Brazil acts against Apple for charging in dollars

Brazil has asked Apple to explain why its iTunes service charges Brazilian customers in US dollars instead of the local currency, media reported Wednesday.

The Consumer Protection Secretariat of the ministry officially notified Apple and was given 10 days to respond, Xinhua reported from the G1 news website.

Product prices must be quoted in the local currency, since charging in a foreign currency is illegal in Brazil.

The Secretariat also asked Apple to provide information on whether its service complies with the local consumer protection regulations for online stores which was updated in May.

If Apple fails to respond within the allotted time, it may have to pay a fine of up to 6 million reals ($2.6 million), according to G1.

Customers have been required to pay in dollars only with international credit cards after iTunes store became available in Brazil in 2011. The company’s online App Store for iPhone and iPad users also charges local consumers in dollars, said the website.