Bill 668.

Summary.

The bill would add to Law 45 of October 31, 2007 a definition of a reservation payment: money a consumer gives a supplier to reserve a specified good temporarily before the sale is finalized, under terms agreed in advance. It would also add an obligation for suppliers receiving such a payment. They would have to give the consumer a physical or electronic document identifying both parties, describing the good, and stating its total price, the amount paid, the reservation period, and the conditions for completing the sale.

The document would also have to state the grounds for a full refund or forfeiture of no more than 20% of the payment where legally applicable, together with its date of issue and the parties’ signatures or method of acceptance. If the document is absent, the terms would be presumed favorable to the consumer unless evidence establishes otherwise. This documentation requirement would record the agreed reservation terms for use in determining what happens to the money paid if the sale is not completed.

The supplier would have to refund the payment in full when the sale fails to be completed for a reason attributable to the supplier. The bill lists lack of inventory, inability to deliver the offered good, a reservation error, failure to meet the delivery deadline, dissolution, closure or cessation of the supplier’s operations, and any other breach attributable to the supplier. A refund would also be due if both parties agree to cancel the transaction.

If the sale is not completed solely because of the consumer, a full refund might be unavailable if the relevant terms were disclosed beforehand and expressly accepted. The bill lists failure to meet the agreed payment deadline, lack of financial resources, and loss of interest in buying the good. The supplier could retain part of the payment only if that consequence was agreed clearly, expressly and verifiably. Without such evidence, the consumer would be entitled to a full refund. Even where retention was agreed, it could not exceed twenty percent (20%) of the amount paid.

The Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia) would hear disputes concerning these refunds. After the applicable administrative procedure, it could order a full or partial refund upon finding a ground provided by the law, without prejudice to any applicable administrative sanctions. Clauses, notices, advertisements, commercial policies and other unilateral statements declaring consumer payments categorically nonrefundable in violation of the law would be void by operation of law. The bill restates its additions to Law 45 of October 31, 2007 and provides for commencement on the day following promulgation. Its provisions would concern that public authority, suppliers that reserve goods, and consumers who make reservation payments.