The city is filled with an exciting energy, with stores promoting “Must-See Stories!” and shoppers getting ready for a big shopping spree. But alongside tempting discounts, there is also a risk of scams and unethical behavior.
Lawyers who specialize in protecting consumer rights play a crucial role in this aspect.
This article explores the history and impact of Black Friday, discussing consumer rights and how the Consumer Protection Code helps lawyers better assist their clients during this time.
What is Black Friday?
Black Friday is an American tradition that signals the start of the holiday shopping season and is typically observed on the Friday after Thanksgiving.
Short account of the past
The term “Black Friday” first appeared in the 1950s and 1960s to depict the crowded and disorderly conditions in streets and shopping centers caused by a surge in shoppers.
The term “black” in the name indicated that traders shifted from losses (“red”) to profits (“black”) in their financial records. It started as a small-scale occurrence and grew into a widespread trend, with retailers providing notable price reductions to entice shoppers.
Promotions became increasingly competitive with the rise in sales, transforming Black Friday into a widely acknowledged global shopping event and one of the most significant annual shopping days.
Economic effects in Brazil and globally
Black Friday in the United States saw sales totaling billions of dollars, reaching a record high of $9.8 billion in 2023. In contrast, Black Friday sales in Brazil experienced a decline.
In 2022, there was a 25% decrease, and a partial Neotrust report suggests a 13.1% drop in 2023, indicating Brazilian consumers’ hesitance due to economic instability and skepticism of promotions.
The date continues to be crucial for commerce, whether online or in physical stores, showcasing the high level of activity and anticipation from both consumers and retailers.
Consumer protections on Black Friday
The Consumer Protection Code is crucial for consumer defense in Brazil as it safeguards fundamental rights and builds customer trust through a strong defense strategy. Proficiency in the CDC is essential for effective consumer advocacy.
Basic rights that consumers have
- Proper and clear information about various products and services, including details on quantity, characteristics, composition, quality, taxes, price, and associated risks – Article 6, Section III.
- Providers of durable or non-durable consumer products are collectively responsible for any defects that render the products unsuitable for their intended use or diminish their value.
- The consumer has the option to cancel the contract within 7 days of signing or receiving the product or service, if the transaction takes place outside the commercial establishment, such as over the phone or at home.
Abusive practices commonly observed on Black Friday
The CDC establishes specific rules to safeguard consumers from such mistreatment by categorizing them:
Misleading promotion
Promising discounts that do not exist or are overstated is a practice that directly goes against consumer rights.
Article 37 of the CDC characterizes misleading advertising as any commercial message that contains false information or leads consumers to be mistaken about the details of products or services.
In such situations, it is important to collect evidence showing dishonesty or the potential to mislead the information provided in order to establish the supplier’s intent to deceive the consumer for unfair gain.
Fake promotions or inflated prices
Returns happen when products are priced higher right before a sale, making the discount seem larger than it actually is. This practice may violate Article 39, section V, which prohibits consumers from being given an excessively advantageous deal.
Price history analysis can serve as a useful method to demonstrate an unjustified price hike, by comparing past price records with those during a promotional period. Lawyers should ask for price data pre-promotion for this purpose.
Marriage clearance
A tie-in sale happens when a supplier requires the purchase of one product or service in order to buy another, usually without the consumer’s choice or necessity.
This practice is against the law as it goes against Article 39, section I, which forbids placing conditions on the purchase of a product or service that compel the consumer to buy something they do not want.
Proponents should gather proof like agreements, receipts, and testimonies from impacted consumers. Collaborating with consumer protection organizations and carrying out market investigations can strengthen the argument against unethical sales tactics, guaranteeing that offenders are legally penalized.
Consumer protection performance
Consumer defense experts have the main responsibility of guaranteeing fair and secure purchasing experiences, safeguarding customer rights, and encouraging transparent and just business conduct.
To provide this protection, attorneys need to:
- Offer comprehensive legal guidance regarding consumer rights and the appropriate steps to take in instances of fraud or misconduct, assisting in pinpointing deceptive behaviors and aiding in the collection of evidence required for legal recourse.
- Legal actions are taken to rectify the harm incurred, such as receiving a refund, exchanging the product, or being compensated for further losses.
- Facilitate conflict resolution between customers and vendors in a friendly and efficient manner through mediation and reconciliation to reach mutually beneficial agreements and prevent prolonged disputes.
Lawyers participating in Black Friday
Black Friday is a frequently troublesome occasion that requires top-notch legal assistance. Here are some typical scenarios and the recommended actions.
- The standard product policy allows customers to request an exchange, refund, or compensation for any damages caused by a faulty item.
- Correcting inaccurate charges to ensure reimbursement of any overpaid amounts and prevent further financial harm to the consumer.
- Ensure that the customer receives the warranty support and coverage as advertised, which includes repairs, replacements, or refunds.
It is crucial for attorneys to stay current on market practices and laws to provide top-notch guidance and defense to clients in the face of challenges.
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