BRAZIL – The Department of Consumer Protection and Defense (DPDC), a department under the Ministry of Justice of Brazil, fined Casas Bahia, Magazine Luiza, Ponto Frio (Globex), Ricardo Eletro, Lojas Insinuante and Fast Shop for their abusive practices in product sales.

The fines were imposed as these companies marketed products along with warranties and additional services not ordered by the consumer. Casas Bahia, Magazine Luiza and Ponto Frio (Globex) were fined R $ 7’248,147 each, while Ricardo Eletro, Lojas Shop Fast Insinuante and received each a fine of R $ 2’416,049.

The investigation began in 2012 due to complaints by consumer protection agencies against Casas Bahia regarding the irregular sale of extended warranty insurance, and value-added services, such as dental plans. After several consultations the DPDC expanded the investigation to other retailers.

According to the director of DPDC, Amaury Oliva, it is the obligation of supplier to inform, enlighten and guide consumers on all products and services offered. “We can not allow companies to take advantage of the vulnerability of consumers and include warranties and unsolicited services in the sale. Regarding the extended warranty insurance, consumers should be aware: Do not substitute the warranty provided in the Consumer Protection Code. This warranty is a consumer’s right and an obligation of the provider”, said the Director.