Bolsonaro Sanctions Law Regulating Cancellations of Events and Travel in Pandemic

RIO DE JANEIRO, BRAZIL – Through a veto, President Jair Bolsonaro sanctioned a law that regulates the effects of deferment and cancellation of services, reservations, and events in the tourism and culture sectors due to the state of public calamity caused by the novel coronavirus pandemic.

The law, which originated as a Provisional Measure issued in April, was published in the Federal Official Gazette (DOU) on Tuesday, August 25th.

Among the facilities granted, the law exempts tourism and culture businesses from immediate reimbursement to frustrated clients for events and services canceled because of the pandemic.

Rather than returning the funds it received, the enterprise may choose between options: reschedule the canceled services, reservations, or events; offer credit for use or discount in the purchase of other services from the same business; or enter into an alternative arrangement with the consumer.

The law states that the providing of a service – a hotel accommodation or a show, for instance – may be rescheduled within one year after the end of the public calamity situation. The same deadline applies for the use of credit granted to the client when this is the solution chosen.

According to the statute, the rescheduling of deferred events must take place within 12 months from the end of the public calamity, which is expected to be on December 31st, 2020.

Should the company and consumer agree upon a refund, this may also be returned within one year after the end of the pandemic and, in either case, whether rescheduling or credit, the negotiations may not include additional costs, fees, or fines for the consumer, provided that the request is made within 120 days from the notification of deferral or cancellation of services or within 30 days prior to the date scheduled for the deferred event, whichever occurs first.

The new rules apply to tourism services, such as accommodation, travel agencies, tourist transportation, event organizers, theme parks and cultural centers, such as movie theaters, theaters, digital platforms for online ticket sales and artists, as well as commercial establishments such as restaurants, bars, and venues for conventions and shows.

Bolsonaro vetoed the section passed by legislators that exempted suppliers from any form of compensation if customers failed to request it within the time frames established by law or did not fit into one of the cases of the agreement provided for in the regulation.

According to the veto justification, by exempting suppliers from any form of compensation due to the client’s request not having been made within the established deadline, the measure “may give rise to a violation of the objectives and principles of the National Policy on Consumer Relations, particularly with respect to consumer vulnerability.”

In addition, the government claims that the provision is at odds with the principle of prohibiting unjust enrichment, “by enabling non-compliance with negotiations between the parties”.

Source: Estadão Conteúdo