Bill 407.

Summary.

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

The amendment to Article 4 of the same law would require businesses offering domestic or imported substitutes for original products to 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. Its lettering must contrast with the background, be legible, and be at least 10 centimeters high. It must be placed directly above or in front of the displayed product, no more than 50 centimeters away. On shelving or counters containing multiple products, a sign is required for each section or product category. The notice must be in Spanish; additional translations are permitted if they do not diminish the Spanish notice’s visibility.

New Article 4-A would require at least one meter of physical separation when a substitute is displayed next to an original product, unless a clearly visible physical partition or barrier separates them. A breach would constitute a serious violation subject to penalties under the law. New Article 6-A would set fines of B/. 1,000.00 to B/. 5,000.00 for a first breach of the labeling and signage provisions and B/. 5,001.00 to B/. 15,000.00 for repeat violations. Repeated noncompliance could also lead to suspension of the business license for three to ten days. Fines could be doubled where the failure to label is shown to be intentional or intended to mislead consumers.

The bill directs the Executive Branch (Órgano Ejecutivo), acting through the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia, ACODECO), to issue implementing regulations within sixty calendar days of promulgation. It reiterates that it amends and adds articles to Law 113 of November 18, 2019, and provides for the proposed law to take effect sixty calendar days after promulgation. The provisions concern that public authority as well as retail businesses, food producers and importers, and consumers of original and substitute products.