Dispute Resolution; Tech | Brazilian Civil Code Reform Imposes Liability On Digital Platforms For User-Generated Content

Under discussion in the Brazilian Senate, the proposal to amend the Brazilian Civil Code may impose liability on platforms for user-generated content.

If approved under these terms, it will represent an increase in legal uncertainty for platforms and companies that operate in digital media, as well as the need to adopt measures to comply with the new obligations imposed. 

Nowadays, the Internet Civil Act (Law 12,965/2014) limits the liability of digital platforms to non-compliance with a court order that determines the removal of content considered illegal or offensive. However, this legal provision has already been questioned before the Brazilian Supreme Court (STF), in other bills (as in the case of the Fake News Bill), and now also in the proposed amendment of the Brazilian Civil Code.

If approved, the new Brazilian Civil Code will impose on digital platforms:

1. The adoption of due diligence measures to mitigate and prevent the circulation of illicit content, through content moderation;

2. The provision of effective complaint mechanisms and full damages compensation, so that those affected by unlawful content can notify the platform, via a reporting channel, in their local language, and be notified of the outcome of their complaint;

3. The duty to remove content, once demonstrated its potential illegality, upon notification of the interested party, under penalty of fine and possible compensation to the injured party. 

This possible change in the liability rule for digital platforms will result in the need to adapt internal content moderation procedures, create effective reporting channels and act quickly in responding to removal requests, to avoid liability. In addition to the costs involved, such paradigm shift should imply a reduction in freedom of expression for online users, especially in cases where the non-compliance of the content is not blatant.

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