Bill 405.

Summary.

The bill amends Article 2 of Law 113 of November 18, 2019. It defines a food product as an animal or plant product, whether solid, liquid, or processed, intended for human consumption to contribute to nourishment or nutrition. For substitute or imitation products, it requires a sign enabling consumers to distinguish them from the original product. The sign must state whether the item is a substitute or an imitation, give the product name in Spanish, and identify its country of origin. On domestic or imported substitute products, the words “substitute or imitation” must appear on the label or engraved marking in a size greater than the trade name, or equal to 75% of its size.

The bill also amends Article 4 of Law 113 of November 18, 2019. Commercial establishments offering domestic or imported products that substitute for original products must display a visible sign reading “SUBSTITUTE PRODUCT” or “ORIGINAL PRODUCT,” as applicable. The sign must measure at least 40 centimeters wide and 30 centimeters high, with legible lettering at least 10 centimeters high in a color contrasting with its background. It must be placed directly above or in front of the displayed product, no more than 50 centimeters away. Shelving or counters with multiple sections require a sign for each product section or category. The notice must be in Spanish; additional translations are permitted if they preserve the visibility of the Spanish notice.

By adding Article 4-A to Law 113 of 2019, the bill requires at least one meter of separation between a substitute and an original product displayed together, or a clearly visible physical partition or barrier to prevent consumer confusion. It classifies a breach of this requirement as a serious violation, subject to penalties under the Law. A new Article 6-A sets fines of B/. 1,000.00 to B/. 5,000.00 for a first breach of the labeling and signage rules and B/. 5,001.00 to B/. 15,000.00 for repeat violations. For repeated noncompliance, it provides for temporary suspension of the commercial license for three to ten days. Fines may be doubled when the failure to label is proven intentional or intended to mislead consumers.

The Executive Branch (Órgano Ejecutivo), acting through the Consumer Protection and Competition Defense Authority (ACODECO), must issue regulations for the proposed law within sixty calendar days of its promulgation. The text states that it amends and adds articles to Law 113 of November 18, 2019 and provides for entry into force sixty calendar days after promulgation. In PANAMA, its provisions concern those public authorities, commercial establishments, food producers and importers, and consumers.