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Newsletter Real Estate | Provisional Measure No. 948 of April 8, 2020 – Cancellation of Cultural and Touristic Services 28 jun 2023

Newsletter Real Estate | Provisional Measure No. 948 of April 8, 2020 – Cancellation of Cultural and Touristic Services

This newsletter deals with Provisional Measure No. 948, of 04/08/2020, which provides for the cancellation of services, reservations and events of tourism and culture sectors due to Covid-19.

On April 8, 2020, with entry into force on the same date, Provisional Measure n. 948, which provides for the cancellation of services, reservations and events of the sectors of tourism and culture due to the state of public calamity recognized by Legislative Decree nº. 6 of March 20, 2020, and the public health emergency of international importance resulting from the coronavirus (covid-19).

Under the terms of art. 3, this Provisional Measure applies expressly to the following sectors:

(i) providers of tourist services and business companies referred to in art. 21 of Law n. 11.771/08, including, therefore, the hospitality sector.

(ii) cinemas, theaters and platforms for selling online tickets.

Art. 2^nd establishes that in the event of cancelation of services, reservations and events, including shows and entertainment, there will be no refund of the amounts paid by the consumer, provided that it is ensured: (i) the right to reschedule services, reservations and of the canceled events; (ii) making the credit available for use or discount when purchasing other services, reservations and events, available from the respective companies; or (iii) another agreement to be formalized with the consumer.

Art. 2^nd, in its § 1^st, also determines that the rights provided above may be exercised by the consumer without any additional cost if requested within 90 days from the date of entry into force of the Provisional Measure, whereas its § 2^nd and 3^rd establish that the credit or the rescheduling must be used within 12 months from the end of the public calamity state recognized by Legislative Decree n. 6/2020, respecting seasonality and values of the services originally contracted.

§ 4º of art. 2 determines that, in the event of the impossibility of rescheduling, granting credit or entering into another agreement, the amount received from the consumer, monetarily updated by the National Consumer Price Index (IPCA-E), must be refunded within 12 (twelve) months, also counted from the end date of the declaration of public calamity.

Finally, art. 5^th stipulates that consumer relations governed by the Provisional Measure characterize hypotheses of unforeseeable circumstances and force majeure and do not give rise to moral damages, fines or other penalties, pursuant to art. 56 of Law No. 8078/90.

Our understanding is that the legislation in question intends to protect companies in the tourism and culture sectors from the obligation to refund consumers the amounts received for contracted services that will not be executed as a result of Covid-19, avoiding the decapitalization of these companies during the public calamity period and, thus, favoring the rescheduling of events and the reuse of the credit in various products offered by the service provider, always within 12 months of the end of this calamity period.