Bill 688.

Summary.

The bill proposes additions to Law 45 of October 31, 2007 on consumer protection and competition. It addresses increases in prices, rates, fees or monthly charges under adhesion contracts involving successive or continuous performance. A new item in Article 74 would make a general contract term abusive and absolutely void if it permits such increases without prior, clear, express and individualized notice to the consumer at least thirty calendar days in advance, and without recognizing the consumer’s right to terminate the contract without a penalty under Article 77 of that Law.

Proposed Article 75-A governs notice of any upward change in a price, rate, fee or monthly charge under an adhesion contract for the continuous, periodic or successive supply of goods or services. The provider would have to notify the consumer at least thirty calendar days before the date on which it intends to apply the new charge. Notice would have to be individualized and sent by email, the provider’s official electronic messaging service, a digital platform, or another verifiable means previously authorized by the consumer. The provider would bear the burden of proving both dispatch and actual delivery to the authorized address, account or electronic platform. Contract terms concerning rate changes and the notice mechanism would have to be clear, prominent and readily identifiable, in accordance with Article 78 of the same Law.

Proposed Article 75-B sets out the effects of failing to meet the notice period or use the means required by Article 75-A. The increase would be absolutely void, and the consumer would owe no additional amount arising from it. Excess amounts collected would have to be refunded directly or, at the consumer’s choice, credited in the next billing period, within thirty calendar days after the claim is submitted. If the provider gives notice in accordance with Article 75-A, the consumer could reject the rate change and terminate the contract without a penalty, an early cancellation charge, retention of payments for services not provided, or any additional financial burden. The consumer would owe only amounts accrued at the rate in effect before the change, up to the effective termination date.

The bill specifies that item 10 of Article 74 and Articles 75-A and 75-B would be added to Chapter II of Title III of Law 45 of October 31, 2007. It provides that the proposed law would take effect on the day following its promulgation in the Official Gazette (Gaceta Oficial). Its provisions concern providers of goods or services under these contracts and their consumers, as well as the commerce and services sectors. The Official Gazette is the publication named for promulgation.