SENACON and PROCON/MG actions


SENACON and PROCON/MG actions


Apart from the cases described above, other consumer protection entities also had active roles in cases involving breach and/or improper use or disclosure of personal data.

The National Consumer Secretariat (SENACON) imposed a fine to the site Decolar.com in the amount of R$ 7,5 million for offering different prices to hotel reservations depending on where the consumer was located (practice known as geo pricing) and for hiding the availability of accommodations to Brazilian consumers to benefit foreign consumers (practice known as geo blocking). SENACON considered such practices abusive and discriminatory, in clear violation of consumer laws that state that suppliers of goods or services are not allowed to:

·         deny requests from consumers to the exact extent of their stock availability;

·         deny sale of goods or services to whom is willing to purchase them on a cash basis;

·         increase the price of goods or services without just cause. 

In addition to the above mentioned fine, the company was ordered to immediately cease abusive and discriminatory practices, subject to having its operations suspended and the site shut down.

In another case involving misuse of personal data, the network of drugstores Drogaria Araújo received a fine in the amount of R$7 million imposed by Procon-MG for making discounts available to consumer only in case they informed their tax ID (CPF) at the time of the purchase, without giving any clear and appropriate information about their registration.

The order resulted from an inquiry involving the facts and the company’s refusal to adjust its conduct. According to the decision, this practice violates consumer’s right to clear and appropriate information about the service being offered, since the drugstore failed to properly inform consumers about its terms of use, privacy policy and risks to the program’s data security.

Data relative to purchases at a drugstore may reveal sensitive information about consumers’ health and life that may lead to abusive practices by companies. Diseases, mental problems and other sensitive information may be deduced based on purchase habits at drugstores and this information is not clearly provided to consumers. Therefore, a consumer, the party in disadvantage in this relationship, did not have the information required to properly consent to the collection of personal information in exchange for the discount.

According to the public prosecutor at the consumer protection court of the district of Belo Horizonte, Fernando Ferreira Abreu, “the main scope of the alleged rewards program is to collect consumers’ tax ID and not to establish a rewards or loyalty program, per se”, and this constitutes an abusive practice because discounts cannot be conditioned to the provision of personal information.

Pursuant to the decision, “constant collection of information concerning consumers purchase habits, performed in a concealed way and without prior information, poses great risk to consumers’ intimacy and private life, as well as subjects them to other risks of different kinds”.

The cases above are proof that the grace period of the LGPD has not been an impediment to investigations and to have companies held accountable for their actions, so much so that the operations that took place in 2018 represent a small sample of what is to come, in particular vis-à-vis the effectiveness of data protection regulations, in Brazil and abroad.