Summary.
The bill seeks to establish measures to prevent, address and penalize online scams and other offenses involving the misuse of electronic media. It links those measures to consumer security, electronic commerce and virtual interactions. To identify the conduct covered, it defines phishing, smishing and vishing as deceptive methods using emails, websites, text messages or telephone calls to obtain confidential information. It also defines web spoofing, pharming and baiting, involving false websites, redirection and deceptive offers that may lead to malicious software or dangerous sites. Spear phishing, CEO fraud, SIM swapping and carding are among the additional methods described.
Any business offering goods or services through a website in, from or to the Republic of Panama (República de Panamá) would have to display a corporate identity profile in the website footer. The profile would state its corporate name and a business and/or tax address in the Republic of Panama and/or abroad. The address would have to identify a genuine, verifiable and exact physical location, including office, premises, floor, corregimiento (district) and province. A business obtaining a notice of operations would have to state whether it has a website and, if so, demonstrate that it obtained a certificate confirming compliance with the identification requirement.
The General Directorate of Electronic Commerce (Dirección General de Comercio Electrónico, DGCE) would establish an online digital procedure to issue certificates of compliance to businesses applying for a Notice of Operations to conduct commercial activities. The certificate would be free of charge, processed promptly and subject to later review by the DGCE. Businesses would have to keep their website address details current, notify the DGCE of any change at least 30 days in advance and maintain a visible link to the certificate. The text also prohibits the use of electronic or virtual addresses for commercial activities in the Republic of Panama where there is no genuine physical address in the country.
For businesses covered when the bill is regulated and implemented, the text provides a period of one year, beginning when the digital certificate issuance system becomes operational, to comply with the website identification requirement. Noncompliance would result in automatic suspension of the notice of operations and its cancellation if the omission is not corrected within the period set by the regulations. The Executive Branch (Órgano Ejecutivo) would have no more than 6 months from promulgation to issue implementing regulations. The proposed law would take effect upon promulgation.
The bill concerns the General Directorate of Electronic Commerce, businesses operating websites, commercial operators applying for notices of operations, and consumers using online goods and services.
What it proposes.
- Prevention of scams and other offenses involving electronic media.
- Identification of businesses offering goods or services through websites.
- Compliance certificates and updates to business address information.
Who it would affect.
- Businesses offering goods or services through websites in, from or to the Republic of Panama.
- Businesses applying for a Notice of Operations to conduct commercial activities.
- Consumers engaging in virtual interactions or electronic commerce.
Key points.
- The bill proposes measures to prevent, address and penalize online scams and other offenses involving electronic media.Art. 1
- It defines methods of deception and fraud, including phishing, smishing, vishing, web spoofing, pharming, baiting, spear phishing, CEO fraud, SIM swapping and carding.Art. 2
- Covered businesses would have to display their corporate name and an identifiable physical address in the website footer.Art. 3
- A business obtaining a notice of operations would have to disclose whether it has a website and, if so, demonstrate that it holds a certificate of compliance.Art. 4
- The General Directorate of Electronic Commerce would establish a free, prompt digital process to issue certificates subject to later review.Art. 5
- Businesses would have to update their published address, give at least 30 days’ advance notice of changes and keep a visible link to the certificate.Art. 6
- The text prohibits electronic or virtual addresses for commercial activities in the Republic of Panama without a genuine physical address in the country.Art. 6
- The Executive Branch would issue implementing regulations no later than 6 months after promulgation.Art. 8