São Paulo adopts ‘double visit’ to protect small businesses from immediate fines

by Andrea
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Establishment may only be sanctioned in a second inspection if the problem persists after guidance; Beauty salons, stationery and neighborhood trades will benefit

Freepik
The new law applies to Procon and other state consumer protection agencies

Small entrepreneurs in São Paulo are now a legal protection against fines immediately applied in inspections. The governor (Republicans) Sanctioned, without vetoes, the bill that determines the application of the “double visit” criterion for economic activities classified as low risk. With the new rule, the first visit of the inspectors should be a advisor, focusing on informing and warning about any irregularities. The penalty can only occur in a second inspection if the problem persists.

The measure is valid, for example, for establishments such as beauty salons, stationery and small neighborhood trades. The new law applies to and other state consumer protection agencies, and seeks to align supervision in the state with the Federal Law of Economic Freedom, which establishes principles of bureaucracy and stimulation of entrepreneurship.

The text excludes cases of recurrence, fraud, health risk, discriminatory acts or collective damage that are still subject to immediate assessment. It also allows municipalities to voluntarily adhere to the rule and authorizes Procon to sign agreements to train inspectors.

According to state deputy Leonardo Siqueira (Novo), author of the proposal, the measure represents a breakthrough in legal certainty for small entrepreneurs. “The inspector was already drawing a fine, without giving the entrepreneur a chance to correct a failure. Now, the logic is to guide first and punish later,” he said.

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