Bill 441.

Summary.

The bill amends Article 81 of Law 45 of 2007 concerning product recalls. Once a manufacturer, importer, distributor, or supplier learns of a recall prompted by a product defect or harmful effect, it must announce the recall through media with recognized nationwide circulation and notify the Authority. It must also replace the part, remedy the defect, or withdraw the product immediately upon learning of the recall for consumers who purchased it and visit the relevant business establishment within the one hundred and twenty days following publication of the notice.

The Authority must seek to ensure that the notice reaches affected consumers and must publish recalled products through its digital channels. It will also instruct the business operator to disseminate the notice through a nationwide medium for a period of no less than thirty days. Failure to comply may be sanctioned under Article 104 of Law 45 of 2007.

The proposed Article 81-A governs motor vehicle recalls. It requires every importer or distributor to publish a current, clear, visible, and accessible list on its official website, and through any other medium specified by regulation, of vehicles of its brand with defects that compromise safety. The list must include the make, model, year of manufacture, a detailed description of the defect, the vehicle identification number (VIN), associated risks, and a procedure for owners to determine whether their vehicle is affected. Importers must keep this information publicly accessible for a minimum period of twelve (12) months.

For owners of affected vehicles, the bill provides for defective parts to be repaired or replaced at authorized workshops within no more than thirty (30) calendar days, even if the vehicle warranty has expired. The work must be free to the consumer, including labor and replacement parts. Proposed Article 81-B makes an importer or distributor civilly liable for losses and damage caused to consumers by its failure to fulfill these duties, in addition to any administrative penalties. If the omission results in personal injury or death, the legal representative or responsible company may face the corresponding criminal proceedings.

Proposed Article 81-C assigns oversight of these vehicle recall rules to the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia). It may check information held by international entities involved in vehicle recalls to determine whether importers or distributors concealed information. It may also inspect, request information, receive complaints, issue supplementary regulations, and impose penalties under Article 104. The bill confirms the amendment and additions to Law 45 of October 31, 2007, and provides for commencement on the day following promulgation. Its provisions concern that public authority and the manufacture, importation, distribution, sale, and repair of goods and vehicles, as well as affected consumers and vehicle owners in Panama.