Reforms to the Consumer Protection Law

By: Feridee Alabi, Litigation Manager and Consumer Law Specialist

On Tuesday, June 24, 2024, the latest reforms to the Consumer Protection Law were published in the Official Gazette, Reforms to the Consumer Protection Law, which reformulate legal concepts and expand the scope of consumer protection..

The concepts of consumer and provider have been reformed; regarding the basic rights of consumers, protection against all unlawful advertising is included, as well as the consumer's right to choose the form of compensation that suits them in the case of claims. Additionally, it is included as a basic right that consumers have mechanisms for filing complaints, expressly requiring providers to have procedures in place for this purpose.

With these reforms, consumers will now have special regulations that protect them from dangerous products or services. The Consumer Defender will issue an alert and proceed with the removal of the product or service from the market; however, providers of these goods or services will be required to carry out a special procedure (recall or safety campaigns). which includes reports, a communication outreach plan in mass media, and a customer care plan for affected consumers.

Regarding contractual regulation, the reforms prohibit the simultaneous charging of late fees and interest; as well as charges for fees, surcharges, interest, and/or commissions that have not been agreed upon with the consumer under the established contractual terms. Additionally, the provider must respect the consumer's choice regarding the notary they designate.

Now, if a consumer is over-indebted, they will have the authority to approach the Consumer Advocate to request advice and use alternative dispute resolution mechanisms to seek a solution to their situation through restructuring, refinancing, or any other arrangement, solution, or payment plan.

Another important figure included in these reforms is that of the undercover delegate.This delegate is a representative of the Consumer Protection Agency who will present themselves as a consumer purchasing goods or services. When they observe any commercial violations during their inspection, they will identify themselves as a delegate of the agency by showing their credentials and identification document, and will proceed to record the violations found in an official report.

Other reformed topics included:

Withdrawal, right of retraction, reversal of payments, and the right to unsubscribe.

Abusive practices, which include: the use of securities as collateral for the obligation without this being stated in the main contract and in the obligation document; and making unjustified price variations on products or services to create false expectations for the consumer of an economic benefit under the guise of promotion, offer, or special price.

The obligations of suppliers of goods or services through electronic commerce, prior to, during, and after the contracting process.

Deposit procedure for adhesion contracts.

Provision of services.

Promotions.

-Advertising.

-Infractions.

-Sanctions.

-And the sanctioning activity.

These reforms are now in effect, and all providers of goods or services must comply with them and implement them in their business activities. If you need more information or specialized advice, do not hesitate to contact Feridee Alabi, specialist in Consumer Law, at falabi@romeropineda.com.