New Law Requires Prior Notice Before Imposing Fines on Low-Risk Businesses in the State of São Paulo
State Law No. 18.175/2025, which entered into force in July 2025, introduced an important change for companies operating in the State of São Paulo whose activities are classified as low risk. From now on, whenever PROCON-SP or other state consumer protection authorities detect irregularities, they must first issue a prior notice detailing the irregularities found and providing specific guidance on how to remedy them, before imposing any fine.
How Does It Work in Practice?
The new procedure establishes a mandatory sequence for inspections. During the first visit, if the inspector identifies any irregularities, a record of findings must be issued, listing all detected infractions and providing specific instructions on how to remedy each of them. At this stage, no fine is applied, as the first intervention has a primarily pedagogical and advisory nature.
The inspector then returns within a reasonable period for a second inspection, in order to verify whether the irregularities have been remedied. If the company has corrected the problems identified, the inspection is closed with no penalty. If the irregularities persist, a notice of infraction is issued, with the corresponding fines applied. It is important to highlight that, even during the compliance period, companies must immediately cease any unlawful conduct whenever possible.
Which Companies Benefit?
The state law applies only to businesses engaged in low-risk economic activities, as defined by the National Classification of Economic Activities (CNAE) and regulated by State Decrees No. 58.419/2018 and No. 57.298 (Annex I). These are generally activities with lower potential to cause serious harm to consumers, which allows for a more educational approach to enforcement without compromising consumer rights protection.
When Is There No Prior Notice?
The legislation provides for a closed list of serious situations in which a fine is applied immediately, with no prior notice. The “double visit” rule does not apply to cases involving consumer health and safety, recognizing that protection of physical integrity cannot await a second inspection. These include violations of the law prohibiting smoking in enclosed spaces and the sale of alcoholic beverages to minors under 18.
Likewise, no prior notice applies in cases of recidivism, fraud, resistance, or obstruction of inspection. Recidivism occurs when the company has already been fined for the same reason within the last five years, through a final administrative decision. Fraud includes intentional practices aimed at deceiving consumers, such as product adulteration, falsification of labels, or expiration dates. Resistance or obstruction includes any attempt to prevent, hinder, or disrupt the inspection.
The law also provides special protection to vulnerable groups, excluding from the prior-notice regime any conduct against minors (under 18), elderly persons (over 60), or persons with disabilities. There is also no prior notice in cases of discrimination based on social or economic status, or where the conduct is carried out in a coercive, intimidating, or degrading manner.
Finally, situations causing collective patrimonial harm or those incompatible with on-site inspection are excluded from the advisory regime, ensuring that the severity of the conduct is met with a proportional administrative response.
What Changes?
For companies classified as low-risk, the new law provides greater legal certainty, granting the opportunity to remedy irregularities after prior notice without immediate financial impact. This allows minor errors to be quickly corrected, fosters voluntary compliance, and establishes a more educational relationship with regulatory agencies, centered on guidance and adjustment rather than punishment.
It is important to emphasize that the double-visit rule does not exempt companies from the obligation to immediately cease unlawful conduct whenever possible, thereby ensuring effective consumer rights protection even during the compliance period.
Recognizing municipal autonomy and concurrent jurisdiction in consumer protection matters, Law No. 18.175/2025 authorizes municipalities to adopt its provisions locally, provided they are consistent with the rules of the National Consumer Protection System (SNDC). This enables municipalities to align their enforcement procedures with state guidelines, promoting uniformity in consumer protection practices.
To facilitate such harmonization, the law authorizes PROCON-SP to enter into agreements with municipalities for the training of municipal public agents regarding the application of the double-visit criterion in consumer relations inspections. This measure aims to ensure uniform implementation of the new procedures and enhance the technical capacity of enforcement personnel.
For low-risk businesses, the legislation represents a significant shift in their relationship with oversight authorities. The possibility of correcting irregularities before sanctions are imposed provides greater legal certainty and allows minor infractions to be resolved without immediate financial impact, thereby fostering voluntary compliance.
From the perspective of consumer protection, the law maintains full safeguards in situations that genuinely require immediate intervention, such as matters involving safety, health, fraud, and discrimination. The advisory regime applies only where there is room for correction without prejudice to consumer rights, thus preserving the balance between education and punishment.
By prioritizing prevention and education, without undermining the effectiveness of consumer protection, the law establishes a more balanced inspection model that benefits both businesses and consumers, creating an environment of greater cooperation and voluntary compliance with consumer protection standards.
The full text of Law No. 18,175/2025 can be accessed on the São Paulo Legislative Assembly’s Portal.
This article was prepared by our Conflict Resolution specialist, Júlia Astorga. Our team is available to assist your company in understanding and complying with the new legal requirements, providing practical guidance and reliable legal solutions.
