CADE convicts the Brazilian Dental Council (CFO) for prohibiting discount cards for dental services

On 16 August, the Tribunal of the Administrative Council for Economic Defense (CADE) convicted the Brazilian Dental Council (CFO) for prohibiting dentists to offer discounts in dental services. The organization was fined BRL 752,700.    

The scrutiny began with a complaint made by a dental clinic from the city of Capelinha, Minas Gerais, which reported that the dental council of the state (CRO/MG) launched a disciplinary proceeding against the clinic to prevent the business from accepting a discount card named “Cartão Mais Solidariedade”. In its defence, the association claimed that the Dentistry Code of Ethics, issued by the Brazilian Dental Council (CFO), prohibits professionals from granting such discounts.

The case rapporteur, Gustavo Augusto, considered that professional organizations may establish quality and safety assurance standards to be observed by the regulated market, preventing harm to consumers. “However, if these rules result in unreasonable, arbitrary or excessive competitive harm they can be considered antitrust violations and be subject to CADE’s preventive measures,” he said.

Amongst the obligations outlined in the decision, the CFO has 180 days to amend the resolution that restricted the acceptance of discount cards and limited the access to the market from companies in charge of discount card systems. Thus, Brazilian dentists will be able to give discounts as well as to accept the benefits again.

The decision also requires the suspension of the resolution provisions until they are amended. The Brazilian Dental Council is to dismiss, within 90 days from the hearing, all the disciplinary proceedings launched due to the use of discount cards.

The rapporteur determined the suspension of the administrative proceeding against the dental council of the state of Minas Gerais (CRO/MG) after the ratification of the cease and desist agreement until the association meets the agreed obligations.

Access Case no. 08700.005606/2023-51.