The Brazilian Internet Civil Act (Federal Law 12.965/14) regulates the use of the Internet and applications in Brazil.
See below 4 points of attention for Brazilian and foreign companies doing business in Brazil with respect to such regulation:
1. Liability of companies for user-generated content. According to the Brazilian Internet Civil Act, companies can only be held liable for user content (such as posts, comments, reviews) if they fail to comply with a court order ordering the removal (judicial notice and take down).
Currently, this is the majority position in Brazilian case law, but such limitation of liability will be discussed before the Brazilian Supreme Court (STF) and there may be a change of understanding. According to the reporting minister, the case should go to trial in the coming months.
2. Supervision of personal data protection. Since the creation of the Brazilian Data Protection Authority (ANPD), only one (1) fine has been imposed on a private company for non-compliance with the Brazilian General Data Protection Law (LGPD), due to improper processing of personal data. ANPD’s position to impose such a sanction was a warning sign that the authority understands that companies already had time to adjust to LGPD and the tendency is for supervision to intensify, giving rise to new fines applied to private entities.
3. Legal Framework for Artificial Intelligence (Bill). In a legislative process similar to which resulted in the Brazilian Internet Civil Act and the LGPD, a bill to regulate artificial intelligence in Brazil is being discussed in the Brazilian Senate, which aims to increase the level of reliability and legal security, as well as allow the attraction of investments. The bill is expected to be presented in the Senate in the coming months and later sent to the Brazilian Chamber of Deputies.
The text under discussion is similar to the regulatory proposal under discussion in the European Union. For companies, the law must establish standards for data collection, liability for automated decision-making, implementation of measures to correct discriminatory trends, commitment to security, among others.
4. Fake News Bill. The central point of the bill is the moderation of content published on the Internet, so that user-generated content considered offensive can be identified, deleted or flagged. A new version of the text should be presented in the coming months, aiming to reach greater agreement for voting in the Brazilian Congress.
If approved, the law would affect companies that manage social media, search engines and instant messaging services. The law should not affect e-commerce companies, video or voice closed meeting platforms, or online gaming and betting companies.
It is important that companies and financial institutions to be aware of new laws that emerge to regulate activities in the digital environment in Brazil and the interpretations that are given by the Brazilian Judiciary to existing laws, to guide their conduct in order to avoid liability.
