Anuario ABLA - 2013

Tecnologia Technology 72 Anuário Yearbook ABLA 2013 A decision taken by the National Traffic Department (DENATRAN) may lead to legal challenges by consumer protection agencies and have consequences for car rental and leasing businesses. The point of contention is the DENATRAN’s requirement that an identification chip be installed in every vehicle in Brazil - whether they are brand new or used, made in Brazil, or imported. This is not a new issue. It began in 2006, with Resolution 212 on the National System for Automatic Vehicle Identification (SINIAV), which states: “No automobile, electrical vehicle, trailer or semi-trailer may be licensed to travel on roads open to traffic without being equipped with an electronic board.” Since then its entry into force has been changed a few times. The last time moved the start date from August 2012 to January this year. According to DENATRAN, the postponement was to allow a greater scope and the integration of other public bodies, including those associated with the National Traffic System, and those that are not.”It is open to the Traffic Engineering Company (CET), the National Land Transport Agency (ANTT), the Brazilian Tax Authority (RFB) and others, which are not required but have expressed an interest,” says DENATRAN. In addition, “There is logistical work that will be implemented throughout the country, which takes time,” explained the department, through its press office. Car owners have not yet been asked to install the chip, but DENATRAN says the measure is in force. “The system is undergoing testing and integration will occur simultaneously between DENATRAN, the State Traffic Departments (DETRANS) and the Federal Data Processing Service (SERPRO),” it explained. However, roll out will be gradual, and the deadline for all cars has been extended to June 2015 (previously it was June 2014). Civil society agencies and consumer protection organizations say the measure is unconstitutional. There are three arguments against it: it requires citizens to cover the expense; it invades drivers’ privacy (the vehicle can always be monitored, regardless of time and location); and the database with all the information on car owners will be managed by a private company. It seems each party will have to go to court. Everything suggests this legal battle may involve even those who do not want to get involved, such as car rental and leasing companies. Some companies will face a catch-22 situation. If they install the equipment and a provisional ruling upholds the right to privacy, the devices must be turned off, causing a loss (DENATRAN mentions no price, but the market estimates it at R$ 20 per vehicle).But if they do not install the chip and another decision recognizes it as mandatory, they will not be able to use the cars without risking a fine of R$ 127.69, and 5 points on the license, in addition to the vehicle being retained while the chip is installed. Indeed, this is a possibility. Lawyer Mauricio Januzzi, president of the Highway Law Commission at Brazil’s Bar Association, in São Paulo, confirms that the decision may be revoked and then enter into force several times. “There is no alternative but to appeal to the higher courts until there is a final ruling on the constitutionality of the resolution,” he explains. “Meanwhile, the decision that is valid now must be complied with,” he says. Januzzi also thinks Resolution 212 is unconstitutional for the same reasons mentioned above, and adds that no person is required to acquire evidence against themselves. “It is up to the police and other public agencies to increase surveillance. They should use other means, not a monitoring system,” he concludes. The courts may rule on chips

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