The São Paulo Court of Justice (TJSP) ended a two-year fight between traditional companies in the benefits sector and startups entering this market – iFood Benefícios, Flash, Swile, Caju and Pluxee. On the 11th, the São Paulo Court published a decision dismissing accusations of unfair competition by companies such as Alelo, Ticket and VR, represented by the Brazilian Association of Workers’ Benefit Companies (ABBT).
In the action, ABBT alleged that startups were acting illegally in the Workers’ Food Program (PAT), especially in the period before May 2023, when the program started to admit payment models in an open arrangement.
For the association, the startups – which offer cards from brands such as Visa, Elo and Mastercard, accepted in more establishments – practiced unfair competition with cards from benefit companies such as Sodexo, Alelo and Ticket, which are only accepted in accredited stores.
This more flexible model, called open arrangement, became permitted in the PAT from May 1, 2023. In 2024, after the action, the startups were ordered to compensate traditional companies in the sector and filed an appeal to reverse the decision.
In a ruling published on March 11, however, the 1st Reserved Chamber of Business Law of the São Paulo Court of Justice decided to uphold the appeal filed by the startups in the appeal.
The Court ruled that companies could use open arrangements before 2023 because there was no clear prohibition on this type of practice at the time. And therefore, there was no unfair competition. As a result, ABBT companies will have to pay legal fees (15% of the value of the case), in addition to procedural costs and expenses.
Continues after advertising
What companies say
In a statement, Caju highlighted that the decision reinforces that there was no irregularity in its actions.
Since the beginning of the legal dispute, the company maintained that it did not operate in the PAT during the period mentioned in the action and that it began to operate in the program only after the rules that allowed this model came into force.
“Legal security has always been a central principle in the construction of Caju. From the beginning, we have structured our operation based on a rigorous reading of the legislation and the rules of the Worker’s Food Program, always focusing on the protection of customers and the transparency of operations”, says Karen Fletcher, legal director at Caju.
Startups is awaiting positioning from iFood Benefícios, Flash, Swile and Pluxee.
Continues after advertising
Content produced by .
