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McPicanha case: is the law on advertising in Brazil as strict as abroad?

Hayden Walsh by Hayden Walsh
April 29, 2022
in News
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McPicanha case: is the law on advertising in Brazil as strict as abroad?
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The controversy over McPicanha, a McDonald’s sandwich that doesn’t have picanha, involved several Brazilian bodies, such as Procon, the Ministry of Justice and Public Security and Conar (National Council for Advertising Self-Regulation). In the end, the company apologized for the “mistake” and took the sandwich off the menu.

How would the authorities have reacted to the case if it had taken place in other countries? Does Brazil have a law as strict as the United States and Europe regarding advertising and consumer rights? experts heard by UOL consider that Brazilian law is at the same level as the best that exist abroad. What changes is the inspection, which here is decentralized. Find out more below.

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How was the reaction in Brazil?

After the information about the absence of picanha at McPicanha became public, several organs came into the picture.

First, Procon-SP notified McDonald’s, asking for clarification on the composition of the snack and a copy of the publicity materials released. The deadline for submitting the documents ends on Monday (2).

Afterwards, the Ministry of Justice and Public Security also asked for explanations, to investigate the possible practice of false advertising. You gave McDonald’s ten days to send the information.

In addition, Conar decided to open an ethical lawsuit against McDonald’s to verify the “truthfulness of the advertising message” in the case. The body is made up of members of civil society, such as TV stations, advertisers and the press.

Procon and the ministry have the power to impose fines on the company, if they deem it necessary. Conar, on the other hand, can only suggest the suspension or alteration of advertisements.

Brazilian law is similar to that of developed countries

Vitor Boaventura, a lawyer specializing in consumer law and a partner at Ernesto Tzirulnik Advocacia, says that advertising controls tend to be very similar across countries.

In the vast majority of countries, the paradigm is similar to that of Brazil, valuing transparency and the dissemination of true information. In any country in the world, false advertising has a very strict treatment.
Victor Boaventura, lawyer

The level is also similar in relation to consumer law, says Maristela Basso, professor of international and comparative law at USP (University of São Paulo) and partner at Nelson Wilians Advogados.

The Brazilian Consumer Defense Code has the most modern in the world, it is adequate. It is in line with developed countries, which means that the consumer is well protected in Brazil.
Maristela Basso, professor at USP

What is different is the supervision.

What changes from one country to another is the structure that regulates and supervises advertisements, experts say.

Valdir Rocha, partner in the area of ​​intellectual property, advertising and franchising at Veirano Advogados, explains that almost all Latin American countries have a body similar to Conar. In other words, self-regulation prevails.

In the United States and in European countries, however, it is different.

In the US, there is a body that creates the rules, supervises and punishes violating companies, the FTC (Federal Trade Commission, or federal trade commission). In the UK, there is a similar body, the ASA (Advertising Standards Authority).

“In the European Union, there is a community standard, but each country also creates its own rules for monitoring advertising”, he says.

This means that, in these places, the body that inspects is the same that applies the fines.

In Brazil, three different bodies will talk, for example, about McPicanha: Conar, Procon and the Ministry of Justice. A federal body like the FTC would be ideal to centralize everything.
Valdir Rocha, lawyer

‘Conar has moral authority’

Despite not imposing fines, Conar has developed a kind of “moral authority” in the advertising market, which makes the control of advertisements rigid, says Luiz Cavalheiros, a professor at ESPM (Escola Superior de Propaganda e Marketing) and partner at the consultancy Parangolé do Know.

When Conar says to take the advertisements off the air, the companies take them down.
Luiz Cavalheiros, professor at ESPM

“Conar is more rigid than in the United States. There, for example, companies can cite competitors in advertisements, not here. Conar, together with Procon and the Consumer Defense Code, guarantees one of the protection in the world. It’s one of the best there is”, he says.

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Hayden Walsh

Hayden Walsh

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