Brazil's National Consumer Secretariat (Senacon) has initiated a formal administrative process against the digital platform 99 Food for allegedly failing to comply with new transparency regulations. The company faces a potential fine of up to R$ 14 million for not clearly disclosing the breakdown of payments to restaurants and couriers. This action signals a significant step in the government's effort to regulate the country's rapidly growing gig economy.
Scrutiny Over Transparency Mandates
The investigation centers on Ordinance No. 61, which requires digital delivery platforms to provide a detailed summary of how customer payments are distributed among all parties. Senacon contends that 99 Food's current disclosures are too generic and do not meet the ordinance's specific requirements for clarity. This move is part of a broader enforcement push, following similar actions taken against competitors iFood and Keeta in May.
According to the agency, 99 Food's use of terms like "delivery fee" and "service fee" may mislead consumers, as the company has not proven these amounts directly correspond to courier earnings and the platform's revenue. Senacon's technical analysis concluded that this lack of a clear, individualized breakdown constitutes a potential violation. The core of the dispute is not the fees themselves but the ambiguous way they are presented to users.
Regulatory Framework and Consumer Rights
Officials have framed the new ordinance as an enforcement of existing consumer rights rather than a new obligation. National Consumer Secretary Ricardo Morishita stated that transparency is a fundamental principle already guaranteed by Brazil's Consumer Defense Code. The regulation aims to correct the information imbalance between large platforms and their users, fostering fairer market conditions.
The ordinance mandates a clear summary showing the total amount paid by the consumer, the portion retained by the platform, the payment allocated to the courier, and the share for the restaurant. This detailed disclosure is intended to empower consumers, allowing them to compare services accurately and identify any potentially unfair charges. The measure brings Brazil's regulatory standards in line with similar transparency laws in the United States and several European countries.
Company's Position and Next Steps
In response to the investigation, 99 Food issued a statement saying it "receives the opening of the process with naturalness" and affirmed its commitment to consumer protection laws. The company had previously argued to Senacon that its current fee information is sufficient and that it was unaware of any consumer complaints regarding a lack of transparency. However, regulators found this defense inadequate to dismiss the evidence of non-compliance.
Following the official notification, 99 Food has 20 days to present its formal defense and provide evidence demonstrating its adherence to the ordinance. Should the company fail to satisfy the agency's requirements, Senacon is authorized to apply sanctions, including the substantial fine. The outcome of this case is being closely monitored as a key test of the new regulatory landscape for digital platforms in Brazil.
This administrative action against 99 Food represents a pivotal moment in the oversight of Brazil's digital economy, highlighting a growing regulatory focus on consumer protection and fairness. It reinforces the government's stance that transparency is non-negotiable in the relationship between platforms, service providers, and consumers. The final ruling will likely establish an important precedent for the operational and disclosure standards required of all delivery apps in the country.