Procon-SP fined the company behind Shopee in Brazil over R$ 14 million due to unfair clauses in their platform service and lack of transparency on their site and apps. Marketplaces are expected to take joint responsibility for sales issues in the digital space.
What inspired the penalty
Research was initiated following an analysis of consumer complaints and a direct assessment of the platform’s structure. The findings indicated that Shopee did not meet the standards outlined in the Consumer Protection Code, particularly in terms of information transparency.
One key observation was the lack of crucial registration information conveniently displayed, a fundamental requirement for any e-commerce company. Procon also noted clauses in the terms of use that aimed to absolve the company from responsibility for product or service defects and shortcomings sold on the platform.
The lack of a clear definition of “abusive behavior” by users can make it difficult to predict when a unilateral contract termination may occur, potentially leading to arbitrary bans.
What comes next?
Procons do not have the authority to enforce immediate changes in service terms; instead, they can impose financial penalties. The company can defend itself thoroughly and appeal the decision.
Shopee has not yet made a formal statement on the matter, leaving room for potential action.
