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Latin American Consumer Guide 2024

Guatemala

(Latin America/Caribbean) Firm Mayora & Mayora, S.C.

Contributors Juan Pablo Gramajo Castro

What is the applicable legal regime addressing consumer protection in your jurisdiction?

The Consumer and User Protection Act, Congressional Decree 6-2003, and its Executive Rule contained in Government Agreement 777-2003, both as amended.

 

What is the definition of a consumer?

Article 3.c) of the Act defines a consumer as the individual or entity, public or private, national or foreign, who acquires, uses or enjoys goods of any nature by virtue of any legal act involving a price (or other legal consideration) or of any established right.

A user is defined by Article 3.k) of the Act as the individual or entity who, through any title involving a price (or other legal consideration) or any established right, acquires services rendered or supplied by public or private providers.

What goods and services are covered by consumer protection legislation in your jurisdiction?

The Act applies to all legal acts between providers and consumers/users within Guatemalan territory, and to all economic agents, whether individuals or entities.

It applies in a supplementary manner to public services regulated in specific legislation, as well as to any goods or services covered by other special regulations.

It does not apply to personal services under an employment relationship, or in a professional or technical capacity.

Do the applicable regulations provide a list of consumer rights?

Yes.

  1. Protection of their life, health, and safety in the acquisition, consumption, and use of goods and services.
  2. Freedom to choose the good or service.
  3. Freedom of contract.
  4. Truthful, sufficient, clear, and timely information regarding goods and services, stating whether they are new, used, or rebuilt, as well as their prices, characteristics, quality, content, and eventual risks.
  5. Repair, payment of damages, reimbursement, or exchange of the good for non-compliance with the terms of the transaction and the provisions of the Act or other laws, or for latent defects which are the responsibility of the provider.
  6. Replacement of the product, application of its value toward the purchase of another, or reimbursement of what was paid in excess, when the quality or quantity is lower than stated.
  7. Sustainability of prices stated in offers, promotions, publicity, or labels in the commercial establishment.
  8. Return to the provider any goods sent without prior request. In this case, the consumer/user is not obligated to assume any responsibility or make any payment, except if they have expressly accepted the delivery or have used or consumed the product.
  9. Receive education on the appropriate consumption and use of goods or services, enabling knowledge and exercise of their rights and obligations.
  10. Use the complaint book or any other means legally authorized by the Consumer Protection Office to register their in conformity regarding any good or service.

 

Do the applicable regulations provide a list of consumer duties?

Yes.

  1. Pay for the goods or services in the time, manner, and conditions established in the agreement.
  2. Use the goods and services according to their normal use and the specifications stated by the provider, complying with the agreed conditions.
  3. Prevent environmental pollution through the rational consumption of goods and services.

 

Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?

No, the Act defines a provider as offering goods or services within Guatemalan territory and grants the Consumer Protection Office jurisdiction in all national territory.

The provider may be a foreign company but, under general rules of the Guatemalan Commerce Code, will require local presence (a branch or subsidiary) to offer goods or services in Guatemala, except in specifically defined situations.

Is there any alternative or special regime depending on the type of good or service?

Yes, as stated previously, the Act applies in a supplementary manner to public services regulated in specific legislation, as well as to any goods or services covered by other special regulations.

This has been relevant to areas such as telecommunications, banking and finance, and electricity, among others, which have each their own Act and related rules and regulations, as well as their administrative oversight authorities.

In practice, the Consumer Protection Office (which is part of the Ministry of the Economy under the Executive Branch) has established agreements with the sector-specific authorities for purposes of consumer protection, with varying scopes.

What is the minimum information required to be provided to the consumer with respect to goods?

The characteristics of the goods or services, measurements, composition, weight, quality, price, instructions for use and risks or hazards of their use or consumption, payment conditions, warranty, date of manufacture, and of expiration.

 

Is there a general warranty for products and/or services?

Yes, new durable goods must include a certificate specifying the content of the warranty, the obligated party and the manner, term and place in which the consumer/user may claim it.

Manufacturers, importers and sellers of such goods must ensure adequate technical service and supply replacement parts, at no additional cost, during the warranty term.

Service providers must state in writing the term during which they guarantee the service or repair. The consumer/user may file claim for defects or damages caused by faulty service or repair.

Are there any products that have a legal warranty different from the general warranty?

No, there are no legal warranties different from the ones specified above.

For what reasons could the consumer initiate a complaint regarding a purchased product or service?

Consumers may file complaints for any breach or non-compliance with the provider's obligations under the Act or agreements.

 

Is there a specific judicial action to resolve lawsuits arising from consumer matters?

No, the Act establishes an administrative authority and procedure to hear complaints. If judicial action were to be taken, it would fall under the general rules of civil and commercial procedure.

If there is no specific judicial action, how does the consumer make a claim?

Claims may be brought before the Consumer Protection Office, called the Direction for Attention and Assistance to the Consumer (DIACO, by its Spanish acronym), an office of the Ministry of the Economy within the Executive Branch.

 

What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.

Damages are compensatory of damage and loss. In addition, DIACO may impose and collect administrative fines.

 

Can consumer issues lead to class actions?

No, class actions are not recognized in the Guatemalan rules of civil and commercial procedure.

How often does this occur?

N/A

Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.

The responsible party is the provider, which the Act defines as any individual or entity carrying out production, manufacture, transformation, import, construction, distribution, or commercialization of goods or provision of services. It is a broad definition encompassing all related activities.

The producer, importer, distributor, or provider, as may be the case, shall be jointly liable for damages arising from goods or services found to be hazardous or toxic in levels considered dangerous to the health or safety of persons.

Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?

Yes, DIACO has legal power to monitor, investigate and sanction non-compliance, but not to regulate.

 

What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment

DIACO may issue written warnings, public warnings, and fines. It may also publish findings of an investigation at the cost of the offending party.

There is no general maximum value for monetary sanctions, but specific minimum and maximum fines for particular offenses. However, the fine may in no case exceed the value of the good or service.

Fines are calculated in adjustable fine units, with each unit being equivalent to one month's minimum wage for non-agricultural activities. The highest penalties may be up to 80 units, for product alteration, lower content than stated in packaging, or misleading advertising.

Does the legal regime regulate safety campaigns or product recalls?

Yes, if a good is found to be defective in such a manner as to constitute a risk or hazard, even when used adequately, the provider must recall it from the market or substitute it, at their cost, as well as reimburse consumers who had already purchased it.

The provider must also inform DIACO and other corresponding State offices (such as the Ministry of Health, for example), and inform the public by publishing notices in newspapers and other media.

Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?

No, the Act only applies to goods and services provided in Guatemalan territory.

 

Are there any special regulations on e-commerce?

Yes, the Act for the Recognition of Electronic Communications and Signatures, Congressional Decree 47-2008, contains provisions on e-commerce in general and in specific matters.

 

What types of e-commerce platforms are regulated by your legislation? List and define them.

The Act does not regulate specific types of e-commerce platforms, but contains general provisions on, for example, information on the company and on the products and services that must be published online when engaging in e-commerce.

 

Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.

Yes, there are specific rights related to electronic communications, such as under which circumstances the sender has the right to correct errors, etc.

Aside from this, there are no additional rights specific to e-commerce. The Act contains a general provision safeguarding the applicability of consumer protection in e-commerce transactions.

Is this regime applicable for the purchase and sale of crypto assets?

Yes, there is no specific regulation on crypto assets in Guatemala. This regime could be applicable insofar as these assets fall within general categories of goods under common civil law, but it is not specifically tailored to the peculiarities of the crypto market.

 

 

Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?

No, the regime does not contemplate any provisions on influencer advertising.

 

Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?

No, there are no expected changes over the next 12 months that are likely to have a significant impact on the regime in Guatemala.

A new Government and Congress will be inaugurated in January 2024. The incoming party that will hold the Executive has, in the past, promoted legal amendments (unsuccessfully) on matters of consumer protection, and consumer protection forms part of their electoral proposals. However, they have for now prioritized strengthening DIACO for purposes of monitoring prices and preventing speculation.

Latin American Consumer Guide 2024

Guatemala

(Latin America/Caribbean) Firm Mayora & Mayora, S.C.

Contributors Juan Pablo Gramajo Castro

Updated