Brazilian consumers go online, so do infringers

by | Jun 3, 2019 | Articles, Intellectual Property, Trademarks

Each year more Brazilians engage with e-commerce, and Brazil has taken the position of 4th largest internet market globally, representing 42% of all B2C e-commerce in Latin America. With Brazilian consumers and social commerce becoming one of the main trends, it is not surprising that social media platforms and instant messaging solutions make up most of the time spent online by internet users in Brazil, which holds the second position in the global ranking of daily hours spent online.

Brands are heavily investing in targeted ads and online advertising, which Brazilian consumers are more accepting of (only 35% view the ads as a privacy invasion), and predictions point to e-commerce continuing to grow at a fast pace in the country.

The growth of the e-commerce consumer base made it easier for sellers to market products to internet users without having to commit significant investments to “set up shop.” As a result, the marketplace business model continues to grow, and today there are several international and domestic marketplaces with a firm hold on the country`s e-commerce.

However, the changing online environment in Brazil also created challenges to brand owners, which are frequently seeing their products (or look-alikes) being sold below margin prices. In practice, considerable number of unauthorized sellers are advertising parallel imports and counterfeits in Brazil`s marketplaces. Both practices are prohibited by the Brazilian IP Law.

Brands now need to keep a watchful eye over misuses of their trademarks, grey market goods and counterfeits present on marketplaces. Not of all these marketplaces are friendly to IP Protection Programs (IPPP), but with the right online brand protection strategy, it is possible to remove the hordes of illegal goods effectively, so that brand owners can increase their sales and protect consumers from faulty products.

Article published in MIP, read on

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