Summary.
Article 1 proposes adding Article 77-A to Law 45 of 2007 to govern continuous service contracts. It defines such a contract as one between a business and an end consumer whose principal obligation is to supply a service periodically or without interruption over time in exchange for recurring payment. The definition connects the proposed rules to the ongoing provision of a service and to the charges arising during the contractual relationship.
Under those contracts, the article makes recurring charges conditional on the service being effectively available to the consumer. If service is temporarily suspended because the consumer is in arrears, or is interrupted by the business, no charges would accrue for the period during which it is unavailable. The billing rule therefore turns on the period of actual service availability, whether the lack of service is connected to nonpayment or results from an interruption by the business.
The same article sets out the contractual effects of a suspension caused by the consumer’s breach. During that suspension, both the duty to provide the service and the running of the contractual term would be suspended. Once service resumes, the contract would be extended by a period equal to the exact time for which it was suspended. The agreed term would thus resume running upon restoration of service, allowing the consumer to receive the full benefit of the term originally agreed, taking account of the duration of the suspension.
Article 77-A would be applied in accordance with the principles of good faith and contractual balance. For services subject to special regulation, the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia) would coordinate with the National Public Services Authority (Autoridad Nacional de los Servicios Públicos) to apply these provisions consistently. The bill also provides that their application would not encroach on technical regulatory powers assigned by law to other administrative authorities. The coordination envisaged for specially regulated services would therefore operate within each authority’s legally assigned powers.
Article 2 states that the proposed law adds item 77 -A to Law 45 of October 31, 2007. Article 3 provides that the law would take effect upon its promulgation in the Official Gazette. By subject matter, the bill concerns the Consumer Protection and Competition Defense Authority, the National Public Services Authority, businesses that offer continuous services, and the end consumers who contract for those services.
What it proposes.
- Recurring billing for continuous services.
- Effects of service suspension on charges and the contractual term.
- Administrative coordination for services subject to special regulation.
Who it would affect.
- Businesses that provide continuous services.
- End consumers who contract for those services.
- Authorities responsible for applying the proposed provisions.
Key points.
- Defines a continuous service contract by the periodic or uninterrupted supply of a service in exchange for recurring payment.Art. 1
- Makes recurring charges conditional on the service being effectively available to the consumer.Art. 1
- Prevents charges from accruing during a suspension for nonpayment or an interruption by the business while service is unavailable.Art. 1
- Suspends the duty to provide service and the running of the contractual term when suspension results from the consumer’s breach.Art. 1
- Extends the contract, when service resumes, by the exact time for which it was suspended.Art. 1
- Provides for coordination between the competent authorities concerning specially regulated services without encroaching on technical regulatory powers assigned by law.Art. 1
- States that item 77 -A is added to Law 45 of October 31, 2007.Art. 2
- Sets the effective date at promulgation in the Official Gazette.Art. 3