Summary.
The bill proposes requiring all advertisements for new or used motor vehicles sold in Panama to disclose the safety rating assigned by a recognized specialized agency. The requirement would apply to any individual or legal entity selling those vehicles in the country. A safety rating is defined as a rating issued by a vehicle safety evaluation agency recognized by formal resolution, in accordance with the technical criteria set out in the bill and its implementing regulations.
The text identifies Latin NCAP, Euro NCAP, NHTSA, and IIHS as possible evaluation agencies, along with other specialized international agencies. Recognition would be the responsibility of the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias) or ACODECO. Within 90 calendar days after the proposed law takes effect, one of those authorities would have to issue an administrative resolution listing the agencies officially recognized for purposes of compliance. The list could be updated periodically as international standards evolve.
For each model, advertisements would have to state the name of the evaluating agency, the rating obtained, and the year of evaluation. If the vehicle has no rating, they would have to display the words “not evaluated.” The requirement would cover digital, print, and audiovisual advertisements, as well as advertising at trade fairs, in showroom displays, on online platforms, and on social media. These rules concern the information that must accompany advertising for a model, whether the vehicle offered is new or used.
ACODECO would be responsible for overseeing compliance and imposing sanctions within its authority. Noncompliance would be considered misleading advertising under Law 45 of 2007 and would be subject to fines ranging from B/.500.00 to B/.10,000.00, without prejudice to other applicable sanctions. The bill uses that law as a reference for classifying noncompliance; it does not amend its provisions.
The Executive Branch (Órgano Ejecutivo) would have to issue implementing regulations for the proposed law within 6 months of its promulgation. The law would take effect 3 months after promulgation. Given its subject matter, the bill relates to the Ministry of Commerce and Industries and ACODECO, and could be of interest to or affect vehicle sellers, evaluation agencies, media outlets and platforms that carry vehicle advertising, and consumers.
What it proposes.
- Disclosure of safety ratings in vehicle advertising.
- Recognition of vehicle safety evaluation agencies.
- Oversight and penalties for noncompliance with advertising requirements.
Who it would affect.
- Individuals who sell new or used motor vehicles in Panama.
- Legal entities that sell new or used motor vehicles in Panama.
Key points.
- Proposes disclosing in vehicle advertisements the safety rating assigned by a recognized specialized agency.Art. 1
- The requirement would apply to individuals or legal entities that sell new or used motor vehicles in Panama.Art. 2
- The Ministry of Commerce and Industries or ACODECO would have to publish the official list of recognized agencies within 90 calendar days after the law takes effect.Art. 3
- Advertising for each model would have to show the agency, the rating, and the year of evaluation, or the words “not evaluated” if no rating is available.Art. 4
- The requirement would cover digital, print, and audiovisual media, trade fairs, showroom displays, online platforms, and social media.Art. 5
- ACODECO would oversee compliance and sanction noncompliance within its authority.Art. 6
- Noncompliance would be considered misleading advertising under Law 45 of 2007 and would be subject to fines ranging from B/.500.00 to B/.10,000.00, without prejudice to other sanctions.Art. 7
- The Executive Branch would have to issue implementing regulations for the proposed law within 6 months of its promulgation; the law would take effect 3 months after promulgation.Arts. 8-9