Mercado Livre and Amazon are notified to remove irregular cell phone ads within 48 hours. National Consumer Secretariat alleges that models are sold in an unauthorized manner. Xiaomi is the most famous company in the irregular market

Mercado Livre and Amazon are notified to remove irregular cell phone ads within 48 hours

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National Consumer Secretariat alleges that models are sold in an unauthorized manner. Xiaomi is the most famous company in the irregular market

Although the Brazilian smartphone market has several options and brands, 25% of this is all part of a portion of irregular cell phones, sold in Brazil without authorization from the various bodies. With a focus on reducing this, Senacon sent a notification to the Amazon e Mercado Livre remove ads that sell and send irregular smartphones throughout Brazil. Understand.

SENACON's notification

Mercado Livre and Amazon are notified to remove irregular cell phone ads within 48 hours. National Consumer Secretariat alleges that models are sold in an unauthorized manner. Xiaomi is the most famous company in the irregular market
Agency identified at least 50 advertisements for irregular cell phones on Amazon (Photo: Disclosure/EBC)

Focused on ending the irregular cell phone market in Brazil, the National Consumer Secretariat (Senacon), from Ministry of Justice and Public Security (MJSP)through the National Council to Combat Piracy and Crimes against Intellectual Property (CNCP) notified Amazon and Mercado Livre this Friday, May 10, to remove ads that appear with cell phones that have not had their sale authorized by national bodies. Companies have 48 hours to comply with the decision.

Disrespect for consumer protection laws and illegal commercial practices not only harm consumers, but also generate systemic damage to competition and national tax authorities. Civil society and government institutions must join forces to combat this type of activity and guarantee a safe and regulated consumption environment for all Brazilians.

Wadih Damous, National Consumer Secretary

The agency claims that these smuggled models, in addition to not having been properly taxed, may also have instruction manuals in languages ​​other than Portuguese. Furthermore, Senacon claims that the cell phones do not have a warranty, which could cause problems in the event of any repairs after purchase, as the warranty does not exist. Only in Amazon, 50 irregular cell phone advertisements were identified.

In addition to the objective of stopping irregular trade immediately, the measure aims to alert society about the risk of purchasing cell phones that entered the country illegally. It's the typical cheap-comes-expensive situation. Not to mention that the same logistics used in these networks for entry of cell phones in Brazil are also used by criminal organizations involved in illicit activities such as arms and drug trafficking, etc.

Andrey Corrêa, executive secretary of the CNCPexecutive secretary of the CNCP.

What is an irregular cell phone

Illustrative photo of irregular cell phones
Devices are cheaper, but can cause after-sales problems (Photo: Reproduction/Convergência Digital)

As the name suggests, an irregular smartphone is a model sold in Brazil without passing through the appropriate inspection bodies. When wanting to sell a device here, companies need various authorizations from ANATEL, Federal Revenue and more so that the model is not only taxed correctly, but also passes quality tests that guarantee proper functioning.

An irregular cell phone also has an after-sales service that can cause a headache, as sellers generally do not offer a warranty or free repair in the event of any problem. And it is for this exact reason that the price of these models is so low: in addition to not having the necessary taxes that influence the price for the consumer, sellers do not need to worry about post-sale procedures.

It can also happen that these irregular cell phones do not have an operating system and instruction manual in Portuguese, causing usage problems that would easily be resolved if all legal processes had been followed.

1/4 of cell phones sold in Brazil are irregular

Art to represent irregular cell phones
The illegal cell phone market has been growing in Brazil (Photo: Shutterstock)

Data collected by itself Abinee — Brazilian Association of the Electrical and Electronic Industry of Brazil — indicate that Paraguay was responsible for importing 7,5 million irregular cell phones. Of these, 77% were from the brand Xiaomi, followed by 8% of Samsung and 4% of Motorola e Apple .

The same report released in March by Abinee issued alerts to manufacturers operating in the national market, such as Samsung and Motorola, first and second in the sales ranking in Brazil. The number of illegal cell phones sold in Brazil reached 6,2 million devices, a 77% jump in 2023. In 2022, 3,5 million units of illegal smartphones were sold.

The biggest concern surrounding the issue is that if the projections are confirmed, 2024 could see an increase in the sale of these cell phones, reaching an impressive 33%. By way of comparison, the company's total sales Motorola represent 30% of the national market.

Mercado Livre and Amazon are notified to remove irregular cell phone ads within 48 hours. National Consumer Secretariat alleges that models are sold in an unauthorized manner. Xiaomi is the most famous company in the irregular market
Border operations intensify seizures of cell phones coming from Paraguay. Photo: Federal Revenue/Disclosure

Other brand models Oppo e Realme are also gaining more and more strength in the parallel market. The journey to Brazil is made by motorbikes, which carry small quantities of these devices, imperceptible for inspection at the border.

Despite the efforts of Federal Highway Police and also from Federal police in investigating and seizing this type of merchandise, Humberto Barbato considers that “border inspection is not being efficient in curbing this very serious problem”

During the release of this report, Humberto Barbato, president of Abinee, called for “drastic actions” for official bodies to combat this problem. See more about the case in this special article:

Response from marketplaces

Mercado Livre and Amazon are notified to remove irregular cell phone ads within 48 hours. National Consumer Secretariat alleges that models are sold in an unauthorized manner. Xiaomi is the most famous company in the irregular market
Amazon emphasizes that it does not sell cell phones that do not go through national bodies (Photo: Reproduction/Economic News Brasil)

Already with the office of senacon, Amazon highlights that it is far from selling smartphones that do not follow the standards defined by the appropriate bodies. The company also mentions that, when detected, such practices can result in the seller's account being banned. Look:

Amazon operates with the highest quality standards in order to meet its consumers and applicable legislation. Amazon does not sell irregular products. With regard to sales by partner sellers (marketplace), Amazon requires by contract that all products offered on the website have the necessary licenses, authorizations, certifications and approvals, as well as complying with all applicable laws. Any breach of these contractual obligations may result in the suspension and interruption of sales of your products, the consequent destruction of any existing inventory in Amazon distribution centers without the right to a refund, as well as the blocking of your seller account. We know that our customers' trust is hard to earn and easy to lose, which is why we remain focused on creating a trustworthy shopping experience every day.

Amazon about Senacon's notification.

Update 20:17 on May 10, 2024: Mercado Livre contacted Showmetech to state that it received the letter from Senacon and that it has acted to prevent attempts to misuse its platform. Check out the statement:

Mercado Livre informs that it received the notification from the National Consumer Secretariat and is in contact with the body. The company also states that it acts proactively to prevent attempts to misuse its platform, always valuing the quality of its users' experience. Whenever an irregular product is identified on the platform, the ad is deleted and the seller is notified, and may even be banned permanently. Mercado Livre also reiterates that it maintains its determination to collaborate with Anatel and cell phone manufacturers in combating irregular products, through various initiatives, including its intellectual property protection program, the Brand Protection Program. Mercado Livre has worked together with the agency, having already supported actions carried out by it with some sellers on its marketplace, in line with the permanent cooperation it maintains with the public and private sectors to combat irregularities.

Mercado Livre on Senacon's request to remove an advertisement for irregular cell phones.

Have you ever purchased an irregular cell phone without knowing it? Tell us Comment!

How to recognize an irregular cell phone

Showmetech has already developed a complete article on this subject, check below:

https://www.showmetech.com.br/como-identificar-um-celular-irregular

See also:

With information: Valor Econômico l Gov.Br

Text proofread by: Pedro Bomfim


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