Article 40 of ECA Digital is one of the most impactful provisions of the new law: it requires foreign suppliers of digital products or services subject to the law to designate a legal representative in Brazil, constituted as a legal entity. The question that drives compliance strategy is: is my company subject to the law?
What Article 40 says
The article establishes that foreign suppliers of digital products or services reached by ECA Digital must maintain a legal representative in Brazil with powers to respond to regulatory obligations, receive subpoenas and notices, and represent the company before administrative and judicial authorities.
The rule requires this representative to be constituted as a legal entity based in the country — a natural-person attorney is not sufficient. This requirement was reinforced by Decree No. 12.975/2026, which extended the obligation to internet providers in general.
What counts as "offering services to users in Brazil"
The law does not use rigid revenue thresholds or minimum user counts to determine whether a platform "operates in Brazil". The reading consolidated with the Brazilian Internet Framework (Marco Civil) and LGPD is broad: if your platform is accessible from Brazilian territory, collects data from users in Brazil, accepts payments in Brazilian reais, is offered in Brazilian Portuguese, or runs advertising targeted at the Brazilian market, it is offering services to users in Brazil.
No CNPJ, physical office, or local employees are needed. It is enough that the platform is accessible and effectively used by Brazilian users — which, in practice, reaches almost every global platform.
Cases where the obligation is unambiguous
Some scenarios make the obligation even clearer: platforms with Brazil-localized versions, apps available on Google Play and App Store for Brazilian users, services earning ad revenue from Brazilian audiences, and digital products priced in reais.
If your platform fits any of these scenarios, the next step is formally structuring your legal presence — see how our formalization of representation works.
Consequences of operating without a representative
Operating without a legal representative in Brazil exposes the platform to three concrete risks: administrative or judicial blocking of the activity, fines of up to 10% of the group's revenue (capped at BRL 50 million per infraction), and direct liability of executives for unfulfilled orders. Brazilian authorities today have tools and international cooperation to make these sanctions effective.