Brazil: Introduced Bill requiring identity verification mechanism for legal entities (PL 2937/2023)

On 6 May 2023, the Bill requiring an identity verification mechanism for legal entities (PL 2937/2023) was introduced in the Brazilian Chamber of Deputies. The Bill amends the Civil Rights Framework for the Internet (Law No. 12.965), establishing principles, rights, and responsibilities for Internet use in Brazil. In particular, the Bill would require online platforms, including messaging providers, to establish an identity verification mechanism for legal entities that would be interoperable with the National Register of Legal Entities (CNPJ) and other means of identification. The platforms would be required to verify the authenticity of documents the legal entity presents and implement a flagging mechanism for users to report accounts impersonating legal entities.