Justice Ministry starts administrative proceedings against mobile companies

Ministry of Justice has started administrative proceedings against the four mobile phone companies operating in Brazil—Oi, Vivo, Tim and Claro. The goal is to investigate the changes made by the companies on the model of internet services they provide. Last year, companies have developed a model that suspends the customers' access to internet when their mobile internet package plans reach the limit bought by the users, so that they need to pay an additional amount to keep browsing the internet. Before that, when the limit was reached, the browsing speed was reduced, but the user did not have to overpay.

The investigation is conducted by the Department of Consumer Protection and Defense, linked to the National Consumer Secretariat, which has already reported alleged violations to consumer protection law, like their failure in the duty to provide information, non-compliance of supply and advertising offense made over the previous years. According to the ministry, when companies are notified, they have ten days to present their defense report. If convicted, they should have to pay fines of more than $2 million.

Sought by Agência Brasil, the Claro company reported that they had not been notified by the Department of Consumer Protection and Defense. "Only after receiving and examining the notification, the company will issue a report and take appropriate measures." The Oi company said they did not have access to the documents presented at the proceedings started by the government's agency. The Telefônica Vivo company reported that they have always complied with regulations, respecting the law and the contracts signed with their customers, and the situation has not been different on the case of internet restrictions. "The company has always acted with transparency with their customers and has always informed them previously about any measure that may affect them", read Vivo's note. The TIM company has not delivered any report on it yet.

Translated by Amarílis Anchieta

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