Brazil · Decision · Administrative

Consumer Protection Agency of the State of Mato Grosso v. Bayer S.A.

Issue:

Administrative decision issuing a fine against Bayer S.A. due to a marketing campaign that targeted children.

Summary:

In 2015, Instituto Alana presented a complaint to the Consumer Protection Agency of the State of Mato Grosso (PROCON-MT) arguing that Bayer S.A. was promoting the product ‘Redoxitos’, which is a vitamin-supplemented flavored gummy candy, and advertising it to children. The marketing campaign included a video game and a commercial that alluded to cartoon characters.

In 2016, PROCON-MT found that Bayer S.A. violated Brazilian consumer law as it promoted ‘abusive’ marketing campaign (as it was targeting children), misled customers by claiming that the vitamin supplement had positive health effects, created a videogame that acted as an indirect marketing to children, and did not label its product as a ‘vitamin supplement’ but labeled it as ‘food’. PROCON-MT issued a fine in the amount of R$1.500.000,00 (one million and five hundred thousand Brazilian reais) to Bayer S.A.

In 2019, Bayer S.A. paid the fine in the amount of R$ 586.822,65 (five hundred eighty six thousand and eight hundred twenty two Brazilian reais), as the company benefited from a state law that granted a discount to the company.