The raid comes after reports from three law firms representing various brands of toys; seven of the eight establishments will be closed down.
São Paulo City Hall seized more than 200 tons of toys on the morning of Thursday April 25. It is a new raid in operation Legal Commerce on eight establishments on Avenida Vautier and Rua Tiers in the Brás region of São Paulo city center. Seven out of the eight establishments inspected will be closed down.
According to Mayor Bruno Covas, this is expected to be the biggest seizure ever made by the operation. “You couldn’t tell from the stores, but they all have warehouses with much more material than was expected”, said Covas.
115 professionals took part in the raid from the municipal administration, between Metropolitan Civil Guards and agents from the Mooca Sub-City Hall, in addition to the support of five trucks that transported the irregular items to other locations and representatives of the toy brands.
“These places also sell wholesale. That is, they are distribution points of pirate merchandise for the whole of Brazil. The City Hall’s operation also includes closing them down. Seven establishments will be shut”, said Mayor Bruno Covas.
Provoked by reports from law firms such as Daniel Advogados, which represents various brands of toys, the operation concentrated on the following places: I – Variety Store – Avenida Vautier, 377., II – X & J Comércio e Presentes – Avenida Vautier, 405, III – Lê Tu – Avenida Vautier, 427, IV – FEDBRAS Comercial de Presentes – Av. Vautier, 475, V – MJ Presentes – Avenida Vautier, 482, VI – Asia Home – Avenida Vautier, 526, VII – Distribuidora São Marcus – Av. Vautier, 692 and VIII – Gold Leaf – Rua Tiers, 628.
Everyone loses with piracy: the consumer, with products of dubious quality and risks to children; the industry, which fails to sell and reduces its investments and jobs; and the government, which collects less in taxes. The only ones who win are organized crime, which profits greatly from the illegal trade.
Brazil lost R $ 193 billion last year through the smuggling of merchandise, of which R$ 132 billion was in production losses from the clothing, cigarettes and medicine sectors, among others, and R $ 61 billion that the government failed to raise in taxes. This is according to data released by the National Forum for Combatting Piracy (FNCP).
The National Institute of Metrology, Quality and Technology (Inmetro) often tests pirate toys and warns about the dangers to children, ranging from the risks of suffocation to skin piercing and ingestion of small parts.
Partner at Daniel Advogados, lawyer Mariana Benfati, states that the falsification of toys affects not only the companies that own the brands but also the entire population.
“Because they are produced without any kind of quality control, they are often disposable and when broken, small parts can be ingested by children. Operations of this size are important because in addition to all these risks, the State fails to raise millions of reais with the entry of these products into the Country. The stores inspected are large toy distributors, which possibly supply the entire country. An indication of this is the number of products found in stock. Some of these stores had 3 to 4 storeys just with stock, filled with sealed boxes from China. Some toys arrive completely disassembled and out of the boxes. They are later assembled by the shopkeepers.”
About the Operation
Implemented in November 2018, with a raid in the Brás region, Operation Legal Commerce aims to combat piracy and improve mobility in locations with a large concentration of street vendors.
In a little more than a month of working in Bras, the area inspected went from 22 thousand to 96 thousand square meters.
Only on Tuesday, April 23, the Federal Revenue Service and the São Paulo City Hall seized about 30 thousand watches in a shopping mall in the region of 25 de Março, which represents R$ 4.5 million.
Other raids on April 20, 21 and 22 resulted in the seizure of about 200 tons of counterfeit items.
Since 2018, 600 tons of material that is pirate or has no invoice have already been seized.