ID-No. of juridical persons) of the responsible person as well as the real address, where same can be reached. This information must be displayed in a visible place of the site.
Considering that Brazil requires local presence for the registration of domain names, domains are often registered in the name of local colleagues, who are sometimes requested to reply claims for transactions carried out in those sites. As a first defensive strategy, the colleagues clarify that their firms provide only the domain name services and have no involvement in the administration of the site per se.
In order to avoid potential inconsistencies between the information shown in those sites and the legal defense alleged by the colleagues offering the local presence, it is recommended to comply with the decree by publishing in Portuguese the following data:
– Name and address of the site’s administrator;
– Information regarding the way the client/consumer can request the site administrator’s assistance.
– A note informing that the domain has been registered by “XXXX “ (CNPJ:XXXXX)
Further regulations of this decree seem to be focused on those sites, which offer online sales of products and services through them.
Product’s profile and terms: description of the product including all characteristics, mainly regarding possible risks for safety and health, availability of the product under the published price.
Prices must specify any other charges that could change the published prices (e.g. delivery charges). The sites must identify the payment modalities, as well as payment terms to ensure that the service or product is provided/delivered on time.
Group buying sites: The decree sets rules also for those sites grouping consumers interested in a particular product or service, in order to obtain discounts. Same must show the minimum sales requirements to obtain the group special price. Also, the summarized purchase contract (purchase terms) must be provided to the clients before completing the operation.
Customer Service and Cancellation of Purchase Operations: The customer can cancel unilaterally the purchase contract within the first 7 days as from the delivery date of the product. The sites must provide the customer with the pertinent tools/mechanisms to inform his intention to cancel the purchase without being penalized.
Penalties for non-fulfillment: The non-compliance of these regulations could result in penalties, seizure of products, register cancellation, prohibition to develop business in Brazil and administrative intervention. The penalties differ according to the company’s size and the number of affected consumers.
The complete decree can be found in the following link http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2013/decreto/d7962.htm
Sources: NameAction Inc., BR Government Site