BRAZIL Law and Practice Contributed by: João Areosa, Guilherme Peres de Oliveira and Raphael Rangel, Areosa Advogados
Collective Action Code Proposals Multiple bills propose a unified Collective Action Code to consolidate scattered legislation across multiple statutes; harmonise procedural rules and eliminate contradictions; address gaps and ambiguities in cur- rent law; modernise procedures considering digital environment; clarify res judicata rules and territorial scope issues; and establish clearer rules for co-ordi- nation among related actions. These proposals, however, face resistance from vari- ous stakeholders with different views on optimal col- lective litigation rules. Consensus has proven elusive. Improved Co-Ordination Mechanisms Reform proposals aim to enhance communication among courts handling related collective actions in different jurisdictions; establish clearer rules for con- solidation and transfers; create specialised collective action chambers in appellate courts; implement case management protocols for complex collective litigation; and improve the National Registry of Collective Actions. Individual Homogeneous Rights Reforms Debates focus on clarifying procedures for individual damage quantification and execution; improving noti- fication to potential beneficiaries about their rights; streamlining execution processes to reduce delays in victims receiving compensation; addressing unclaimed amounts more efficiently; and enhancing fluid recovery mechanisms to ensure community benefit. Current procedures can be cumbersome, and reforms seek greater efficiency. Digital Platform Regulation Pending legislation addresses liability of digital plat- forms, marketplaces and social networks, which will impact collective actions involving consumer protec- tion violations on platforms; data privacy breaches; content moderation and harmful content; e-commerce disputes; and platform worker rights. The platform economy requires updated legal frame- works.
Modernisation of Consumer Defence Code Proposals to update the CDC include adapting to e-commerce and online transactions; addressing plat- form economy and sharing economy issues; improv- ing collective action mechanisms; and protecting con- sumers from emerging vulnerabilities. The CDC, enacted in 1990, requires modernisation to reflect the realities of contemporary commerce. Litigation Funding Regulation Discussions about regulating third-party litigation funding include disclosure requirements for funding arrangements; ethical standards for funders and fund- ed parties; potential funder liability issues; fee limita- tions or transparency requirements; and conflicts of interest rules. No comprehensive regulation has been enacted, leav- ing the practice largely unregulated. Settlement Incentives Reform proposals encouraging early settlement include tax incentives for defendants settling collec- tive actions early; streamlined TAC procedures with faster negotiation; enhanced mediation programmes with trained mediators; settlement windows in litiga- tion with stay of proceedings; and reduced penalties for early settlement. Judicial System Improvements Broader judicial reform efforts include increasing judi- cial staffing and resources to reduce backlogs; invest- ing in technology for case management efficiency; improving training for judges in complex litigation and case management; specialising judges in areas including collective actions; and reducing procedural complexity to accelerate proceedings.
5. Key Trends 5.1 Impact of Key Trends Digital Rights and Data Protection
The LGPD’s implementation has generated significant collective litigation involving data breaches affect- ing millions of consumers (major incidents at retail- ers, healthcare providers and financial institutions);
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