Summary.
The draft bill regulates the marketing, labeling and advertising of food products, particularly substitutes and imitations. Its stated aims are to provide consumers with information about a food’s nature, composition and provenance, prevent food fraud, and protect public health, competition and national designations of origin. It defines food products, national products, imported products, substitutes or imitations, processed products, designations of origin and food fraud. The distinction between national and imported products turns on where they are produced, prepared or processed, even when a national product uses imported ingredients. The bill sets out principles concerning consumer protection, commercial transparency, producer or importer responsibility, fair competition, cultural identity and prevention of misleading practices.
Packaging or labels for substitutes and imitations would have to display “SUCEDÁNEO DE [product name]” or “IMITACIÓN [product name]” on the front, in uppercase bold lettering, a contrasting color and a size no smaller than 20% of the product’s principal name. Retailers would also have to identify these foods on shelves, display units, refrigerators or display cases, stating the designation, the product name in Spanish and its country of origin. The sign would measure at least 20 centimeters wide by 10 centimeters high, with lettering at least 5 centimeters high and the colors specified in the bill. The Executive Branch (Órgano Ejecutivo), acting through the Ministry of Health (Ministerio de Salud), would establish a graphic nutritional rating system. Until that system is regulated, the stated packaging and display duties would apply.
The bill prohibits wording, images and presentations that could lead consumers to believe a substitute is the original product. It also bars reserved names such as “leche,” “queso,” “mantequilla,” “yogurt” and “chocolate” when the ingredient identified by the name is not predominant. Advertising could not claim that the product alone meets human nutritional needs, attribute unapproved therapeutic properties to it, or present it as nutritionally equivalent without scientific support. Manufacturers, producers or importers would be responsible for compliance with labeling, advertising and quality requirements and for resulting consumer harm. Distributors and retailers would be responsible where they alter the original packaging or omit required display signs. Commercial-chain participants would have to facilitate inspections, provide traceability information and remove products whose sale has been prohibited.
The bill treats misleading statements, concealment of required information, graphic imitation of the original product, attribution of nonexistent properties and unauthorized use of protected identifiers as food fraud. It provides for fines, market withdrawal and, in certain cases, publication of the penalty. Designations of origin and geographical indications would be protected: their use for substitutes would require authorization from the General Directorate of the Industrial Property Registry (Dirección General del Registro de la Propiedad Industrial) within the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias). The text mentions Café de Boquete and Cacao de Bocas del Toro. The Ministry of Health, together with the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia), could require testing by accredited laboratories at the producer’s or importer’s expense.
The designated authorities would exercise health, consumer protection and industrial property functions and coordinate inspections, penalties and withdrawals. Violations are classified as minor, serious or very serious, with fines graded according to the conduct and its effects. Law 50 of November 23, 1995, concerning breastfeeding, would apply alongside the proposed rules; the draft bill repeals Law 113 of November 18, 2019. The Executive Branch would issue implementing regulations, and commencement is tied to promulgation in the Official Gazette. The proposal concerns the Ministry of Health, the Consumer Protection and Competition Defense Authority and the Ministry of Commerce and Industries, as well as agricultural food producers, importers, distributors, retailers and consumers.
What it proposes.
- Marketing and advertising of substitute or imitation foods.
- Package labeling and signs at points of display.
- Protection of designations of origin and prevention of food fraud.
- Enforcement, liability and violations in the food market.
Who it would affect.
- Manufacturers, producers and importers of substitute or imitation foods.
- Distributors, wholesalers and retailers.
- Consumers of food products.
- Authorities responsible for health, commercial and industrial property enforcement.
Key points.
- Proposes regulation of food marketing, labeling and advertising to inform consumers about products’ nature, composition and provenance.Art. 1
- Defines national, imported, processed, substitute and imitation food products.Art. 2
- Defines designations of origin and food fraud by reference to geographical origin and information capable of misleading consumers.Art. 2
- Places responsibility for truthful labeling and advertising on producers or importers.Art. 3
- Prohibits misleading commercial practices that conceal essential food product information.Art. 3
- Requires substitutes or imitations to carry a visible front-of-package designation at least 20% as large as the principal product name.Art. 4
- Requires retailers to mark display locations with the designation, the product name in Spanish and the country of origin.Art. 4