B2W sees fivefold increase in Rio court fine

Friday, June 3, 2011

A Rio de Janeiro state court has increased fivefold the daily fine imposed on Brazilian online retailer B2W Cia Global do Varejo -the holding company of the Americanas website - for violating an injunction suspending internet sales in the state, local press reported.

The fine has now increased to 100,000 reais (US$63,510) from 20,000 reais a day. Initially, the fine established by authorities was 500 reais.

In May, the Rio de Janeiro branch of Brazil's federal public ministry ruled to prevent Americanas.com from selling more products online in the state, until the company regularizes the delivery of behind-schedule sales. The ministry based its decision on over 20,000 complaints filed by users on customer protection websites.

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B2W's portfolio comprises the brands Americanas.com, Submarino, Shoptime, B2W Viagens, Ingresso.com, Submarino Finance and Blockbuster Online, offering more than 35 categories of products and services through the internet, telesales, catalogs, TV and kiosks.

The company fell 1.6mn reais into the red in Q1, compared with a net profit of 14mn reais in the same quarter a year ago, according to its latest financial results.