As the fight against McDonald’s expands its global front, federal prosecutors in Brazil have opened a probe into the fast food giant and its main operator in Latin America, Arcos Dorados, for alleged violations of tax, labor, and franchise laws.
The investigation comes in response to a petition from Brazil’s General Workers’ Union (UGT), which asked the country’s Public Prosecution Service to open a civil inquiry into allegations of tax dodging, unfair competition, and labor infringements. The complaint alleged McDonald’s has organized its business in Brazil in a way that allows it to avoid taxes, skirt compliance with local franchise laws, and engage in anti-competitive behavior that disadvantages competitors and consumers alike.
Furthermore, the New York Times reports, the inquiry will look into whether Arcos Dorados “paid bribes to government officials in return for favors from Brazil’s tax collection regulator.”
The news comes on the heels of an “unprecedented” hearing last summer, during which workers from five continents, elected officials, and international labor leaders gathered in Brasília to testify before the Brazilian Federal Senate on how McDonald’s is “driving a global race to the bottom.”
Click Here: Cheap Chiefs Rugby Jersey 2019
SCROLL TO CONTINUE WITH CONTENT