Agreement between Claro and Serasa on customer data is in the sights of the MPF | Legislation

The data exchange agreement between Claro and Serasa was the subject of a new letter from the Federal Public Ministry (MPF) with the Administrative Council for Economic Defense (Cade) filed on July 2nd. A first appeal to disapprove the contract was rejected by Cade, in a decision that split the council.

Headquarters of the Federal Public Ministry in Cáceres, MT (Image: MPF/Disclosure)

Cade rejected the first request of the MPF on June 1st. The vote was tight: 4 of the 6 councilors voted to approve the partnership between Claro and Serasa. The president of the federal agency, Alexandre Barreto de Souza, voted to suspend the contract, but was defeated.

MPF says agreement violates Claro’s customer privacy

On July 2nd, a new Administrative Procedure was introduced to monitor the economic effects of the trade policies signed between Claro and Serasa. It was filed with Anatel (National Telecommunications Agency) and sent to ANPD (National Data Protection Authority).

In the most recent official letter, the MPF considers that the agreement could mean a breach of privacy for Claro’s customer — protected by Anatel regulations.

In addition, the exchange of data may violate Article 7, Section I of the LGPD, which requires the consented treatment of the information holder, that is, the customer would have to authorize the sending to Serasa.

Serasa is prohibited from selling data by court order

As the attorney general of the Republic and representative of Cade and MPF in the process, Waldir Alves, points out, Serasa Experian was prevented by a court decision from selling Brazilian data. The credit bureau sold data lists to 150 million Brazilians in a B2B business model — R$ 0.98 per person.

Serasa announced data for R$ 0.98 per person (Image: Reproduction/Serasa Experian)

Serasa announced data for R$ 0.98 per person (Image: Reproduction/Serasa Experian)

The 2nd Civil Panel of the Court of Justice of the Federal District and Territories (TJDFT) determined that Serasa violated the LGPD and the Marco Civil da Internet. If the company violated the decision, it would have to be fined R$5,000 for each sale.

Finally, the Administrative Procedure points out that the agreement between the parties sets a precedent for abusive practices of economic power in the credit bureau market, in which Serasa operates. It can harm both consumers and other players in the sector.

The MPF asks both Claro and Serasa to manifest themselves, as they were informed of the order made by the Attorney General of the Republic Waldir Alvez. The opening of the process was also communicated to Senacon (National Consumer Secretary), of the Ministry of Justice and Public Security (MJSP).

Data exchange between Claro and Serasa should last 30 months

The agreement between Claro and Serasa establishes that the mobile phone and internet operator exchange information about their customers’ credit scores with the bureau.

Serasa, in turn, would use the data to strengthen its operations and prevent fraud. In exchange, the credit agency promises to invest in technologies that “add value” to Claro’s operations. The contract is expected to last 2 and a half years.

Claro's store in São Paulo (Image: Felipe Ventura / Tecnoblog)

Claro’s store in São Paulo (Image: Felipe Ventura / Tecnoblog)

“The partnership basically consists of the pioneering development of new proprietary technology, which will allow the use of more data from Claro users to enrich new products to be developed and offered to Serasa’s customers”, highlights an excerpt of the contract between the companies exposed in the opinion of the Where.

The document states that the Experian Group, owner of Serasa, had annual gross revenue of over R$750 million in Brazil in 2019. In the same year, Claro Telecom SA, Claro’s holding company, had gross revenue of R$48, 1 billion in its sales operations in the country.

With information: MPF

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