What’s the ‘Right of Regret’ in Brazil?
The Right of Regret refers to Article 49 of Statute 8.078/90 of the Brazilian Consumer Defence Code (CDC). This law allows consumers to withdraw from a contract within seven days and receive a full refund of any payments made. It applies to payments made for both products and services – including accommodation reservations.
How does this affect properties in Brazil?
Under this law, Brazilian guests have the right to cancel reservations at Brazilian properties for free up to seven days after the booking confirmation day, regardless of the property’s cancellation policy. If the check-in date is less than seven days after booking, guests can cancel for free until 11:00 on the check-in date. If a guest changes their check-in date, this law still applies from the original booking confirmation date.
What do I need to do?
If you are a property located in Brazil, you’re responsible for refunding all reservations made in Brazil that are cancelled within this seven-day period. To help minimise the impact on your operations, we suggest that you only charge a guest’s credit card seven days after their booking confirmation date. If any charges are made earlier than the first seven days, you’ll need to issue a full refund if your guest requests it.
Here’s how to see which reservations are no longer in the seven-day window, and which you can already charge:
- Log in to the extranet.
- Click on Reservations.
- Click on Date of and then select Reservation from the drop-down menu.
- Count back eight days from today and then enter that date in the Until field (if today is 1 January 2021, then you would enter 24 December 2020 in this field).
- Click on Show.
You can charge reservations that appear in this filter, without the risk of needing to refund them later because of this law.