Sponsored Links In Brazil: Will Courts Ban Them?

A recent decision by the São Paulo State Court of Appeals in the case between Via S/A ("Via") and Magazine Luiza S/A ("Magazine Luiza") highlights critical issues in the realm of advertising and trademark law, particularly concerning the use of sponsored links in digital marketing*. The case, centered around the unauthorized use of trademarks "CASAS BAHIA" and "PONTO FRIO" by Magazine Luiza in Google Ads campaigns, underscores the nuanced challenges of ensuring fair competition and protecting brand integrity in the digital age.

Case Background

Via is the owner of the trademarks "CASAS BAHIA" and "PONTO FRIO" and filed a lawsuit against Magazine Luiza, alleging that the latter had engaged in unfair competition by using these trademarks as keywords in Google Ads. Via argued that this practice led to consumer confusion and a diversion of clientele, which ultimately harmed its brands.