Law No. 13,874/19 which established the Declaration of Rights of Economic Freedom,[1] was enacted in order to address many claims of the business community to improve the business environment in Brazil. Among the principle based provisions and legislative changes, it should be highlighted the new rules inserted into the Civil Code relating to investment funds,[2] in particular the possibility of limiting the liability of quotaholders and service providers of the investment fund.

Two ordinances amended the rules governing recall campaigns in Brazil earlier this half of the year. The standards modernize the regulations of the procedure imposed by the Consumer Protection Code (article 10, paragraphs 1 and 2) whenever the supplier becomes aware of the possibility of having introduced into the Brazilian market a product or service that poses a risk to the health or safety of the consumer.

The Brazilian Securities and Exchange Commission (CVM) and the Superior Court of Justice (STJ), in two decisions in the first half of the year, made it clear that hotel operators may only be held liable for irregularities or damages in the offering of condo hotels if they participated actively in the efforts to sell the ideal fractions to buyers.

In order to encourage the creation of new jobs and inject money into the market, the Ministry of Economy plans to present a package of measures that, among other actions, authorizes the replacement of funds paid by employers as appeal deposits with judicial performance bonds.[1]

Law No. 13,874/19, enacted on September 20 after the conversion into law of the Economic Freedom Executive Order (MP 881/19), amended various points of labor and employment laws with the main objective of reducing bureaucracy in the procedures to be followed by employers.

In prior articles, we discussed some preventive measures that startups can take to adjust their internal procedures and thereby avoid possible breaches of labor laws and regulations. Startups may, however, face labor claims filed by their former employees or even by third parties who were not even their direct contractors.