The southeastern Brazilian state of Sao Paulo on Thursday banned animal testing in research for the cosmetics, perfume and personal care industry,
The decision followed recent protests by animal rights activists.
The legislation slaps a fine of $435,000 per animal on any institution or research center that fails to comply.
The fine will double for repeat offenders and the establishment can be closed temporarily or permanently.
Professionals found to be violating the law will also face fines.
Governor Geraldo Alckmin announced the test ban throughout the state after meeting with opponents of the practice, representatives of the cosmetics, perfume and personal hygiene industry as well as with veterinarians and scientists.
"We listened to all sectors and decided to pass the law," he noted.
Last October, rights activists invaded the Instituto Royal lab in Sao Roque, near Sao Paulo, and freed 200 Beagle dogs used for drug testing.
The lab was subsequently shut down due to what it called "high and irreparable losses."
Most of the animals freed from the lab had their skins shaven and another was found dead, frozen in liquid nitrogen and with signs of mutilation.
Animal testing for scientific research is legal in Brazil and is regulated in line with international norms.