Brazil Supreme Court rejects challenge to food voucher rules

Supreme Federal Court Minister Cármen Lúcia has declined to hear a direct action of unconstitutionality (ADI 7.962) filed by the Brazilian Association of Worker Benefit Companies (ABBT). The lawsuit challenged new rules established by Decree No. 12.712/2025, which updated the Worker Food Program (PAT).

The government's reforms aimed to reduce food costs for workers, improve profit margins for restaurants, and expand the network of establishments accepting food and meal vouchers. Key measures included setting a cap on the fees charged to restaurants by benefit companies.

The Attorney General's Office (AGU) argued that the decree merely exercised constitutional regulatory powers to implement existing 2022 legislation. The AGU also noted significant market concentration, with four operators controlling approximately 80% of the sector, justifying state intervention to encourage competition. Minister Lúcia ruled that the dispute concerns legality rather than direct constitutionality, noting that any assessment of regulatory overreach would require a prior examination of Law No. 6.321/1976.