Misleading Advertising: What the Law Says and How to File a Complaint

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Misleading advertising violates the Consumer Defense Code and can expose the supplier to civil, administrative, and criminal liability. Consumers who have been harmed are entitled to redress and can use several channels to file a complaint.

What Counts as Misleading Advertising Under the Law

Article 37 of the Consumer Defense Code (Law No. 8.078/1990) defines misleading advertising as any form of advertising information or communication that contains a false statement or that, through omission, is capable of leading the consumer into error about the nature, characteristics, quality, quantity, properties, origin, price, or any other data about the product or service.

The provision also prohibits so-called misleading advertising by omission, which occurs when the supplier fails to disclose essential information about the product or service. A classic example is an ad for a defective product that shows the price in large letters but buries burdensome conditions in nearly illegible fine print.

Abusive advertising is another form barred by the same article. Misleading advertising centers on false information; abusive advertising concerns the psychological impact on vulnerable groups. Examples include ads that exploit fear or superstition or incite violence, and advertising aimed at children that encourages behavior harmful to their health and safety.

The National Council for Advertising Self-Regulation (CONAR) also sets advertising ethics standards in the private sector. Its role is complementary, however, and does not replace the legal protection of the CDC.

Most Common Types of Misleading Advertising

In everyday life, misleading advertising takes many forms. Recognizing them is the first step toward taking action:

A different price at the time of purchase: a product is advertised at one price but charged at a higher price at the register or online checkout. The CDC requires the supplier to charge the lowest advertised price (Article 35).

Fake sales with an inflated price before the discount: artificially raising the reference price before announcing a “big discount,” which creates a false impression of savings for the consumer.

Nonexistent properties: advertising functional capabilities, cosmetic effects, or health benefits that the product does not actually have. This is common in the markets for cosmetics, dietary supplements, and exercise equipment.

Conditions hidden behind an asterisk: ads that promote attractive terms (zero interest, free shipping, free gifts) while placing decisive restrictions in very small print or stating them with insufficient clarity.

Misleading advertising by omission is also illegal: failing to disclose essential information about a product can deceive just as much as stating something false.

Fake testimonials: using fabricated or manipulated consumer statements to create the impression that many people have had a positive experience with a product or service.

Supplier Liability and Consumer Rights

A supplier that runs misleading advertising is liable under civil, administrative, and criminal law.

In civil matters, a consumer who has been harmed by misleading advertising can demand that the offer be enforced as advertised, accept another equivalent product or service, or terminate the contract and get back what was paid, plus any compensation for property damage and pain and suffering, under Article 35 of the CDC.

In administrative matters, the state or municipal PROCON (Brazil’s consumer protection agency) can open a proceeding and fine the offending supplier. The fine can range from R$ 200,00 to R$ 3.000.000,00, depending on the advertiser’s economic size and the seriousness of the practice (Article 57, CDC). The federal PROCON, linked to SENACON (the National Consumer Secretariat), handles cases with nationwide impact.

In criminal matters, Article 67 of the CDC makes it a crime to run misleading advertising, with a penalty of detention from three months to one year, plus a fine. Liability falls on the advertiser and can extend to an advertising agent who knew the ad was misleading.

How to Report Misleading Advertising

Consumers have several channels for reporting illegal advertising:

PROCON: file a complaint directly with the state or municipal PROCON, in person or online. PROCON can open an administrative proceeding and fine the advertiser.

Consumidor.gov.br: a federal platform that lets you send complaints directly to the company. It is the most effective way to resolve an individual consumer’s problem, with a high resolution rate for registered companies. Visit consumidor.gov.br.

CONAR: the National Council for Advertising Self-Regulation accepts consumer complaints about irregular advertising. CONAR has no power to impose fines, but it can order ads taken down and publish its decision, which embarrasses the advertiser.

Ministry of Justice and SENACON: for complaints with nationwide impact or involving large companies that operate throughout the country.

Beyond these avenues, when misleading advertising has caused concrete property damage to the consumer, a lawsuit is the way to obtain compensation. To learn more about how compensation for consumer harm works, read our article on pain and suffering damages and compensation.

Frequently Asked Questions

Must a supplier honor a price advertised by mistake on its website?

As a rule, yes, as long as the consumer acted in good faith and the advertised price is plausible. Article 35 of the CDC provides that the consumer can demand that the offer be enforced as presented. However, when the mistake is obvious (such as an expensive product advertised for a few cents), courts have allowed the sale to be voided for manifest error, one the consumer could recognize in good faith.

Can a social media influencer who runs misleading advertising also be held liable?

Yes. An influencer who promotes false characteristics of a product can be held jointly liable with the advertiser for the harm caused to consumers, because the influencer takes part in the chain that delivers the advertising message. Liability can be civil (compensation for damages) and, where there is intent, criminal. CONAR rules also apply to advertising by influencers and require, for example, that paid advertising be clearly identified as such.

Can I cancel a contract I signed after being misled by false advertising?

Yes. Contracts entered into on the basis of false information put out by the supplier can be annulled for defect of consent (mistake or fraud), under Articles 138 to 150 of the Civil Code. In addition to annulment, the consumer can seek compensation for the harm suffered. The deadline to seek annulment for defect of consent is 4 years, counted from the date the defect was discovered or should have been discovered.

Cassius Marques ADVOCACIA Partner

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.