Customers discover at the hotel that their reservation outside the 123 Milhas Promo line has been cancelled: ‘No reason’

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They claim that they were not communicated by the company, which continues to operate. See what lawyers and consumer protection bodies say about the conduct. Júlia de Souza received a survey from 123 Milhas after being blocked at the hotel door in Curitiba (SP) Personal Archive Imagine going to an unknown city, paying in advance for your accommodation and being blocked at the hotel door. That’s what happened to Júlia de Souza and her mother during a trip this month to Curitiba, booked in May through the 123 Milhas website — and outside the Promo line, which was suspended by the company. “I was floored when they said that 123 had cancelled. I tried calling the company, but it only gave an automatic message (…) I realized that I wouldn’t have support and I researched other hotels”, described the customer. Julia had to pay another R$1,500 to find another place to stay, in addition to the almost R$400 she had already paid to the agency. And it wasn’t the only one. Other people who purchased products from 123 Milhas have complained in recent weeks that they were left in the lurch. Consumers also complain about not having been notified in advance by the company about the cancellation of non-promotional reservations. Just over a month after the crisis came to light, 123 Milhas continues to operate, after filing for judicial recovery at the end of August — a process that is currently suspended. Until last Thursday night (28), on the website’s cover, there was only a notice (“banner”) for anyone who needed help with Promo packages; there was no mention of cancellations of services outside this line. g1 heard lawyers and consumer protection agencies, in addition to 123 Milhas, to understand why the cancellations are happening and whether the company can act like this. See the main points of what they said: Lawyers specializing in business law understand that, by law, 123 Milhas is exempt from honoring, for 6 months, services purchased by its customers until August 29th. It is the date on which the company filed for judicial recovery; What protects the company, at this moment, is a “shield” that even includes products that were not part of the Promo line and vouchers issued as compensation; On the other hand, Idec and Procon-SP, consumer protection bodies, understand that the company has violated consumers’ rights by failing to provide services and access to information; To g1, the travel website stated that its demands (in customer service) have increased since the request for judicial recovery, in August, and that it has responded in chronological order. Read below for more details. Losses inside and outside the Promo line Júlia de Souza and her mother, residents of Garopaba (SC), had made hotel reservations in Curitiba with 123 Milhas in May. A week before the trip, Júlia called the establishment, which confirmed the accommodation. According to the journalist, at no point did the company communicate the cancellation or explain why they only found out about it at check-in. “The only message I received from the agency was to evaluate the accommodation, a service that I didn’t even use,” she added. On August 9, days before the 123 Milhas crisis became public, teacher Milena Ramos, from Recife, had purchased a package from the 123 Milhas Promo line for November. The destination was Rio de Janeiro: she wanted to meet friends and enjoy Taylor Swift’s concert. Milena Ramos bought a promotional package with seven nights at 123 Miles Personal Archive On August 22, shortly after the suspension of the Promo line, Milena told g1 that she had spent R$2,200 on the trip. And that, after 123 Milhas’ decision, she received three vouchers as compensation. But, in addition to the tickets, she had also booked a guesthouse with 123 in Porto de Galinhas (PE), which was not part of the Promo line, for December. “Until August 28th, everything was fine,” she said. Last week, when she called the destination again, she was informed that the reservation had been canceled by the agency. Combining what she paid for the trips to Porto de Galinhas and Rio — since she cannot use the vouchers for now — she states that the loss is R$4,000. What lawyers say At this moment, 123 Milhas is exempt, by law, from honoring services purchased with the company until August 29th. This “shield” lasts 6 months, counting from that date, and includes all products, even those that are not part of the Promo line. This is what Fernando Brandariz, lawyer specializing in judicial recovery and president of the OAB-Pinheiros Business Law Commission, explains. The vouchers distributed as compensation to Promo’s customers are also included in the “shield”, as are the debts that are in court, reinforces Carlos Nei Fernandes Barreto Júnior, head of Civil, Consumer and Strategic Litigation at PG Advogados. Hence the cancellations faced by Júlia and Milena, who purchased the services before August 29th. On the other hand, the company needs to honor all commitments made to customers who contracted services after this date, as it continues to operate. WHY AUGUST 29? This is the date on which 123 Milhas filed for judicial recovery, around 10 days after the suspension of the Promo line, when the company’s crisis came to light. The request was accepted by the Minas Gerais Court of Justice just two days later. AT 123 MILES CAN YOU CONTINUE SELLING? Yes. The Judicial Recovery Law allows indebted companies to continue operating, while negotiating with their creditors, under the mediation of the Court. And the “shield” that exempts the company from honoring the services sold until the date of the recovery request, for 6 months, is part of this law. It’s called the “stay period”. The idea is for the company to gain time to build up cash, pay debts and get back on its feet, says Marcelo Godke, a lawyer specializing in Business Law, Compliance and professor at Insper and Faap. BUT THE RECOVERY WAS NOT SUSPENDED? The court ended up suspending the judicial recovery process on the 20th, for reassessment, but maintained the “shielding” period. Read also: Brazilian hotel is voted the best in South America; see PHOTOS Restaurants in Brazil are included in lists of the best in the world What consumer protection agencies say Despite acting within business legality, the Brazilian Institute for Consumer Protection (Idec) and Procon-SP point out that 123 Milhas has violated consumer rights when failing to provide services and access to information. In this context, the bodies point out that, since the suspension of the Promo line, they have received numerous complaints from the agency’s customers. “All complaints registered with Procon-SP were forwarded to the company and monitored by the agency’s specialists. A fine was also issued against 123 Milhas and the data was shared with the Public Ministry, for possible legal action”, highlighted the agency. In light of reports from customers about reservation cancellations discovered at the time of accommodation, Procon notified 123 Milhas last Tuesday (26) so that the company could adopt clearer forms of communication. The agency requires the company to make it more accessible to view information about the suspension of packages and the progress of the judicial recovery request. And that the 123 Milhas page contains explanations about the contracts signed and offers more customer service channels. HIDDEN INFORMATION: on the website, only those who reach the “Help” page and click on the “Promo 123” item are taken to another page where it is possible to access an “important update” about the line. Only after another click appears a note where the company explains that, due to the request for judicial recovery, “it is temporarily prevented, under the penalties of the law, from making payments of any nature, referring to transactions carried out up to the date of 29 /08/2023”. “This way, while the Judicial Recovery process is ongoing, your voucher cannot be requested.” What 123 Miles says To g1, 123 Miles stated that it has already sent a proposed change to Procon-SP and is awaiting a position. Furthermore, he reported that his “demands (for customer service) have multiplied” in recent weeks, but that “they are all being answered, in chronological order”, giving priority to those formulated on the consumer.gov website. The company did not comment on the cases reported in this report. Read also: Maxmilhas also requested judicial recovery; debt is R$ 226 million 123 Miles: See consumer rights More tourism videos: Discover the largest cruise ship in the world, which weighs 5 times more than the Titanic Brazil has two of the best ice cream shops in the world, according to the gastronomic atlas Casa do Shrek in Scotland is available for holiday rentals

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