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Consumer Protection Code turns 30 amidst consolidation of Brazilian consumer empowerment culture
eis such as the Positive Registry and the Personal Data Protection also contribute to the defense of consumer rights
São Paulo, September 30, 2020: The Consumer Defense Code (CDC) celebrated its 30th anniversary on September 11 and, over these three decades, it has played a fundamental role in protecting consumers. More than that, it has created a culture of consumer protection, offering ample protection mechanisms and various ways of exercising them. To the same end, laws such as the Cadastro Positivo and the Personal Data Protection Act (LGPD) have consolidated consumer protection. empowerment of consumer Brazilian, and assisting in the application of consumer laws to the new times, in which virtual consumer relations have gained relevance.
The CDC, which was a landmark in national law, brought a series of innovations to the relationship between consumers and companies and allowed citizenship to be made effective through mechanisms that until then had been innovative.
Consumers are now protected by a specific law. Before the CDC, consumer relations were governed by the Civil Code, which treats those involved in a contractual relationship equally. Under the CDC, the consumer is considered the weaker party in the relationship with suppliers of products and services. This is because, compared to companies, they have fewer resources, including financial ones. In this way, the CDC brings the necessary balance to the relationship, enabling consumers to exercise their rights.
Other achievements of the CDC were the obligation for companies to print the expiry date on the packaging of their products; the consumer's right to protection against misleading advertising; and the right of repentance, which gives the consumer seven days to withdraw from the purchase whenever the contract takes place outside the commercial establishment. As well as bringing balance to consumer relations, the CDC's requirements have encouraged companies to improve their products and services, including health and safety aspects. As such, it has helped to increase the competitiveness of companies, enabling them to compete on an equal footing with those from other countries.
“Just as CDC empowered the consumer, and other laws passed afterwards went in the same direction,” he says. Elias Sfeirpresident of ANBC (National Association of Credit Bureaus). “This is the case with the Positive Registry Law, which, by means of a comprehensive credit score that takes into account the complete history of payments, allows consumers to access credit more easily and under better conditions,” says Sfeir.
With the Positive Registry, a momentary default is relativized by the payment history, which is complete and takes into account all bills paid on time. Through the Positive Registry, financial institutions can make a more accurate assessment, granting fairer interest rates and better loan repayment terms to those who offer a lower risk of default.
A LGPD (General Personal Data Protection Law), The new law, which came into force on September 18, also strengthens consumers by ensuring that data subjects have rights over their information collected and processed by companies and the government.
In short, the CDC, the Positive Registry and the LGPD form the triad of consumer protection laws and, when added to the credit bureaus' initiatives to reduce delinquency and prevent over-indebtedness, they pave the way for strengthening the consumer and, consequently, the entire economy.
ANBC Press Relations
Regina Pimenta: (11) 98136.6835 regina@pimenta.com
Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com
