BRAZIL Law and Practice Contributed by: João Areosa, Guilherme Peres de Oliveira and Raphael Rangel, Areosa Advogados
Financial institutions face substantial collective action exposure, with courts often finding violations and ordering restitution and corrective measures. Healthcare and Pharmaceuticals Collective actions address access to medications and treatments through the SUS; health plan coverage denials and contract rescissions; drug safety issues and product recalls; medical device failures and defects; hospital service quality and patient safety; and pandemic-related healthcare failures. Healthcare is a constitutionally protected right in Brazil, generating extensive litigation when access is denied. Telecommunications and Technology A great number of collective actions involve service interruptions and quality failures; billing errors and unauthorised charges; data privacy violations and security breaches; cybersecurity failures; consumer rights in 5G deployment; and internet neutrality issues. Telecommunications companies face frequent collec- tive actions, often involving considerable numbers of affected consumers. Product Liability Mass product defect cases increasingly use collective mechanisms for automotive defects and recalls (safe- ty systems, engine problems); consumer electronics failures; dangerous consumer products; food safety and contamination; cosmetics and pharmaceuticals causing harm; and the safety of children’s products. Increased Sophistication Trends in litigation practice include specialised plain- tiff associations developing expertise; greater use of economic and technical experts providing sophisti- cated analyses; co-ordination among multiple plaintiff groups across jurisdictions; learning from international collective litigation models; strategic use of media and public opinion to pressure defendants; and profes- sional litigation funding supporting complex cases. Defendants’ Response Evolution Defendants are developing proactive compliance programmes to prevent violations; implementing
early warning systems to identify potential collec- tive litigation risks; creating settlement protocols and strategies; investing in defence co-ordination across jurisdictions; using ADR strategically; and improving internal controls to address systemic issues. Judicial Capacity Development Courts are developing specialised expertise in col- lective actions; adopting case management protocols for complex litigation; using technology for efficiency; co-ordinating among jurisdictions to prevent conflict- ing judgments; and creating precedent through test case selection. Cross-Border Co-Ordination Increased co-ordination with foreign collective actions through parallel litigation in multiple countries on the same issues; information sharing among plaintiff groups internationally; co-ordinated settlement nego- tiations across jurisdictions; and recognition of foreign Key areas to watch include artificial intelligence and algorithmic accountability (bias, discrimination, trans- parency); cryptocurrency and decentralised finance regulation and consumer protection; climate change and environmental justice (emissions, adaptation, loss and damage); social media platform liability (content moderation, misinformation, user protection); supply chain transparency and labour conditions; cyberse- curity and data protection in interconnected systems; and evolving technology issues. The Brazilian collective action system continues evolving to address emerging challenges while main- taining its distinctive characteristics rooted in con- stitutional protection of collective rights and strong public enforcement mechanisms. The combination of public enforcement through the Public Prosecutor and private enforcement through associations, favourable procedural rules for plaintiffs, and active judicial man- agement creates a dynamic litigation environment that businesses operating in Brazil must navigate carefully. judgment issues. Looking Forward
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