Consumer Defense Code

The Consumer Defense Code (CDC) of Brazil, english for "Código de Defesa do Consumidor", enacted by former president Fernando Collor, on September 11, 1990 as Federal Law No. 8.078, establishes comprehensive norms for consumer protection. It characterizes consumer rights as issues of public order and social interest, ensuring that products and services offered in the market do not pose risks to consumers’ health or safety. The Code provides a detailed regime of sanctions and administrative infractions for suppliers who violate its provisions, as well as procedural rules for both administrative and judicial enforcement of consumer rights. In line with the principle of lex specialis, the Code takes precedence over the Civil Code in matters of consumer relations. Before this law, consumer rights in Brazil were scattered across isolated statutes.

Brief History

The Brazilian Consumer Defense Code emerged from the broader democratization process, when the 1988 Federal Constitution elevated the consumer protection to a fundamental right, mandating in Article 5, section XXXII:

Art. 5th All are equal before the law, without distinction of any nature, guaranteeing Brazilians and foreigners residing in the country the inviolability of the right to life, liberty, equality, security and property, under the following terms:

[...]

XXXII - the State shall promote, in accordance with the law, consumer protection;

In the years that followed its enact, successive administrations have reinforced the Consumer Protection Code with fresh decrees and regulations, keeping it up to date despite the need for continual additions to address the swift pace of technological change. At its inception, many everyday concepts were unheard of in Brazil: there was no internet or fiber-optic broadband, mobile phones were a novelty, and digital platforms like fintechs, healthtechs, e-commerce sites, and online marketplaces simply didn’t exist. Electronic fuel injection was cutting-edge, electric vehicles belonged in science fiction, and terms such as smartphones, payroll-deduction loans, or streaming services were outside most people’s vocabulary. Today, the Code is again evolving to cover emerging issues like data privacy, artificial intelligence, and the gig economy - showing that consumer protection remains a dynamic, forward-looking field.

Throughout the 1990s and into the early 2000s, the CDC’s legal mandates sparked a profound transformation in the market. Manufacturers overhauled quality-control processes, retailers and service providers revamped customer-service standards, and regulatory bodies like PROCON gained real enforcement power. As a result, Brazilian consumers began to enjoy higher product safety, more transparent contracts, and faster dispute resolution-shifting the balance of power toward end users and setting the stage for today’s ongoing dialogue about digital rights, data privacy, and new business models.

Basic Definitions

The most important definitions are all set out in Articles 2nd and 3rd of the code.

What is considered a consumer?

Art. 2nd Consumer is any natural or legal person who acquires or uses a product or service as the final recipient. Sole paragraph. The collective of people, even if undetermined, who have intervened in consumer relations is considered a consumer.

And what about the supplier?

Art. 3rd Supplier is any natural or legal person, public or private, national or foreign, as well as depersonalized entities, that develop activities of production, assembly, creation, construction, transformation, import, export, distribution or commercialization of products or provision of services.

Okay, and a product or a service?

§ 1st Product is any good, movable or immovable, material or immaterial. § 2nd Service is any activity provided in the consumer market, for remuneration, including those of a banking, financial, credit and security nature, except those arising from labor relations.

Basic Rights

Brazilian consumers are safeguarded by a set of fundamental rights enshrined in the Article 6th of the CDC, which aim to balance the consumer-business relationship and ensure dignified treatment at every stage of purchasing and using products and services:

Art. 6th The basic rights of the consumer are:

I - the protection of life, health and safety against risks caused by practices in the supply of products and services considered dangerous or harmful;

II - the education and dissemination on the appropriate consumption of products and services, ensuring freedom of choice and equality in hiring;

III - the adequate and clear information about the different products and services, with correct specification of quantity, characteristics, composition, quality, applicable taxes and price, as well as the risks they present;

IV - the protection against misleading and abusive advertising, coercive or unfair commercial methods, as well as against abusive or imposed practices and clauses in the provision of products and services;

V - the modification of contractual clauses that establish disproportionate payments or their review due to supervening facts that make them excessively onerous;

VI - the effective prevention and repair of individual, collective and diffuse patrimonial and moral damages;

VII - the access to judicial and administrative bodies with a view to preventing or repairing patrimonial and moral damages, whether individual, collective or diffuse, ensuring legal, administrative and technical protection to those in need;

VIII - facilitating the defense of their rights, including the reversal of the burden of proof in their favor in civil proceedings, when, at the judge's discretion, the allegation is plausible or when they are at a disadvantage, according to the ordinary rules of experience;

XI - (Vetoed);

X - the adequate and effective provision of public services in general;

XI - the guarantee of responsible credit practices, financial education and prevention and treatment of over-indebtedness situations, preserving the existential minimum, in accordance with the regulations, through the review and renegotiation of debt, among other measures;

XII - the preservation of the existential minimum, in accordance with the regulations, in the renegotiation of debts and in the granting of credit;

XIII - the information about the prices of products per unit of measurement, such as per kilo, per liter, per meter or per other unit, as applicable.

Last but not least, the next article establishes that the rights it provides are not exhaustive, allowing for other legal guarantees from various national and international regulatory sources. This openness reinforces the principle of maximum consumer protection, preventing gaps in the law from being interpreted to the detriment of the rights of users of goods and services, as brought on the Article 7th:

Art. 7th The rights provided for in this code do not exclude others arising from international treaties or conventions to which Brazil is a signatory, from ordinary domestic legislation, from regulations issued by competent administrative authorities, as well as those derived from general principles of law, analogy, customs and equity.

Consumer Protection

Against Abusive Practices

Abusive practices in consumer relations are prohibited by consumer law, subjecting the supplier who commits them to applicable civil and criminal sanctions.

The Article 39 lists a series of common abusive practices prohibited in consumer relations, but the main section of the article specifies that it is only an exemplary list of conduct, recognizing that there may be other abusive situations to be analyzed in the specific case:

Art. 39. Suppliers of products or services are prohibited from, among other abusive practices:

I - condition the supply of a product or service to the supply of another product or service, as well as, without just cause, to quantitative limits;

II - refuse to meet consumer demands, to the exact extent of their stock availability, and also in accordance with customs and practices;

III - send or deliver to the consumer, without prior request, any product, or provide any service;

IV - take advantage of the consumer's weakness or ignorance, taking into account their age, health, knowledge or social status, to force their products or services on them;

V - demand a manifestly excessive advantage from the consumer;

VI - perform services without prior preparation of a quote and express authorization from the consumer, except for those arising from previous practices between the parties;

VII - pass on derogatory information, referring to an act carried out by the consumer in the exercise of his rights;

VIII - placing on the consumer market any product or service that does not comply with the standards issued by the competent official bodies or, if specific standards do not exist, by the Brazilian Association of Technical Standards or another entity accredited by the National Council of Metrology, Standardization and Industrial Quality (Conmetro);

IX - refuse to sell goods or provide services directly to anyone willing to purchase them upon immediate payment, except in cases of intermediation regulated by special laws;

X - raise the price of products or services without just cause.

XI - Device included by MPV No. 1,890-67, of 10/22/1999, transformed into item XIII, upon conversion into Law No. 9,870, of 11/23/1999

XII - fail to stipulate a deadline for fulfilling its obligation or leave the determination of its initial term to its sole discretion.

XIII - apply a formula or adjustment index other than that legally or contractually established.

XIV - allow entry into commercial or service establishments of a greater number of consumers than that set by the administrative authority as a maximum.

Sole paragraph. The services provided and the products sent or delivered to the consumer, in the case provided for in item III, are equivalent to free samples, and there is no obligation to pay.

Then, the Article 40 stipulates that, before performing any service, the supplier must present the consumer with a detailed quote. The quote is binding on the supplier; that is, they must comply with the proposal, unless further negotiation is undertaken.

Art. 40. The service provider shall be obliged to provide the consumer with a prior quote detailing the cost of labor, materials and equipment to be used, payment conditions, as well as the start and end dates of the services.

§ 1st Unless otherwise stipulated, the estimated amount will be valid for a period of ten days, counting from its receipt by the consumer.

§ 2nd Once approved by the consumer, the budget is binding on the contracting parties and can only be changed through free negotiation between the parties.

§ 3rd The consumer is not liable for any charges or additions arising from the contracting of third-party services not provided for in the prior budget.

Concluding this section, the Article 41 deals with sanctions for abusive practices involving the supply of specific products or services that are subject to price control:

Art. 41. In the case of supplying products or services subject to the price control or pricing regime, suppliers must respect the official limits, under penalty of not doing so, being liable for the refund of the amount received in excess, monetarily updated, and the consumer may demand, at his/her choice, the cancellation of the transaction, without prejudice to other applicable sanctions.

Against Abusive Clauses

As well as the Articles 39, the Article 51 specifies the exemplary list of abusive clauses that are null by right, but recognizing that other types of abuse may exist, always leaning towards consumer protection:

Art. 51. The following contractual clauses relating to the supply of products and services are null and void, among others:

I - preclude, exempt, or mitigate the supplier's liability for defects of any nature in the products and services, or imply a waiver or disposal of rights. In consumer relations between the supplier and the legal entity consumer, compensation may be limited in justifiable situations;

II - deprive the consumer of the option to refund the amount already paid, in the cases provided for in this code;

III - transfer responsibilities to third parties;

IV - establish obligations considered unfair, abusive, which place the consumer at an exaggerated disadvantage, or are incompatible with good faith or equity;

V - (Vetoed);

VI - establish a reversal of the burden of proof to the detriment of the consumer;

VII - determine the compulsory use of arbitration;

VIII - impose a representative to conclude or carry out another legal transaction on behalf of the consumer;

IX - give the supplier the option of concluding or not the contract, although obliging the consumer;

X - allow the supplier, directly or indirectly, to vary the price unilaterally;

XI - authorize the supplier to cancel the contract unilaterally, without the same right being granted to the consumer;

XII - oblige the consumer to reimburse the costs of collecting their obligation, without the same right being granted to them against the supplier;

XIII - authorize the supplier to unilaterally modify the content or quality of the contract, after its conclusion;

XIV - violate or enable the violation of environmental standards;

XV - are in disagreement with the consumer protection system;

XVI - allow the waiver of the right to compensation for necessary improvements.

XVII - condition or limit in any way access to the Judiciary bodies;

XVIII - establish grace periods in the event of late payment of monthly payments or prevent the full restoration of the consumer's rights and means of payment after the default is cleared or an agreement is reached with creditors;

XIX - (Vetoed).

The exaggeration mentioned in section III is explained by the First Paragraph of the same article:

§ 1st The advantage is presumed to be exaggerated, among other cases, if:

I - offends the fundamental principles of the legal system to which it belongs;

II - restricts fundamental rights or obligations inherent to the nature of the contract, in such a way as to threaten its object or contractual balance;

III - is excessively burdensome for the consumer, considering the nature and content of the contract, the interests of the parties and other circumstances specific to the case.

But, the code states, on the Second Paragraph of the same article, that the annulled clause does not invalidate the entire contract, unless without it is not possible to maintain the agreement due to excessive burden on either party:

§ 2nd The nullity of an abusive contractual clause does not invalidate the contract, except when its absence, despite integration efforts, results in an excessive burden on either party.

Credit providers also have specific obligations to comply with, especially on the Article 52, informing the consumer about the details of the transaction:

Art. 52. When providing products or services that involve granting credit or financing to the consumer, the supplier must, among other requirements, inform the consumer in advance and adequately about:

I - price of the product or service in national currency;

II - amount of default interest and the effective annual interest rate;

III - legally provided additions;

IV - number and frequency of installments;

V - total sum to be paid, with and without financing.

§ 1st Late payment fines resulting from non-fulfillment of obligations within their term may not exceed two percent of the value of the installment.

§ 2nd The consumer is guaranteed early settlement of the debt, in whole or in part, through a proportional reduction in interest and other charges.

§ 3rd (Vetoed);

Concluding this section, the Article 53 deals with abusive clauses involving real estate purchase and sale contracts and consortia in general:

Art. 53. In contracts for the purchase and sale of movable or immovable property through payment in installments, as well as in fiduciary transfers as collateral, clauses that establish the total loss of the installments paid in favor of the creditor who, due to non-payment, requests the termination of the contract and the repossession of the product sold, are considered null and void.

§ 1st (Vetoed);

§ 2nd In contracts under the durable goods consortium system, the compensation or refund of the installments paid, as per this article, will be discounted, in addition to the economic advantage gained from the enjoyment, the losses that the withdrawer or defaulter causes to the group.

§ 3rd The contracts referred to in the caput of this article will be expressed in national currency.

Legal Warranty

In Brazil, the warranty periods established by the consumer code are directly related to the type of product or service purchased and the nature of the defect presented, and the Article 24 says that the legal warranty doesn't depend on a express term nor it could be exempted:

Art. 24. The legal guarantee of suitability of the product or service is independent of any express term, and the supplier's contractual exemption is prohibited.

The Article 26 of the CDC states that consumers have the right to complain about apparent or easily detectable defects within 30 days for non-durable goods and services, such as food, cosmetics, or cleaning products, which are consumed by its nature. For durable goods and services like appliances, vehicles, or furniture, for example, the period is 90 days. These deadlines begin from the actual delivery of the product or the completion of the service:

Art. 26. The right to complain about apparent or easily detectable defects expires in:

I - thirty days, in the case of provision of services and non-durable products;

II - ninety days, in the case of provision of services and durable products.

Additionally, once a formal complaint is made to the supplier, the deadline is suspended until a clear and definitive response is provided. This suspension ensures that the consumer is not penalized by delays in the analysis or resolution of the issue:

§ 1st The counting of the limitation period begins from the effective delivery of the product or the completion of the execution of the services.

§ 2nd The following prevent forfeiture:

I - the complaint demonstrably made by the consumer to the supplier of products and services until the corresponding negative response, which must be transmitted unequivocally;

II - (Vetoed);

III - the initiation of a civil inquiry, until its conclusion.

It’s important to note that these deadlines refer to the so-called legal warranty, which exists regardless of any contract or additional terms. Even if the supplier offers a contractual or extended warranty, the legal warranty remains valid and mandatory. Once the legal period expires without any action from the consumer, the right to claim for the defect is lost, except in exceptional cases provided by law. However, when the defect is hidden, that is, not immediately noticeable, the period begins when the defect becomes evident to the consumer:

§ 3rd In the case of a hidden defect, the limitation period begins at the moment the defect becomes evident.

The warranty against hidden defects is one of the most important consumer protection tools, as it acknowledges that not all problems in a product or service are perceptible at the time of purchase. Unlike apparent defects, which can be identified shortly after use, hidden defects only manifest over time - such as structural failures in vehicles, issues in heating systems that emerge only in winter, or malfunctions in electronics that arise after continuous use. Besides the obligation of a legal warranty of 30 or 90 days, the code authorizes an additional contractual warranty, dependent on an express term:

Art. 50. The contractual warranty is complementary to the legal warranty and will be granted by means of a written document. Sole paragraph. The warranty term or equivalent must be standardized and adequately clarify the terms of the warranty, as well as the form, term, and place where it may be exercised, and the costs to be borne by the consumer. It must be delivered to the consumer, duly completed, by the supplier, at the time of delivery, accompanied by an instruction manual for installation and use of the product in educational language, with illustrations.

This additional warranty is very common, for example, when the consumer is acquiring a household appliance, the common period is 1 year. That said, since the consumer code states that all the contratual clauses should be interpreted in favor of the consumer, if the supplier does not specify that the 1-year contractual warranty includes the 90-day legal warranty, the total warranty period will be 1 year and 90 days.

Right to Repent

Unless otherwise specified by the product or service provider, Brazilian consumers do not have the right to return products purchased in a physical store due to their own change of heart. However, they have the right to cancel the contract within 7 days of signing up for the service or receiving the product by mail, provided the acquisition has occurred outside the store, as presente on the Article 49:

Art. 49. The consumer may withdraw from the contract within 7 days from the date of signature or receipt of the product or service, whenever the contract for the supply of products and services occurs outside the commercial establishment, especially by telephone or at home.

The exercise of the right to repent is the consumer's prerogative, and the amounts must be returned immediately and monetarily updated, if necessary:

Sole paragraph. If the consumer exercises the right of withdrawal provided for in this article, any amounts paid, for any reason, during the cooling-off period will be immediately refunded, monetarily adjusted.

For example, if you go to a dealership and buy a vehicle, you don't have the right to change your mind. If you call the same dealership, buy the vehicle, and have it delivered to your home, you have the right to return it in the next 7 days.