New provisional measure providing for emergency actions related to the Covid-19 pandemic in the tourism and culture sectors is published

In brief

The new provisional measure was published in the Official Gazette, amending Law nº 14.046, of 24 August 2020, as to the emergency measures to mitigate the effects of the pandemic on the tourism and culture sectors.

More details

The new provisional measure amends Law nº 14.046/2020 and brings new specifications for postponements or cancellations of services, events and concerts that as a result of the COVID-19 pandemic should have happened or may happen between 1 January 2020 to 31 December 2022.

Stipulations regarding service providers or the business company not being required to refund the consumer  — as long as rescheduling of the event is ensured or the consumers can use the credit to purchase other services — remain. The new provisional measure also extends the deadline for using the credit to 31 December 2023, which is also considered the deadline for the rescheduling of postponed services, reservations and events. If such rescheduling and provision of credits is not feasible, then that is the only time service providers or the business company will be required to refund the consumers.

Meanwhile, in light of the above-mentioned deadline extension, artists, speakers or other professionals who hold the content and who were hired to perform or deliver services from 1 January 2020 to 31 December 2022 will also not be required to immediately give a refund. If this period is not observed, the amount received must be reimbursed, adjusted according to the National Wide Special Consumer Price Index – “IPCA-E”, until 31 December 2022 for cancellations made until 31 December 2021, and until 31 December 2023 for cancellations made from 1 January to 31 December 2022. Further, cancellation fees will be null for contracts that have been issued until 31 December 2022 but cancelled due to the social isolation measures adopted because of the COVID-19 pandemic.

The new provisional measure also revokes article nº 3 of Law nº 14.186/2021, specifically the part that amends the provisions of Law nº 14.046/2020 referring to the deadlines for rescheduling or use of credit, given that the new measure introduces new deadlines. Our Consumer Law team is at your disposal for further clarification.