Economic developments have led to the specialization of branches of law or the development of others that did not exist. This is the case of consumer law or consumer protection, which has evolved into a special set of rules that govern relations with consumers that originate in the chain of marketing of goods and services between manufacturers, intermediate suppliers and the final recipient.
The purpose of consumer law is to regulate the relationship between a consumer and a professional who offers, on the market, products or services acquired by the non-professional public, for personal use. Consumer law recognizes the existence of an imbalance between the parties to the consumer relationship, which justifies the sanction of unfair terms in contracts of adhesion.
The recognition of inequalities between professionals or suppliers and consumers justifies, in turn, that the ordinary rules of civil law have given way to a special regime, allowing it to compete with commercial law to govern contracts between them.
Consumer law regulates the so-called consumer contract, both in the pre-contractual phase and in the formation of the contract, the obligation to inform, the interpretation of clauses, unfair terms, the guarantees offered, the veracity of advertising and the offer, the performance or non-performance of the contract, unfair practices in trade, Aggressive sales, comparative advertising, promotions, price reductions or the famous "good deals".
In particular, it should be noted that consumer law develops the civil liability of the manufacturer and the general principles of the criminal liability of the manufacturer, for the products it supplies on the market.
Article 35 of Law No. 45 of 31 October 2007, which lays down the rules for consumer protection and the protection of competition, establishes a list of consumer rights, including the right to:
Article 36 of Law 45 of 2007 establishes a list of obligations of suppliers to the consumer, such as the following:
This information must be included on the label and in Spanish in the case of medicines, agrochemicals and toxic products and food products that require specific warnings or precautions that they represent a danger to human health, as determined by the executive branch through the Ministry of Health. In the case of other products or services, the Authority shall determine which of this information should be provided, taking into account the type or nature of each type of product or service.
The Authority may determine the obligation to include on labels such additional requirements as it deems necessary, in accordance with the nature of any other product.
An importer or supplier who repackages, repackages, relabels or alters the original packaging or label of a product must not alter or conceal origin information, such as nature, composition, contents, weight, origin, expiry date, toxicity, precautions, price and any other determining conditions.
In the case of banking or financial services, the interest rate agreed upon and actually paid may not exceed the maximum percentage permitted by law in any case.
Likewise, documents ancillary to the contract signed by the consumer with empty spaces will be null and void, in circumstances that may be completed later by the supplier, in terms different from those agreed in the contract.
Civil Liability for Non-Conformity of Products
In accordance with Article 37 of Law 45 on Consumer Protection in Panama, manufacturers, importers, distributors or suppliers, as the case may be, will be responsible for the relevance, quality, veracity of commercial advertising and the authenticity of the legends displayed on the products and services, as well as the content and shelf life of the product indicated on the packaging. the container, package or label.
Article 48 of Law 45 of 2007 provides, with regard to latent defects, that when the goods have hidden defects or defects that make it impossible for them to be used for which they are intended, or that reduce their quality or the possibility of their use, and that if the consumer had known about them, they would not have acquired them or would have given a lower price, the supplier will be required to receive them and to return the sums paid by the consumer, as established by the Commercial Code. However, the consumer may choose to benefit from a price reduction, without the right to a subsequent complaint.
With regard to product guarantees, several articles of Law 45 of 2007 develop the issue as follows:
When the products do not function properly during the warranty period, due to a defect in the product or for reasons attributable to the manufacturer, importer, distributor or supplier, the latter is obliged to guarantee its functioning and, where applicable, according to the use of the good or any of its components, to repair it. In the event that it turns out that the consumer was not able to use the goods from the outset, in accordance with the above, and that the goods and packaging are in good condition, the supplier will replace them or refund the sums paid by the consumer, where it is not possible to replace them.
The guarantee period will depend on the nature of the asset, so it can be regulated.
The supplier and intermediaries may not provide a warranty that is less than what they receive from the manufacturer.
Where the consumer applies to the competent authority to assert his rights outside the period laid down in the guarantee, he must prove that he has appeared before the supplier within that period in order to make it effective.
Article 43 of the Consumer Protection Act expands on the rules on the warranty on repair services. In this regard, Law 45 of 2007 considers that there is an obligation to offer the consumer a guarantee for the repair service, which will be understood as the condition of efficiency in the performance or performance of the contracted services.
Where the inefficiency concerns the repair or maintenance of motor vehicles or movable property intended for personal use, at home or in professional, commercial or industrial establishments, the supplier shall be required, within a period not exceeding fifteen days, to resupply the contracted service in a satisfactory manner and at no additional cost to the consumer. The supplier may, in the alternative, reimburse the consumer for all sums paid by the consumer for the provision of those services.
In cases where the repair is not covered by a warranty, the repair shop will have to carry out an evaluation and diagnosis and will ask for the express authorization of the consumer before starting the repair.
Similarly, Article 44 specifies that, in the case of services other than those indicated in the previous article, the provider's obligation to provide the services at no additional cost must be performed within a reasonable time, in accordance with the nature of the service. The supplier may exercise the option indicated in the last part of the second paragraph of the previous article.
Article 47 of the Consumer Protection Act develops the rules applicable to liability arising from the contract for the sale of motor vehicles.
In this sense, the Consumer Protection Act stipulates that suppliers of new motor vehicles are required to extend a minimum warranty of one year or thirty thousand kilometers, whichever comes first.
When the manufacturer's warranty is more favorable to the consumer than the minimum conditions established in this article, it will be mandatory for the supplier to offer the manufacturer's warranty. The supplier is obliged to provide the consumer with the written factory warranty.
In the case of second-hand motor vehicles, suppliers may not import into the national territory second-hand vehicles whose manufacturing model is more than five years old, according to the vehicle identification number, and the minimum warranty, referred to in the first subparagraph, for such vehicles shall be six months or fifteen thousand kilometers. whichever comes first.
The following vehicles are exempt from this prohibition:
Civil Liability for Construction-Related Offenses - Latent Defects
Article 79 of the ACODECO Law (Law 45 of 2007), relating to new constructions, provides that the supplier of new residential constructions must establish, in a clear and written manner, the terms and conditions of the guarantee of the works. In the event that there are different coverages in the warranty, these must be duly detailed.
The advertising of new residential construction will be an integral part of the purchase and sale contract signed between the supplier and the consumer. Advertisements advertised in leaflets, brochures, books or any other means distributed by the Provider are binding on the Provider and enforceable by the consumer.
Contracts for the sale of new buildings must mention the certain or determinable date of delivery. In the event of non-conformity for reasons not attributable to the supplier, the reasons why the goods were not delivered within the time limit set must be left in writing. In the event of non-compliance with the delivery deadline, the consumer will have the option of terminating the contract, with the corresponding total refund of the sums paid and without any penalty.
Contracts must indicate the total amount of the sums to be paid, as well as the cases in which adjustments may be adopted in the price. In the event of an increase in the cost of construction materials, the Authority shall establish the parameters and technical procedures for verifying these adjustments.
The consumer may demand proportional reductions in the price of new constructions, where their final conditions or specifications have varied considerably from those previously established in the contract.
It should be noted that Law No. 284 of 14 February 2022, which regulates the horizontal ownership regime and subrogates Law 31 of 2010, on the promise of sale of real estate contracts, provides that:
In the same way, it is stated in this article that for this purpose, the respective real estate unit must be suitable for permanent inhabitable. For the purposes of this article, it is understood that the buyer cannot refuse to receive the property as long as the unit is inhabitable as a whole, and if there are exceptions that do not involve an amount greater than 1% of the value of the property, the seller must make the corresponding corrections within a period not exceeding thirty calendar days.
The real estate unit will be considered delivered if the buyer actually occupies it.
This article will be applicable to all new housing, whether or not it is incorporated into the horizontal ownership regime, and their protection will be the responsibility of the Consumer Protection and Competition Authority, which will be competent to impose penalties for infringement of this article, which will be imposed in accordance with the amounts and procedures of Law 45 of 2007 and its regulations.
Similarly, Article 121 of the Law on Horizontal Property stipulates that, for the calculation of the areas of real estate units, the area occupied by the columns inside the respective real estate unit, the eaves and external slabs that carry certain equipment or facilities that serve the real estate unit, as well as the area occupied by the exterior walls, will be included. because, although they are common parts of the building, they provide a direct service to the respective real estate unit.
Our Law Firm has the experience and knowledge to represent our clients in consumer protection proceedings, both at the administrative level and in conciliations, as well as at the judicial level, to demand the corresponding civil liability and obtain compliance with obligations and guarantees, as well as to defend against any claim that may arise.