Bill 654.

Summary.

The bill regulates commercial communications disseminated by digital content creators to protect consumers’ right to truthful, sufficient and nonmisleading information. It would cover content addressed to audiences in Panama regardless of where the creator or advertiser is based, when it promotes goods or services available in the country in Spanish, the advertiser has a commercial presence in Panama, or the content expressly targets Panamanian audiences. It establishes special rules that prevail over the general advertising provisions of Law 45 of October 31, 2007, which would apply where the bill makes no specific provision. It defines content creators, commercial communications, covert advertising, consideration, digital platforms, advertisers and intermediary agencies.

Every commercial communication would have to be identified clearly, expressly and in advance so that consumers can distinguish it from unsponsored content. A visible identifier must appear at the beginning, using #Publicidad, #Patrocinado, #Colaboración, #Anuncio or #PublicidadPagada, or a platform’s tools for identifying sponsored content or paid partnerships. Generic references are insufficient if they prevent consumers from recognizing that consideration was provided. The identifier must be in Spanish, legible and at least as large as the main text. In audiovisual content, it must remain visible throughout the communication or be announced verbally at the beginning. It may not be concealed among other tags or expressions.

These duties cover posts made in exchange for monetary or nonmonetary benefits, including free products for testing or review, brand-sponsored trips and events, discount codes or affiliate links generating commissions, brand ambassador arrangements and sponsored live streams. Failure to identify an advertisement, including partial identification, is prohibited; omission would itself constitute misleading advertising under Law 45 of 2007. When promoted goods or services are subject to special advertising rules, creators and advertisers must also comply with those rules, particularly for health products, alcoholic beverages, games of chance and financial services.

Where the audience is predominantly minors, or the creator is a minor, the bill prohibits advertising products restricted for minors, requires identification understandable to the audience, and bars techniques exploiting inexperience or pressuring parents or representatives. If the creator is a minor, the creator’s parents, guardians or legal representatives and the advertiser are jointly liable. More generally, creators and advertisers are jointly liable, and the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia) may bring administrative proceedings against either or both, even when an agency is involved. Infringements would be subject to the sanctions under Law 45 of 2007 and possible suspension and correction of advertising. The bill amends Article 58 of that law to expressly cover digital platforms and social media and refer creator advertising to the special law. It would take effect six months after promulgation. Its provisions concern that authority as well as consumers, creators, advertisers, agencies, digital platforms and sectors advertising goods and services.