Bill 368.

Summary.

The bill seeks to ensure that consumers in the Republic of Panama receive accessible, clear, accurate, sufficient and understandable information. It covers written and electronic contracts, banking and insurance documents, websites, digital platforms, advertising, and labels for products intended for human consumption and other products. Its principles include accessibility, objective good faith, clarity, dignity, fairness, consumer protection, transparency and accuracy. Among other concepts, it defines essential and prior information, legibility, vulnerable consumers, unfair contract terms and misleading advertising.

For contracts, banking documents and electronic contracts, it proposes type of at least 12 points, legible characters and sufficient contrast. It prohibits concealing essential terms through sizes, placement, formats or colors that intentionally make them difficult to read; requires plain language; and requires interest, fees, penalties, due dates, restrictions and health warnings to be highlighted. It prevents financial providers from requiring promissory notes, payroll deduction authorizations, bills of exchange or other documents signed in blank as a condition for financing. Documents signed in violation of this rule would be void and would give rise to administrative and civil liability, without prejudice to criminal penalties for fraud. It recognizes the right to prior information and requires providers to keep that information compliant with these requirements, with updates and clarifications when appropriate.

The labeling provisions cover products manufactured, imported, distributed or marketed in Panama. They require information on identification, origin, manufacturer, importer or distributor, batch, dates and net contents, as well as instructions and warnings where applicable. For food and beverages, they also require a nutrition facts table per serving, ingredients, allergens and statements about certain components; front-of-package labels are contemplated when limits set by the Ministry of Health (Ministerio de Salud) are exceeded. The bill also establishes specific information requirements for cosmetics and personal hygiene products, cleaning products and chemicals, and textiles.

Consumers, consumer associations and civil society organizations could report violations to the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia) or the Ministry of Health. The authorities would provide telephone and digital channels, process complaints within 30 business days and publish annual reports; retaliation against complainants is prohibited. Violations include insufficient font size, concealment of information, ambiguity and misleading messages. The proposed consequences include fines ranging from B/. 1,000.00 to B/. 100,000.00, suspension of sales, invalidation of illegible or unfair contract terms, and corrections. Penalties would be set according to intent, harm, repeat violations and economic benefit. Affected consumers could pursue administrative and judicial remedies and claim damages.

The bill assigns oversight and inspection to the competent authorities, which could take samples, request documentation, require label corrections, and impound or withdraw products. It provides for institutional coordination and a national database of violators. In penalty proceedings, the alleged violator would have at least 15 business days to submit a defense and evidence; an investigation, a reasoned decision and the applicable appeals would follow, including a request for reconsideration within 10 business days. It authorizes interim measures, sets a five-year limitation period for initiating proceedings and requires cooperation from providers and businesses. It gives domestic producers 18 months and importers 24 months to bring labels into compliance; financial institutions and insurers have 3 months, and digital platforms 6 months, to bring documents into compliance. It requires compliance plans within 3 months and implementing regulations by the Executive Branch within 6 months; the proposed law would take effect upon promulgation.

Because of their oversight, standard-setting, border control and digital supervision functions, the bill also concerns the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), the National Customs Authority (Autoridad Nacional de Aduanas) and the National Authority for Government Innovation (Autoridad Nacional para la Innovación Gubernamental). It could be of interest to or affect producers, importers, retailers, banks, insurers, cooperatives, online service providers and consumers.