Federal Public Prosecutor’s Office V. Monsanto

AC 5002685-22.2010.404.7104/TRF
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Final judgment
Brazil, Porto Alegre

Justice, Prosecutor
Ministério Público Federal
Monsanto
Felipe Quintana da Rosa

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Glyphosate
Compensation for moral damages caused to consumers due to the violation of Law No. 7.802, of July 11, 1989 and Article 220, § 4 of the Federal Constitution
4th Chamber of the Federal Regional Court of the 4th Region (Southeast) of Porto Alegre, Brazil
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April 14, 2012
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Payment of compensation of R$ 500,000 for moral damages caused to consumers. Obligation to disseminate a counter-advertisement explaining the negative consequences for human and animal health of the use of any agrochemical product, within 20 days, under penalty of a daily fine of R$ 5,000.00
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In a decision dated August 21, 2012, the Federal Regional Court of Appeals for the 4th Region ordered Monsanto Company to pay compensation for moral damages caused to consumers for a 2004 advertisement that associated the use of genetically engineered seeds and the herbicide glyphosate with virtuous environmental protection, increased productivity and crop quality, without providing essential data on the safety of these products, thus violating Article 220, § 4 of the Federal Constitution and Law 7. 802-89 on commercial advertising, according to which it is mandatory that advertisements for pesticides contain warnings about the harm to health and the environment resulting from their use. The public civil action for the defense of consumers initiated by the Federal Public Prosecutor's Office against Monsanto, which was rejected in the first instance, was therefore granted on appeal.

Monsanto published the said advertisement even though transgenic seeds were not authorized in the country, those grown in the country were contraband, and the law on biosafety and genetically modified organisms and their derivatives (finally passed in 2005) was in the process of being approved. Thus, in this context, the Court recognizes that the advertisement is misleading and was intended to prepare the market for the acquisition of genetically modified seeds and the herbicide they contain.

The Federal Regional Court condemned Monsanto for the damages suffered by consumers to pay compensation in the amount of 500,000 Brazilian reals to the National Consumer Defense Fund, established by National Law 10.913/97. It is also obliged to broadcast a counter-advertisement containing the verdict's provisions and to inform about the negative consequences of the use of any pesticide, regardless of the quantity, for health and the environment. The counter-advertisement must be aired in the same newspapers, radio stations and television channels at the same time and frequency as the challenged advertisement, within 30 days of the publication of the Court of Appeal's decision. The company will be fined $5,000 per day if it fails to comply with the decision.