CONSUMER LAW | LAW 14.046/2020 ESTABLISHES RULES FOR CANCELATION OF BOOKINGS IN THE TOURISM AND CULTURE SECTORS

Law No. 14.046 was published on August 25, 2020, resulting from Provisional Measure No. 948/2020, to establish rules for the cancelation of services and bookings of events in the tourism and culture sectors in view of the COVID-19 pandemic.

The rule exempts suppliers from refunding consumers in case of booking and event cancelations, as long as they ensure:

a) rescheduling of services within 18 (eighteen) months upon the end of the public calamity situation;

b) availability of credits for consumers to purchase another booking or event from the same company with a 12-(twelve) month expiration period;

Regardless of the supplier’s chosen alternative, consumers will not be subject to additional costs once they request cancelation within 120 (one hundred and twenty) days of the communication of the postponing or the cancellation of services, or 30 (thirty) days before the event, whatever happens first.

The obligations of the new legislation also apply to events that will need to be postponed again because of the public health emergency maintenance and to new events during such period.

Artists contracted for canceled events are not obliged to refund the contracting party either, once the event is rescheduled within 12 (twelve) months after the end of pandemic.

The new Law also regulates the cancelation of events and bookings in the pandemic context as fortuitous event or force majeure, thus not applying moral damage, fines or other penalties due to the cancelations.

Source: Federal Official Gazette, August 25, 2020. No. 163. Section 1 – page 4.