Draft bill 226.

Summary.

The draft bill proposes to regulate the marketing, labeling, and advertising of food products, particularly substitutes and imitations, so consumers receive information about their nature, composition, and origin. It defines food products, domestic and imported products, processed products, substitutes or imitations, designations of origin, and food fraud. Its guiding principles include consumer protection, commercial transparency, producer or importer responsibility, fair competition, and protection of cultural identity and designations of origin. The definitions distinguish domestic from imported products according to whether production or processing takes place inside or outside the Republic of Panama (República de Panamá).

Substitutes or imitations would bear “SUBSTITUTE FOR” or “IMITATION,” followed by the product name, on the front of the package. The wording would appear in capitals and bold type, in a contrasting color, and at no less than 20% of the size of the product’s principal name. Retailers would post signs where the products are displayed, stating that identification, the product name in Spanish, and its country of origin. Each sign would measure at least 20 by 10 centimeters and use letters at least 5 centimeters high. The Executive Branch (Órgano Ejecutivo), through the Ministry of Health (Ministerio de Salud), would establish a graphic nutritional rating system by regulation. Until then, the preceding articles’ display requirements would apply.

The bill prohibits presentations that lead consumers to believe an imitation is the original product. It reserves names such as “milk,” “cheese,” “butter,” “yogurt,” and “chocolate” for products in which the corresponding ingredient predominates. Advertising could neither claim that these foods alone meet human nutritional requirements, attribute medicinal properties without health authority approval, nor assert nutritional equivalence without scientific support. Manufacturers, producers, and importers would be responsible for labeling, advertising, and quality, as well as consumer harm caused by noncompliance. Distributors and retailers would be liable if they alter packaging or fail to post required signs. Commercial actors would cooperate with inspections, provide traceability information, and withdraw products whose sale has been prohibited by a decision.

Food fraud would include misleading consumers, concealing required information, imitating the original product’s presentation, claiming properties the product lacks, or misusing designations of origin, geographical indications, or registered trademarks. It would carry a fine of B/.1,000.00 to B/.25,000.00, immediate withdrawal, and, when the authority considers it necessary, publication of the penalty at the offender’s expense. Substitute and imitation foods could not use protected territorial references without authorization from the General Directorate of the Industrial Property Registry (Dirección General del Registro de la Propiedad Industrial) of the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias). The text names 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 accredited laboratory testing at the producer’s or importer’s expense.

The Ministry of Health would oversee food safety and labeling; the Consumer Protection and Competition Defense Authority would oversee advertising and commercial practices under Law 45 of 2007; and the Ministry of Commerce and Industries would handle designations of origin and geographical indications. Minor violations would carry fines of B/.250.00 to B/.1,000.00; serious violations, B/.1,000.00 to B/.10,000.00; and very serious violations, B/.10,000.00 to B/.25,000.00, with product withdrawal where specified. Law 50 of November 23, 1995, on breastfeeding, would continue to apply alongside the bill. The draft bill would repeal Law 113 of November 18, 2019, direct the Executive Branch to issue regulations, and take effect upon promulgation. Its provisions concern those public authorities, agricultural food producers, importers, distributors, supermarkets, smaller retailers, and consumers.